<?xml version="1.0"?>
<?xml-stylesheet type="text/xsl" href="fedregister.xsl"?>
<FEDREG xmlns:xsi="http://www.w3.org/2001/XMLSchema-instance" xsi:noNamespaceSchemaLocation="FRMergedXML.xsd">
    <VOL>90</VOL>
    <NO>73</NO>
    <DATE>Thursday, April 17, 2025</DATE>
    <UNITNAME>Contents</UNITNAME>
    <CNTNTS>
        <AGCY>
            <EAR>
                Fiscal
                <PRTPAGE P="iii"/>
            </EAR>
            <HD>Bureau of the Fiscal Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Creditor's Request for Payment of Treasury Securities Belonging to a Decedent's Estate Being Settled without Administration, </SJDOC>
                    <PGS>16424</PGS>
                    <FRDOCBP>2025-06484</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Civil Rights</EAR>
            <HD>Civil Rights Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Indiana Advisory Committee, </SJDOC>
                    <PGS>16106-16107</PGS>
                    <FRDOCBP>2025-06568</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>South Carolina Advisory Committee, </SJDOC>
                    <PGS>16106</PGS>
                    <FRDOCBP>2025-06567</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>U.S. Virgin Islands Advisory Committee; Cancellation, </SJDOC>
                    <PGS>16107</PGS>
                    <FRDOCBP>2025-06569</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Coast Guard</EAR>
            <HD>Coast Guard</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Drawbridge Operations:</SJ>
                <SJDENT>
                    <SJDOC>Passaic River, Harrison, NJ, </SJDOC>
                    <PGS>16087-16088</PGS>
                    <FRDOCBP>2025-06394</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Commerce</EAR>
            <HD>Commerce Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Foreign-Trade Zones Board</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>International Trade Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>National Oceanic and Atmospheric Administration</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Defense Department</EAR>
            <HD>Defense Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Engineers Corps</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Education Department</EAR>
            <HD>Education Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Part D Discretionary Grant Application—Individuals with Disabilities Education Act, </SJDOC>
                    <PGS>16116</PGS>
                    <FRDOCBP>2025-06572</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Energy Department</EAR>
            <HD>Energy Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Energy Regulatory Commission</P>
            </SEE>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <SJ>Energy Conservation Program:</SJ>
                <SJDENT>
                    <SJDOC>Procedures, Interpretations, and Policies for Consideration of New or Revised Energy Conservation Standards and Test Procedures for Consumer Products and Certain Commercial/Industrial Equipment, </SJDOC>
                    <PGS>16093-16101</PGS>
                    <FRDOCBP>2025-06330</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Environmental Management Site-Specific Advisory Board, Oak Ridge, </SJDOC>
                    <PGS>16117</PGS>
                    <FRDOCBP>2025-06489</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Engineers</EAR>
            <HD>Engineers Corps</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Proposals by Non-Federal Interests for Inclusion in the Annual Report to Congress on Future Water Resources Development, </DOC>
                    <PGS>16114-16116</PGS>
                    <FRDOCBP>2025-06578</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Environmental Protection</EAR>
            <HD>Environmental Protection Agency</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Air Quality State Implementation Plans; Approvals and Promulgations:</SJ>
                <SJDENT>
                    <SJDOC>Ohio; Volatile Organic Compounds, </SJDOC>
                    <PGS>16088-16090</PGS>
                    <FRDOCBP>2025-06604</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Distribution of Off-Site Consequence Analysis Information under  the Clean Air Act, </SJDOC>
                    <PGS>16125-16126</PGS>
                    <FRDOCBP>2025-06594</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Notification of Episodic Releases of Oil and Hazardous Substances, </SJDOC>
                    <PGS>16127-16128</PGS>
                    <FRDOCBP>2025-06592</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Risk Management Program Requirements and Petitions to Modify the List of Regulated Substances under the Clean Air Act, </SJDOC>
                    <PGS>16126-16127</PGS>
                    <FRDOCBP>2025-06589</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Draft Sewage Sludge Risk Assessment for Perfluorooctanoic Acid and Perfluorooctane Sulfonic Acid, </DOC>
                    <PGS>16128-16129</PGS>
                    <FRDOCBP>2025-06571</FRDOCBP>
                </DOCENT>
                <SJ>National Pollutant Discharge Elimination System:</SJ>
                <SJDENT>
                    <SJDOC>General Permit for Bulk Fuel Facilities in Guam, </SJDOC>
                    <PGS>16125</PGS>
                    <FRDOCBP>2025-06603</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Aviation</EAR>
            <HD>Federal Aviation Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Airworthiness Directives:</SJ>
                <SJDENT>
                    <SJDOC>Airbus Helicopters, </SJDOC>
                    <PGS>16077-16085</PGS>
                    <FRDOCBP>2025-06558</FRDOCBP>
                      
                    <FRDOCBP>2025-06560</FRDOCBP>
                      
                    <FRDOCBP>2025-06561</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <SJ>Airspace Designations and Reporting Points:</SJ>
                <SJDENT>
                    <SJDOC>Chambersburg, PA, </SJDOC>
                    <PGS>16101-16102</PGS>
                    <FRDOCBP>2025-06570</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Communications</EAR>
            <HD>Federal Communications Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>16129-16130</PGS>
                    <FRDOCBP>2025-06551</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Emergency</EAR>
            <HD>Federal Emergency Management Agency</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Consolidated Federal Emergency Management Agency-National Training and Education Division Level 3 Training Evaluation Forms, </SJDOC>
                    <PGS>16146-16148</PGS>
                    <FRDOCBP>2025-06596</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Preparedness Grants:  Transit Security Grant Program and Intercity Bus Security Grant Program, </SJDOC>
                    <PGS>16148-16149</PGS>
                    <FRDOCBP>2025-06595</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Flood Hazard Determinations, </DOC>
                    <PGS>16140-16146, 16149-16158</PGS>
                    <FRDOCBP>2025-06597</FRDOCBP>
                      
                    <FRDOCBP>2025-06598</FRDOCBP>
                      
                    <FRDOCBP>2025-06599</FRDOCBP>
                      
                    <FRDOCBP>2025-06600</FRDOCBP>
                      
                    <FRDOCBP>2025-06601</FRDOCBP>
                      
                    <FRDOCBP>2025-06602</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Energy</EAR>
            <HD>Federal Energy Regulatory Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Application:</SJ>
                <SJDENT>
                    <SJDOC>Rivers Electric, LLC, </SJDOC>
                    <PGS>16119-16120</PGS>
                    <FRDOCBP>2025-06612</FRDOCBP>
                </SJDENT>
                <DOCENT>
                    <DOC>Combined Filings, </DOC>
                    <PGS>16117-16118, 16120</PGS>
                    <FRDOCBP>2025-06616</FRDOCBP>
                      
                    <FRDOCBP>2025-06620</FRDOCBP>
                </DOCENT>
                <SJ>Environmental Assessments; Availability, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Gulf South Pipeline Co., LLC, </SJDOC>
                    <PGS>16124</PGS>
                    <FRDOCBP>2025-06619</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Heartland Project; ANR Pipeline Co., </SJDOC>
                    <PGS>16120-16121</PGS>
                    <FRDOCBP>2025-06615</FRDOCBP>
                </SJDENT>
                <SJ>Petition for Declaratory Order:</SJ>
                <SJDENT>
                    <SJDOC>UGI LNG, Inc., </SJDOC>
                    <PGS>16118-16119</PGS>
                    <FRDOCBP>2025-06613</FRDOCBP>
                </SJDENT>
                <SJ>Scoping Period:</SJ>
                <SJDENT>
                    <SJDOC>Rockies Express Pipeline, LLC, </SJDOC>
                    <PGS>16121-16123</PGS>
                    <FRDOCBP>2025-06614</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Motor</EAR>
            <HD>Federal Motor Carrier Safety Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Exemption Application:</SJ>
                <SJDENT>
                    <SJDOC>Parts and Accessories Necessary for Safe Operation; Yarde Metals, Inc., </SJDOC>
                    <PGS>16422-16423</PGS>
                    <FRDOCBP>2025-06550</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Federal Reserve</EAR>
            <HD>Federal Reserve System</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Change in Bank Control:</SJ>
                <SJDENT>
                    <SJDOC>Acquisitions of Shares of a Bank or Bank Holding Company, </SJDOC>
                    <PGS>16130</PGS>
                    <FRDOCBP>2025-06581</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>
                Federal Trade
                <PRTPAGE P="iv"/>
            </EAR>
            <HD>Federal Trade Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Petition to Reopen and Set Aside Order:</SJ>
                <SJDENT>
                    <SJDOC>Chevron Corp. and Hess Corp., </SJDOC>
                    <PGS>16130-16134</PGS>
                    <FRDOCBP>2025-06564</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Scott Sheffield, </SJDOC>
                    <PGS>16134-16136</PGS>
                    <FRDOCBP>2025-06562</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Fish</EAR>
            <HD>Fish and Wildlife Service</HD>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <DOCENT>
                    <DOC>Rescinding the Definition of Harm under the Endangered Species Act, </DOC>
                    <PGS>16102-16105</PGS>
                    <FRDOCBP>2025-06746</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Foreign Assets</EAR>
            <HD>Foreign Assets Control Office</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Sanctions Action, </DOC>
                    <PGS>16424-16426</PGS>
                    <FRDOCBP>2025-06577</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Foreign Trade</EAR>
            <HD>Foreign-Trade Zones Board</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Proposed Production Activity:</SJ>
                <SJDENT>
                    <SJDOC>SSI Shredding Systems, Inc., Foreign-Trade Zone 45, Wilsonville and Portland, OR, </SJDOC>
                    <PGS>16107</PGS>
                    <FRDOCBP>2025-06575</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>General Services</EAR>
            <HD>General Services Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Fleet Management Information Systems, </DOC>
                    <PGS>16136</PGS>
                    <FRDOCBP>2025-06582</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Health and Human</EAR>
            <HD>Health and Human Services Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>National Institutes of Health</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Substance Abuse and Mental Health Services Administration</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Homeland</EAR>
            <HD>Homeland Security Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Coast Guard</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Emergency Management Agency</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>U.S. Customs and Border Protection</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Housing</EAR>
            <HD>Housing and Urban Development Department</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Home Investment Partnerships Program:</SJ>
                <SJDENT>
                    <SJDOC>Program Updates and Streamlining, </SJDOC>
                    <PGS>16085-16087</PGS>
                    <FRDOCBP>2025-06492</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Waivers and Alternative Requirements:</SJ>
                <SJDENT>
                    <SJDOC>Community Development Block Grant Disaster Recovery Grantee, </SJDOC>
                    <PGS>16158-16162</PGS>
                    <FRDOCBP>2025-06549</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Indian Affairs</EAR>
            <HD>Indian Affairs Bureau</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Helping Expedite and Advance Responsible Tribal Homeownership Act Approval:</SJ>
                <SJDENT>
                    <SJDOC>Shawnee Tribe Leasing Ordinance, </SJDOC>
                    <PGS>16162-16164</PGS>
                    <FRDOCBP>2025-06607</FRDOCBP>
                </SJDENT>
                <SJ>Indian Gaming:</SJ>
                <SJDENT>
                    <SJDOC>Extension of Tribal-State Class III Gaming Compact in Nevada, </SJDOC>
                    <PGS>16171-16172</PGS>
                    <FRDOCBP>2025-06606</FRDOCBP>
                </SJDENT>
                <SJ>Liquor Control Ordinance:</SJ>
                <SJDENT>
                    <SJDOC>Pueblo of Santa Clara, NM, </SJDOC>
                    <PGS>16164-16171</PGS>
                    <FRDOCBP>2025-06580</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Interior</EAR>
            <HD>Interior Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Fish and Wildlife Service</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Indian Affairs Bureau</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Internal Revenue</EAR>
            <HD>Internal Revenue Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Agency Information Collection Activities; Proposals, Submissions, and Approvals, </DOC>
                    <PGS>16426-16427</PGS>
                    <FRDOCBP>2025-06493</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>International Trade Adm</EAR>
            <HD>International Trade Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Sales at Less Than Fair Value; Determinations, Investigations, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Float Glass Products from the People's Republic of China and Malaysia, </SJDOC>
                    <PGS>16107-16108</PGS>
                    <FRDOCBP>2025-06585</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>International Trade Com</EAR>
            <HD>International Trade Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Complaint, </DOC>
                    <PGS>16172-16173</PGS>
                    <FRDOCBP>2025-06559</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Judicial Conference</EAR>
            <HD>Judicial Conference of the United States</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Advisory Committee on Bankruptcy Rules, </SJDOC>
                    <PGS>16173</PGS>
                    <FRDOCBP>2025-06515</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Committee on Rules of Practice and Procedure, </SJDOC>
                    <PGS>16173</PGS>
                    <FRDOCBP>2025-06521</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Justice Department</EAR>
            <HD>Justice Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Privacy Act; Systems of Records, </DOC>
                    <PGS>16173-16177</PGS>
                    <FRDOCBP>2025-05846</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Endowment for the Arts</EAR>
            <HD>National Endowment for the Arts</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>National Council on the Arts, </SJDOC>
                    <PGS>16177</PGS>
                    <FRDOCBP>2025-06398</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Foundation</EAR>
            <HD>National Foundation on the Arts and the Humanities</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>National Endowment for the Arts</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>National Institute</EAR>
            <HD>National Institutes of Health</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>National Cancer Institute, </SJDOC>
                    <PGS>16137</PGS>
                    <FRDOCBP>2025-06556</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>National Institute of Neurological Disorders and Stroke, </SJDOC>
                    <PGS>16138</PGS>
                    <FRDOCBP>2025-06490</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>National Institute on Minority Health and Health Disparities, </SJDOC>
                    <PGS>16137-16138</PGS>
                    <FRDOCBP>2025-06487</FRDOCBP>
                      
                    <FRDOCBP>2025-06488</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>National Institute on Minority Health and Health Disparities; Cancellation, </SJDOC>
                    <PGS>16136-16138</PGS>
                    <FRDOCBP>2025-06486</FRDOCBP>
                      
                    <FRDOCBP>2025-06491</FRDOCBP>
                </SJDENT>
                <SJ>Licenses; Exemptions, Applications, Amendments etc.:</SJ>
                <SJDENT>
                    <SJDOC>Inter-Institutional Agreement-Institution Lead: Conductive Polymer Coated Electrodes for Dielectrophoretic Cell Positioning and Electroporation, </SJDOC>
                    <PGS>16137-16138</PGS>
                    <FRDOCBP>2025-06576</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>National Oceanic</EAR>
            <HD>National Oceanic and Atmospheric Administration</HD>
            <CAT>
                <HD>RULES</HD>
                <SJ>Fisheries of the Exclusive Economic Zone off Alaska:</SJ>
                <SJDENT>
                    <SJDOC>Pacific Cod by Vessels Using Jig Gear in the Central Regulatory Area of the Gulf of Alaska, </SJDOC>
                    <PGS>16092</PGS>
                    <FRDOCBP>2025-06622</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Recreational Fishing for Chinook Salmon in the Cook Inlet Exclusive Economic Zone Area, </SJDOC>
                    <PGS>16091-16092</PGS>
                    <FRDOCBP>2025-06623</FRDOCBP>
                </SJDENT>
                <SJ>Fisheries off West Coast States:</SJ>
                <SJDENT>
                    <SJDOC>Modification of the West Coast Salmon Fisheries; Inseason Action No. 19, </SJDOC>
                    <PGS>16090-16091</PGS>
                    <FRDOCBP>2025-06584</FRDOCBP>
                </SJDENT>
            </CAT>
            <CAT>
                <HD>PROPOSED RULES</HD>
                <DOCENT>
                    <DOC>Rescinding the Definition of Harm under the Endangered Species Act, </DOC>
                    <PGS>16102-16105</PGS>
                    <FRDOCBP>2025-06746</FRDOCBP>
                </DOCENT>
            </CAT>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Endangered and Threatened Species:</SJ>
                <SJDENT>
                    <SJDOC>Initiation of 5-Year Reviews for Six Foreign Elasmobranch Species, </SJDOC>
                    <PGS>16109-16110</PGS>
                    <FRDOCBP>2025-06590</FRDOCBP>
                </SJDENT>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>Council Coordination Committee, </SJDOC>
                    <PGS>16108-16109</PGS>
                    <FRDOCBP>2025-06626</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Fisheries of the South Atlantic; Southeast Data, Assessment, and Review, </SJDOC>
                    <PGS>16112-16113</PGS>
                    <FRDOCBP>2025-06627</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Gulf Fishery Management Council, </SJDOC>
                    <PGS>16114</PGS>
                    <FRDOCBP>2025-06625</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Mid-Atlantic Fishery Management Council, </SJDOC>
                    <PGS>16109</PGS>
                    <FRDOCBP>2025-06553</FRDOCBP>
                </SJDENT>
                <SJ>Permits; Applications, Issuances, etc.:</SJ>
                <SJDENT>
                    <SJDOC>General Provisions for Domestic Fisheries; Exempted Fishing, </SJDOC>
                    <PGS>16111-16112</PGS>
                    <FRDOCBP>2025-06588</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Marine Mammals; File No. 27552, </SJDOC>
                    <PGS>16113</PGS>
                    <FRDOCBP>2025-06579</FRDOCBP>
                </SJDENT>
                <SJ>Requests for Nominations:</SJ>
                <SJDENT>
                    <SJDOC>Western and Central Pacific Fisheries Commission Permanent Advisory Committee, </SJDOC>
                    <PGS>16110-16111</PGS>
                    <FRDOCBP>2025-06586</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>
                Postal Service
                <PRTPAGE P="v"/>
            </EAR>
            <HD>Postal Service</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Product Change:</SJ>
                <SJDENT>
                    <SJDOC>Priority Mail and USPS Ground Advantage Negotiated Service Agreement, </SJDOC>
                    <PGS>16177-16181</PGS>
                    <FRDOCBP>2025-06529</FRDOCBP>
                      
                    <FRDOCBP>2025-06530</FRDOCBP>
                      
                    <FRDOCBP>2025-06532</FRDOCBP>
                      
                    <FRDOCBP>2025-06533</FRDOCBP>
                      
                    <FRDOCBP>2025-06534</FRDOCBP>
                      
                    <FRDOCBP>2025-06535</FRDOCBP>
                      
                    <FRDOCBP>2025-06536</FRDOCBP>
                      
                    <FRDOCBP>2025-06537</FRDOCBP>
                      
                    <FRDOCBP>2025-06538</FRDOCBP>
                      
                    <FRDOCBP>2025-06539</FRDOCBP>
                      
                    <FRDOCBP>2025-06540</FRDOCBP>
                      
                    <FRDOCBP>2025-06541</FRDOCBP>
                      
                    <FRDOCBP>2025-06542</FRDOCBP>
                      
                    <FRDOCBP>2025-06543</FRDOCBP>
                      
                    <FRDOCBP>2025-06544</FRDOCBP>
                      
                    <FRDOCBP>2025-06545</FRDOCBP>
                      
                    <FRDOCBP>2025-06546</FRDOCBP>
                      
                    <FRDOCBP>2025-06547</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Priority Mail Express, Priority Mail, and USPS Ground Advantage Negotiated Service Agreement, </SJDOC>
                    <PGS>16179-16181</PGS>
                    <FRDOCBP>2025-06526</FRDOCBP>
                      
                    <FRDOCBP>2025-06527</FRDOCBP>
                      
                    <FRDOCBP>2025-06528</FRDOCBP>
                      
                    <FRDOCBP>2025-06531</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Presidential Documents</EAR>
            <HD>Presidential Documents</HD>
            <CAT>
                <HD>ADMINISTRATIVE ORDERS</HD>
                <DOCENT>
                    <DOC>Russian-Affiliated Vessels, Anchorage of and Movement to U.S. Ports; Continuation of National Emergency and Emergency Authority Relating to Regulation (Notice of April 15, 2025), </DOC>
                    <PGS>16429-16431</PGS>
                    <FRDOCBP>2025-06799</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Securities</EAR>
            <HD>Securities and Exchange Commission</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Application:</SJ>
                <SJDENT>
                    <SJDOC>Green Impact Exchange, LLC, </SJDOC>
                    <PGS>16207-16222</PGS>
                    <FRDOCBP>2025-06563</FRDOCBP>
                </SJDENT>
                <SJ>Self-Regulatory Organizations; Proposed Rule Changes:</SJ>
                <SJDENT>
                    <SJDOC>BOX Exchange LLC, </SJDOC>
                    <PGS>16229-16236, 16298-16305, 16316-16324, 16410-16418</PGS>
                    <FRDOCBP>2025-06516</FRDOCBP>
                      
                    <FRDOCBP>2025-06524</FRDOCBP>
                      
                    <FRDOCBP>2025-06525</FRDOCBP>
                      
                    <FRDOCBP>2025-06506</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe BZX Exchange, Inc., </SJDOC>
                    <PGS>16222-16224, 16260-16270, 16348-16356, 16372-16380</PGS>
                    <FRDOCBP>2025-06507</FRDOCBP>
                      
                    <FRDOCBP>2025-06510</FRDOCBP>
                      
                    <FRDOCBP>2025-06513</FRDOCBP>
                      
                    <FRDOCBP>2025-06514</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe EDGA Exchange, Inc., </SJDOC>
                    <PGS>16356-16359</PGS>
                    <FRDOCBP>2025-06520</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe EDGX Exchange, Inc., </SJDOC>
                    <PGS>16305-16316, 16324-16332, 16402-16410</PGS>
                    <FRDOCBP>2025-06508</FRDOCBP>
                      
                    <FRDOCBP>2025-06511</FRDOCBP>
                      
                    <FRDOCBP>2025-06512</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Cboe Exchange, Inc., </SJDOC>
                    <PGS>16236-16246, 16290-16298</PGS>
                    <FRDOCBP>2025-06509</FRDOCBP>
                      
                    <FRDOCBP>2025-06518</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Miami International Securities Exchange, LLC, </SJDOC>
                    <PGS>16272-16283, 16339-16348, 16380-16388</PGS>
                    <FRDOCBP>2025-06499</FRDOCBP>
                      
                    <FRDOCBP>2025-06522</FRDOCBP>
                      
                    <FRDOCBP>2025-06555</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>MIAX PEARL, LLC, </SJDOC>
                    <PGS>16201-16207, 16253-16260, 16359-16366</PGS>
                    <FRDOCBP>2025-06497</FRDOCBP>
                      
                    <FRDOCBP>2025-06505</FRDOCBP>
                      
                    <FRDOCBP>2025-06519</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>MIAX Sapphire, LLC, </SJDOC>
                    <PGS>16194-16201, 16332-16339, 16366-16372</PGS>
                    <FRDOCBP>2025-06498</FRDOCBP>
                      
                    <FRDOCBP>2025-06504</FRDOCBP>
                      
                    <FRDOCBP>2025-06552</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nasdaq BX, Inc., </SJDOC>
                    <PGS>16270-16272</PGS>
                    <FRDOCBP>2025-06500</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nasdaq ISE, LLC, </SJDOC>
                    <PGS>16388-16402</PGS>
                    <FRDOCBP>2025-06501</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Nasdaq PHLX LLC, </SJDOC>
                    <PGS>16226-16229, 16418-16420</PGS>
                    <FRDOCBP>2025-06503</FRDOCBP>
                      
                    <FRDOCBP>2025-06517</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>NYSE American LLC, </SJDOC>
                    <PGS>16247-16253</PGS>
                    <FRDOCBP>2025-06494</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>NYSE Arca, Inc., </SJDOC>
                    <PGS>16181-16188, 16283-16290</PGS>
                    <FRDOCBP>2025-06495</FRDOCBP>
                      
                    <FRDOCBP>2025-06496</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>The Depository Trust Co., </SJDOC>
                    <PGS>16188-16194</PGS>
                    <FRDOCBP>2025-06523</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>The Nasdaq Stock Market LLC, </SJDOC>
                    <PGS>16225-16226</PGS>
                    <FRDOCBP>2025-06502</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>State Department</EAR>
            <HD>State Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Agency Information Collection Activities; Proposals, Submissions, and Approvals:</SJ>
                <SJDENT>
                    <SJDOC>Medical Examination for Visa or Immigration Benefit, </SJDOC>
                    <PGS>16420-16421</PGS>
                    <FRDOCBP>2025-06628</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Substance</EAR>
            <HD>Substance Abuse and Mental Health Services Administration</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Supplemental Funding Opportunity, </DOC>
                    <PGS>16138-16139</PGS>
                    <FRDOCBP>2025-06611</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Surface Transportation</EAR>
            <HD>Surface Transportation Board</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Exemption:</SJ>
                <SJDENT>
                    <SJDOC>Discontinuance of Service; CSX Transportation, Inc., Bergen County, NJ, and Rockland County, NY, </SJDOC>
                    <PGS>16421</PGS>
                    <FRDOCBP>2025-06548</FRDOCBP>
                </SJDENT>
                <SJDENT>
                    <SJDOC>Trackage Rights; Grainbelt Corp., BNSF Railway Co., </SJDOC>
                    <PGS>16421-16422</PGS>
                    <FRDOCBP>2025-06583</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Transportation Department</EAR>
            <HD>Transportation Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Aviation Administration</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Federal Motor Carrier Safety Administration</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Treasury</EAR>
            <HD>Treasury Department</HD>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Bureau of the Fiscal Service</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Foreign Assets Control Office</P>
            </SEE>
            <SEE>
                <HD SOURCE="HED">See</HD>
                <P>Internal Revenue Service</P>
            </SEE>
        </AGCY>
        <AGCY>
            <EAR>Customs</EAR>
            <HD>U.S. Customs and Border Protection</HD>
            <CAT>
                <HD>NOTICES</HD>
                <SJ>Hearings, Meetings, Proceedings, etc.:</SJ>
                <SJDENT>
                    <SJDOC>2025 Trade and Cargo Security Summit, </SJDOC>
                    <PGS>16139-16140</PGS>
                    <FRDOCBP>2025-06574</FRDOCBP>
                </SJDENT>
            </CAT>
        </AGCY>
        <AGCY>
            <EAR>Veteran Affairs</EAR>
            <HD>Veterans Affairs Department</HD>
            <CAT>
                <HD>NOTICES</HD>
                <DOCENT>
                    <DOC>Order Suspending the Application, </DOC>
                    <PGS>16427</PGS>
                    <FRDOCBP>2025-06566</FRDOCBP>
                </DOCENT>
            </CAT>
        </AGCY>
        <PTS>
            <HD SOURCE="HED">Separate Parts In This Issue</HD>
            <HD>Part II</HD>
            <DOCENT>
                <DOC>Presidential Documents, </DOC>
                <PGS>16429-16431</PGS>
                <FRDOCBP>2025-06799</FRDOCBP>
            </DOCENT>
        </PTS>
        <AIDS>
            <HD SOURCE="HED">Reader Aids</HD>
            <P>Consult the Reader Aids section at the end of this issue for phone numbers, online resources, finding aids, and notice of recently enacted public laws.</P>
            <P>To subscribe to the Federal Register Table of Contents electronic mailing list, go to https://public.govdelivery.com/accounts/USGPOOFR/subscriber/new, enter your e-mail address, then follow the instructions to join, leave, or manage your subscription.</P>
        </AIDS>
    </CNTNTS>
    <VOL>90</VOL>
    <NO>73</NO>
    <DATE>Thursday, April 17, 2025</DATE>
    <UNITNAME>Rules and Regulations</UNITNAME>
    <RULES>
        <RULE>
            <PREAMB>
                <PRTPAGE P="16077"/>
                <AGENCY TYPE="F">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 39</CFR>
                <DEPDOC>[Docket No. FAA-2025-0620; Project Identifier MCAI-2025-00020-R; Amendment 39-23015; AD 2025-08-02]</DEPDOC>
                <RIN>RIN 2120-AA64</RIN>
                <SUBJECT>Airworthiness Directives; Airbus Helicopters</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The FAA is adopting a new airworthiness directive (AD) for certain Airbus Helicopters Model H160-B helicopters. This AD was prompted by reports of difficulty moving the locking fingers when applying the jettisoning function of the windows. This AD requires repetitively lubricating the locking fingers of each jettisonable window, performing an operational test, and depending on the results, performing corrective actions. These actions are specified in a European Union Aviation Safety Agency (EASA) AD, which is incorporated by reference. The FAA is issuing this AD to address the unsafe condition on these products.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This AD is effective May 2, 2025.</P>
                    <P>The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of May 2, 2025.</P>
                    <P>The FAA must receive comments on this AD by June 2, 2025.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">regulations.gov</E>
                        . Follow the instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Fax:</E>
                         (202) 493-2251.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery:</E>
                         Deliver to Mail address above between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        <E T="03">AD Docket:</E>
                         You may examine the AD docket at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2025-0620; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this final rule, the mandatory continuing airworthiness information (MCAI), any comments received, and other information. The street address for Docket Operations is listed above.
                    </P>
                    <P>
                        <E T="03">Material Incorporated by Reference:</E>
                    </P>
                    <P>
                        • For EASA material identified in this AD, contact EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; phone: +49 221 8999 000; email: 
                        <E T="03">ADs@easa.europa.eu;</E>
                         website: 
                        <E T="03">easa.europa.eu.</E>
                         You may find the EASA material on the EASA website at 
                        <E T="03">ad.easa.europa.eu.</E>
                    </P>
                    <P>
                        • You may view this material at the FAA, Office of the Regional Counsel, Southwest Region, 10101 Hillwood Parkway, Room 6N-321, Fort Worth, TX 76177. For information on the availability of this material at the FAA, call (817) 222-5110. It is also available at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2025-0620.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Alexis Whitaker, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY; phone: (516) 228-7309; email: 
                        <E T="03">alexis.j.whitaker@faa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Comments Invited</HD>
                <P>
                    The FAA invites you to send any written data, views, or arguments about this final rule. Send your comments to an address listed under the 
                    <E T="02">ADDRESSES</E>
                     section. Include “Docket No. FAA-2025-0620; Project Identifier MCAI-2025-00020-R” at the beginning of your comments. The most helpful comments reference a specific portion of the final rule, explain the reason for any recommended change, and include supporting data. The FAA will consider all comments received by the closing date and may amend this final rule because of those comments.
                </P>
                <P>
                    Except for Confidential Business Information (CBI) as described in the following paragraph, and other information as described in 14 CFR 11.35, the FAA will post all comments received, without change, to 
                    <E T="03">regulations.gov</E>
                    , including any personal information you provide. The agency will also post a report summarizing each substantive verbal contact received about this final rule.
                </P>
                <HD SOURCE="HD1">Confidential Business Information</HD>
                <P>CBI is commercial or financial information that is both customarily and actually treated as private by its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public disclosure. If your comments responsive to this AD contain commercial or financial information that is customarily treated as private, that you actually treat as private, and that is relevant or responsive to this AD, it is important that you clearly designate the submitted comments as CBI. Please mark each page of your submission containing CBI as “PROPIN.” The FAA will treat such marked submissions as confidential under the FOIA, and they will not be placed in the public docket of this AD. Submissions containing CBI should be sent to Alexis Whitaker, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY. Any commentary that the FAA receives which is not specifically designated as CBI will be placed in the public docket for this rulemaking.</P>
                <HD SOURCE="HD1">Background</HD>
                <P>EASA, which is the Technical Agent for the Member States of the European Union, has issued EASA AD 2025-0009, dated January 10, 2025 (EASA AD 2025-0009) (also referred to as “the MCAI”), to correct an unsafe condition on Airbus Helicopters Model H160-B helicopters. The MCAI states that occurrences were reported where difficulty was experienced when applying the jettisoning function of the windows. The MCAI also states that subsequent investigation revealed that, in some occurrences, the effort needed to move the locking fingers from the locking position may be too high.</P>
                <P>
                    The FAA is issuing this AD to prevent the failure of the jettisoning function of the window. The unsafe condition, if not addressed, could result in the inability to evacuate helicopter occupants during an emergency situation.
                    <PRTPAGE P="16078"/>
                </P>
                <P>
                    You may examine the MCAI in the AD docket at 
                    <E T="03">regulations.gov</E>
                     under Docket No. FAA-2025-0620.
                </P>
                <HD SOURCE="HD1">Material Incorporated by Reference Under 1 CFR Part 51</HD>
                <P>The FAA reviewed EASA AD 2025-0009, which specifies procedures for repetitive lubrication of the locking fingers on the jettisonable window systems, performing an operational test of the windows after each lubrication, and taking corrective actions in accordance with the manufacturer's instructions. EASA AD 2025-0009 also allows installing affected parts on any helicopter provided that before installation the part is lubricated and tested.</P>
                <P>
                    This material is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the 
                    <E T="02">ADDRESSES</E>
                     section.
                </P>
                <HD SOURCE="HD1">FAA's Determination</HD>
                <P>These products have been approved by the aviation authority of another country and are approved for operation in the United States. Pursuant to the FAA's bilateral agreement with this State of Design Authority, it has notified the FAA about the unsafe condition described in the MCAI. The FAA is issuing this AD after determining that the unsafe condition described previously is likely to exist or develop on other products of this same type design.</P>
                <HD SOURCE="HD1">AD Requirements</HD>
                <P>This AD requires accomplishing the actions specified in EASA AD 2025-0009, described previously, as incorporated by reference, except for any differences identified as exceptions in the regulatory text of this AD.</P>
                <HD SOURCE="HD1">Explanation of Required Compliance Information</HD>
                <P>
                    In the FAA's ongoing efforts to improve the efficiency of the AD process, the FAA developed a process to use some civil aviation authority (CAA) ADs as the primary source of information for compliance with requirements for corresponding FAA ADs. The FAA has been coordinating this process with manufacturers and CAAs. As a result, EASA AD 2025-0009 is incorporated by reference in this AD. This AD requires compliance with EASA AD 2025-0009 in its entirety through that incorporation, except for any differences identified as exceptions in the regulatory text of this AD. Material required by EASA AD 2025-0009 for compliance will be available at 
                    <E T="03">regulations.gov</E>
                     under Docket No. FAA-2025-0620 after this AD is published.
                </P>
                <HD SOURCE="HD1">Differences Between This AD and the MCAI</HD>
                <P>Where EASA AD 2025-0009 specifies contacting Airbus Helicopters for applicable corrective actions and instructions after performing an operational test, this AD requires using a repair method approved by the FAA, EASA, or Airbus Helicopters' EASA Design Organization Approval.</P>
                <P>Where EASA AD 2025-0009 applies to all Model H160-B helicopters, this AD applies to Model H160-B helicopters with certain jettisonable windows and parts installed.</P>
                <P>Where EASA AD 2025-0009 defines an affected part as a part identified in the original and any future revision of Airbus Helicopters Alert Service Bulletin H160-05-00-0001, this AD lists the affected parts by name and part number. The affected parts listed in this AD are the same as those identified in Airbus Helicopters Alert Service Bulletin ASB H160-05-00-0001, Issue 001, dated January 9, 2025.</P>
                <P>Where EASA AD 2025-0009 prohibits installing an affected part unless it has been lubricated and tested in accordance with the service information, this AD does not contain that prohibition. Since this AD applies to helicopters with an affected part installed, the lubrication and testing would already be required should an affected part be installed on the helicopter at a later time.</P>
                <HD SOURCE="HD1">Justification for Immediate Adoption and Determination of the Effective Date</HD>
                <P>
                    Section 553(b) of the Administrative Procedure Act (APA) (5 U.S.C. 551 
                    <E T="03">et seq.</E>
                    ) authorizes agencies to dispense with notice and comment procedures for rules when the agency, for “good cause,” finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” Under this section, an agency, upon finding good cause, may issue a final rule without providing notice and seeking comment prior to issuance. Further, section 553(d) of the APA authorizes agencies to make rules effective in less than thirty days, upon a finding of good cause.
                </P>
                <P>An unsafe condition exists that requires the immediate adoption of this AD without providing an opportunity for public comments prior to adoption. The FAA has found that the risk to the flying public justifies forgoing notice and comment prior to adoption of this rule because the jettison windows are part of the emergency evacuation system, and if the jettison windows do not properly open, a decrease in evacuation time could occur. Additionally, the initial actions required by this AD must be accomplished within 3 months, which is shorter than the time necessary for the public to comment and for publication of the final rule. Accordingly, notice and opportunity for prior public comment are impracticable and contrary to the public interest pursuant to 5 U.S.C. 553(b).</P>
                <P>In addition, the FAA finds that good cause exists pursuant to 5 U.S.C. 553(d) for making this amendment effective in less than 30 days, for the same reasons the FAA found good cause to forgo notice and comment.</P>
                <HD SOURCE="HD1">Regulatory Flexibility Act</HD>
                <P>The requirements of the Regulatory Flexibility Act (RFA) do not apply when an agency finds good cause pursuant to 5 U.S.C. 553 to adopt a rule without prior notice and comment. Because the FAA has determined that it has good cause to adopt this rule without prior notice and comment, RFA analysis is not required.</P>
                <HD SOURCE="HD1">Costs of Compliance</HD>
                <P>The FAA estimates that this AD affects nine helicopters of U.S. registry. Labor rates are estimated at $85 per hour. Based on these numbers, the FAA estimates that operators may incur the following costs to comply with this AD.</P>
                <GPOTABLE COLS="5" OPTS="L2,nj,i1" CDEF="s65,r50,10,xs66,xs66">
                    <TTITLE>Estimated Costs</TTITLE>
                    <BOXHD>
                        <CHED H="1">Action</CHED>
                        <CHED H="1">Labor cost</CHED>
                        <CHED H="1">Parts cost</CHED>
                        <CHED H="1">Cost per product</CHED>
                        <CHED H="1">
                            Cost on U.S.
                            <LI>operators</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Lubrication of the locking fingers on each jettisonable window</ENT>
                        <ENT>3 work-hours × $85 per hour = $255 per cycle</ENT>
                        <ENT>$0</ENT>
                        <ENT>$255 per cycle</ENT>
                        <ENT>$2,295 per cycle.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Operational tests of the jettisonable window</ENT>
                        <ENT>3 work-hours × $85 per hour = $255 per cycle</ENT>
                        <ENT>0</ENT>
                        <ENT>$255 per cycle</ENT>
                        <ENT>$2,295 per cycle.</ENT>
                    </ROW>
                </GPOTABLE>
                <PRTPAGE P="16079"/>
                <P>The repairs needed as a result of failing the operational tests could vary significantly from helicopter to helicopter. The FAA has no way of determining the costs to accomplish the repairs or the number of helicopters that may require repair.</P>
                <HD SOURCE="HD1">Authority for This Rulemaking</HD>
                <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII: Aviation Programs describes in more detail the scope of the Agency's authority.</P>
                <P>The FAA is issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701: General requirements. Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
                <HD SOURCE="HD1">Regulatory Findings</HD>
                <P>This AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
                <P>For the reasons discussed above, I certify that this AD:</P>
                <P>(1) Is not a “significant regulatory action” under Executive Order 12866, and</P>
                <P>(2) Will not affect intrastate aviation in Alaska.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
                    <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
                </LSTSUB>
                <HD SOURCE="HD1">The Amendment</HD>
                <P>Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
                </PART>
                <REGTEXT TITLE="14" PART="39">
                    <AMDPAR>1. The authority citation for part 39 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>49 U.S.C. 106(g), 40113, 44701.</P>
                    </AUTH>
                </REGTEXT>
                <SECTION>
                    <SECTNO>§ 39.13</SECTNO>
                    <SUBJECT>[Amended]</SUBJECT>
                </SECTION>
                <REGTEXT TITLE="14" PART="39">
                    <AMDPAR>2. The FAA amends § 39.13 by adding the following new airworthiness directive:</AMDPAR>
                    <EXTRACT>
                        <FP SOURCE="FP-2">
                            <E T="04">2025-08-02 Airbus Helicopters:</E>
                             Amendment 39-23015; Docket No. FAA-2025-0620; Project Identifier MCAI-2025-00020-R.
                        </FP>
                        <HD SOURCE="HD1">(a) Effective Date</HD>
                        <P>This airworthiness directive (AD) is effective May 2, 2025.</P>
                        <HD SOURCE="HD1">(b) Affected ADs</HD>
                        <P>None.</P>
                        <HD SOURCE="HD1">(c) Applicability</HD>
                        <P>This AD applies to Airbus Helicopters Model H160-B helicopters, certificated in any category, with a part listed in table 1 to paragraph (c) of this AD installed.</P>
                        <GPOTABLE COLS="3" OPTS="L2,nj,i1" CDEF="s100,r50,r50">
                            <TTITLE>
                                Table 1 to Paragraph (
                                <E T="01">c</E>
                                )
                            </TTITLE>
                            <BOXHD>
                                <CHED H="1">Part</CHED>
                                <CHED H="1">Manufacturer part No.</CHED>
                                <CHED H="1">Airbus helicopters part No.</CHED>
                            </BOXHD>
                            <ROW>
                                <ENT I="01">Pilot jettisonable window</ENT>
                                <ENT>045-14405-990</ENT>
                                <ENT>U522A10T1006.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">Co-pilot jettisonable window</ENT>
                                <ENT>045-14402-990</ENT>
                                <ENT>U522A20T1008.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">Left-hand (LH) intermediate jettisonable window</ENT>
                                <ENT>045-14400-990</ENT>
                                <ENT>U522A60T1006.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">LH Sliding door jettisonable window</ENT>
                                <ENT>045-14401-990</ENT>
                                <ENT>U522A40T1006.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">Right-hand (RH) intermediate jettisonable window</ENT>
                                <ENT>045-14403-990</ENT>
                                <ENT>U522A50T1006.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">RH Sliding door jettisonable window</ENT>
                                <ENT>045-14404-990</ENT>
                                <ENT>U522A30T1008.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">LH intermediate jettisonable window tinted glass</ENT>
                                <ENT>045-14774-990</ENT>
                                <ENT>U522A60T1007.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">LH sliding door jettisonable window tinted glass</ENT>
                                <ENT>045-14775-990</ENT>
                                <ENT>U522A40T1007.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">RH intermediate jettisonable window tinted glass</ENT>
                                <ENT>045-14776-990</ENT>
                                <ENT>U522A50T1007.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">RH sliding door jettisonable window tinted glass</ENT>
                                <ENT>045-14777-990</ENT>
                                <ENT>U522A30T1009.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">LH intermediate emergency exit assembly</ENT>
                                <ENT>Not applicable</ENT>
                                <ENT>U522A2142101.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">LH hinge door emergency exit assembly</ENT>
                                <ENT>Not applicable</ENT>
                                <ENT>U522A2122101.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">RH intermediate emergency exit assembly</ENT>
                                <ENT>Not applicable</ENT>
                                <ENT>U522A2132101.</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">RH hinge door emergency exit assembly</ENT>
                                <ENT>Not applicable</ENT>
                                <ENT>U522A2112101.</ENT>
                            </ROW>
                        </GPOTABLE>
                        <HD SOURCE="HD1">(d) Subject</HD>
                        <P>Joint Aircraft System Component (JASC) Code 5220, Emergency exits.</P>
                        <HD SOURCE="HD1">(e) Unsafe Condition</HD>
                        <P>This AD was prompted by reports of difficulty moving the locking fingers when applying the jettisoning function of the windows. The FAA is issuing this AD to prevent the failure of the jettisoning of the window. The unsafe condition, if not addressed, could result in the inability to evacuate helicopter occupants during an emergency situation.</P>
                        <HD SOURCE="HD1">(f) Compliance</HD>
                        <P>Comply with this AD within the compliance times specified, unless already done.</P>
                        <HD SOURCE="HD1">(g) Requirements</HD>
                        <P>Except as specified in paragraphs (h) and (i) of this AD: Comply with all required actions and compliance times specified in, and in accordance with, European Union Aviation Safety Agency AD 2025-0009, dated January 10, 2025 (EASA AD 2025-0009).</P>
                        <HD SOURCE="HD1">(h) Exceptions to EASA AD 2025-0009</HD>
                        <P>(1) Where EASA AD 2025-0009 defines “affected part,” this AD defines an affected part as a part listed in table 1 to paragraph (c) of this AD.</P>
                        <P>(2) Where EASA AD 2025-0009 requires compliance in terms of flight hours, this AD requires using hours time-in-service.</P>
                        <P>(3) Where EASA AD 2025-0009 refers to its effective date, this AD requires using the effective date of this AD.</P>
                        <P>(4) Where EASA AD 2025-0009 specifies contacting Airbus Helicopters for applicable corrective actions and instructions after performing an operational test, this AD requires using a repair method approved by the Manager, International Validation Branch, FAA; or EASA; or Airbus Helicopters' EASA Design Organization Approval (DOA). If approved by the DOA, the approval must include the DOA-authorized signature.</P>
                        <P>(5) This AD does not require paragraph (4) of EASA AD 2025-009.</P>
                        <P>(6) This AD does not adopt the “Remarks” section of EASA AD 2025-0009.</P>
                        <HD SOURCE="HD1">(i) No Reporting Requirement</HD>
                        <P>
                            Although the material referenced in EASA AD 2025-0009 specifies to submit certain information to the manufacturer, this AD does not require that action.
                            <PRTPAGE P="16080"/>
                        </P>
                        <HD SOURCE="HD1">(j) Alternative Methods of Compliance (AMOCs)</HD>
                        <P>
                            (1) The Manager, International Validation Branch, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the manager of the International Validation Branch, send it to the attention of the person identified in paragraph (k) of this AD and email to: 
                            <E T="03">AMOC@faa.gov.</E>
                        </P>
                        <P>(2) Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local Flight Standards District Office/certificate holding district office.</P>
                        <HD SOURCE="HD1">(k) Additional information</HD>
                        <P>
                            For more information about this AD, contact Alexis Whitaker, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY; phone: (516) 228-7309; email: 
                            <E T="03">alexis.j.whitaker@faa.gov.</E>
                        </P>
                        <HD SOURCE="HD1">(l) Material Incorporated by Reference</HD>
                        <P>(1) The Director of the Federal Register approved the incorporation by reference of the material listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.</P>
                        <P>(2) You must use this material as applicable to do the actions required by this AD, unless the AD specifies otherwise.</P>
                        <P>(i) European Union Aviation Safety Agency (EASA) AD 2025-0009, dated January 10, 2025.</P>
                        <P>(ii) [Reserved]</P>
                        <P>
                            (3) For EASA material identified in this AD, contact EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; phone: +49 221 8999 000; email: 
                            <E T="03">ADs@easa.europa.eu;</E>
                             website: 
                            <E T="03">easa.europa.eu.</E>
                             You may find the EASA material on the EASA website at 
                            <E T="03">ad.easa.europa.eu.</E>
                        </P>
                        <P>(4) You may view this material at the FAA, Office of the Regional Counsel, Southwest Region, 10101 Hillwood Parkway, Room 6N-321, Fort Worth, TX 76177. For information on the availability of this material at the FAA, call (817) 222-5110.</P>
                        <P>
                            (5) You may view this material at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, visit 
                            <E T="03">www.archives.gov/federal-register/cfr/ibr-locations</E>
                             or email 
                            <E T="03">fr.inspection@nara.gov</E>
                            .
                        </P>
                    </EXTRACT>
                </REGTEXT>
                <SIG>
                    <DATED>Issued on April 9, 2025.</DATED>
                    <NAME>Paul R. Bernado,</NAME>
                    <TITLE>Acting Director, Compliance &amp; Airworthiness Division, Aircraft Certification Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06560 Filed 4-14-25; 11:15 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 39</CFR>
                <DEPDOC>[Docket No. FAA-2025-0622; Project Identifier MCAI-2023-00875-R; Amendment 39-23016; AD 2025-08-03]</DEPDOC>
                <RIN>RIN 2120-AA64</RIN>
                <SUBJECT>Airworthiness Directives; Airbus Helicopters</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The FAA is adopting a new airworthiness directive (AD) for all Airbus Helicopters Model AS332L2 helicopters. This AD was prompted by a determination that new or more restrictive airworthiness limitations are necessary. This AD requires revising the airworthiness limitations section (ALS) of the existing maintenance manual (MM) or instructions for continued airworthiness (ICAs) and the existing approved maintenance or inspection program, as applicable, as specified in a European Union Aviation Safety Agency (EASA) AD, which is incorporated by reference. The FAA is issuing this AD to address the unsafe condition on these products.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This AD is effective May 2, 2025.</P>
                    <P>The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of May 2, 2025.</P>
                    <P>The FAA must receive comments on this AD by June 2, 2025.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">regulations.gov.</E>
                         Follow the instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Fax:</E>
                         (202) 493-2251.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery:</E>
                         Deliver to Mail address above between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        <E T="03">AD Docket:</E>
                         You may examine the AD docket at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2025-0622; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this final rule, the mandatory continuing airworthiness information (MCAI), any comments received, and other information. The street address for Docket Operations is listed above.
                    </P>
                    <P>
                        <E T="03">Material Incorporated by Reference:</E>
                    </P>
                    <P>
                        • For EASA material identified in this AD, contact EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; phone: +49 221 8999 000; email: 
                        <E T="03">ADs@easa.europa.eu;</E>
                         website: 
                        <E T="03">easa.europa.eu.</E>
                         You may find the EASA material on the EASA website at 
                        <E T="03">ad.easa.europa.eu.</E>
                    </P>
                    <P>
                        • You may view this material at the FAA, Office of the Regional Counsel, Southwest Region, 10101 Hillwood Parkway, Room 6N 321, Fort Worth, TX 76177. For information on the availability of this material at the FAA, call (817) 222-5110. It is also available at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2025-0622.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Adam Hein, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; phone: (316) 946-4116; email: 
                        <E T="03">Adam.Hein@faa.gov</E>
                        .
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Comments Invited</HD>
                <P>
                    The FAA invites you to send any written data, views, or arguments about this final rule. Send your comments to an address listed under the 
                    <E T="02">ADDRESSES</E>
                     section. Include “Docket No. FAA-2025-0622; Project Identifier MCAI-2023-00875-R” at the beginning of your comments. The most helpful comments reference a specific portion of the final rule, explain the reason for any recommended change, and include supporting data. The FAA will consider all comments received by the closing date and may amend this final rule because of those comments.
                </P>
                <P>
                    Except for Confidential Business Information (CBI) as described in the following paragraph, and other information as described in 14 CFR 11.35, the FAA will post all comments received, without change, to 
                    <E T="03">regulations.gov,</E>
                     including any personal information you provide. The agency will also post a report summarizing each substantive verbal contact received about this final rule.
                </P>
                <HD SOURCE="HD1">Confidential Business Information</HD>
                <P>
                    CBI is commercial or financial information that is both customarily and actually treated as private by its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public disclosure. If your comments responsive to this AD contain commercial or financial information that is customarily treated as private, that you actually treat as private, and that is relevant or responsive to this AD, 
                    <PRTPAGE P="16081"/>
                    it is important that you clearly designate the submitted comments as CBI. Please mark each page of your submission containing CBI as “PROPIN.” The FAA will treat such marked submissions as confidential under the FOIA, and they will not be placed in the public docket of this AD. Submissions containing CBI should be sent to Adam Hein, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590. Any commentary that the FAA receives that is not specifically designated as CBI will be placed in the public docket for this rulemaking.
                </P>
                <HD SOURCE="HD1">Background</HD>
                <P>EASA, which is the Technical Agent for the Member States of the European Union, has issued EASA AD 2023-0140, dated July 14, 2023 (EASA AD 2023-0140) (also referred to as the MCAI), to correct an unsafe condition on Airbus Helicopters Model AS 332 L2 helicopters. The MCAI states that new or more restrictive airworthiness limitations have been developed. EASA advises that airworthiness limitations and certification maintenance instructions are identified as mandatory for continued airworthiness and that Revision 10 of AH [Airbus Helicopters] AS 332 L2 ALS, dated March 30, 2022, has been issued to specify all service life limits and maintenance tasks for AS 332 L2 helicopters and separate the airworthiness limitations from the Master Servicing Manual (M.S.M.). The FAA is issuing this AD to prevent a failure of critical parts and primary structural components, which, if not addressed, could result in loss of control of the helicopter.</P>
                <P>
                    You may examine the MCAI in the AD docket at 
                    <E T="03">regulations.gov</E>
                     under Docket No. FAA-2025-0622.
                </P>
                <HD SOURCE="HD1">Material Incorporated by Reference Under 1 CFR Part 51</HD>
                <P>The FAA reviewed EASA AD 2023-0140, which specifies replacing components before exceeding their life limits and accomplishing all applicable maintenance tasks within thresholds and intervals specified in the ALS as defined in EASA AD 2023-0140. Depending on the results of the maintenance tasks, EASA AD 2023-0140 specifies accomplishing corrective action(s) or contacting AH [Airbus Helicopters] for approved instructions and accomplishing those instructions.</P>
                <P>Additionally, EASA AD 2023-0140 specifies revising the Aircraft Maintenance Programme (AMP) by incorporating the limitations, tasks, and associated thresholds and intervals described in the specified ALS as applicable. Revising the AMP constitutes terminating action for the requirement to record accomplishment of the actions of replacing components before exceeding their life limits and accomplishing maintenance tasks within thresholds and intervals specified in the applicable ALS as specified in EASA AD 2023-0140 for demonstration of AD compliance on a continued basis.</P>
                <P>
                    This material is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the 
                    <E T="02">ADDRESSES</E>
                     section.
                </P>
                <HD SOURCE="HD1">FAA's Determination</HD>
                <P>These products have been approved by the aviation authority of another country and are approved for operation in the United States. Pursuant to the FAA's bilateral agreement with this State of Design Authority, it has notified the FAA of the unsafe condition described in the MCAI referenced above. The FAA is issuing this AD after determining that the unsafe condition described previously is likely to exist or develop on other products of the same type design.</P>
                <HD SOURCE="HD1">AD Requirements</HD>
                <P>This AD requires the actions specified in EASA AD 2023-0140, described previously, as incorporated by reference, except for any differences identified as exceptions in the regulatory text of this AD.</P>
                <HD SOURCE="HD1">Explanation of Required Compliance Information</HD>
                <P>
                    In the FAA's ongoing efforts to improve the efficiency of the AD process, the FAA developed a process to use some civil aviation authority (CAA) ADs as the primary source of information for compliance with requirements for corresponding FAA ADs. The FAA has been coordinating this process with manufacturers and CAAs. As a result, the FAA incorporates EASA AD 2023-0140 by reference in the FAA final rule. This AD, therefore, requires compliance with EASA AD 2023-0140 in its entirety through that incorporation, except for any differences identified as exceptions in the regulatory text of this AD. Using common terms that are the same as the heading of a particular section in EASA AD 2023-0140 does not mean that operators need comply only with that section. For example, where the AD requirement refers to “all required actions and compliance times,” compliance with this AD requirement is not limited to the section titled “Required Action(s) and Compliance Time(s)” in EASA AD 2023-0140. Material referenced in EASA AD 2023-0140 for compliance will be available at 
                    <E T="03">regulations.gov</E>
                     under Docket No. FAA-2025-0622 after the FAA final rule is published.
                </P>
                <HD SOURCE="HD1">Justification for Immediate Adoption and Determination of the Effective Date</HD>
                <P>
                    Section 553(b) of the Administrative Procedure Act (APA) (5 U.S.C. 551 
                    <E T="03">et seq.</E>
                    ) authorizes agencies to dispense with notice and comment procedures for rules when the agency, for “good cause,” finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” Under this section, an agency, upon finding good cause, may issue a final rule without providing notice and seeking comment prior to issuance. Further, section 553(d) of the APA authorizes agencies to make rules effective in less than thirty days, upon a finding of good cause.
                </P>
                <P>There are currently no domestic operators of these products. Accordingly, notice and opportunity for prior public comment are unnecessary, pursuant to 5 U.S.C. 553(b). In addition, for the foregoing reasons, the FAA finds that good cause exists pursuant to 5 U.S.C. 553(d) for making this amendment effective in less than 30 days.</P>
                <HD SOURCE="HD1">Regulatory Flexibility Act</HD>
                <P>The requirements of the Regulatory Flexibility Act (RFA) do not apply when an agency finds good cause pursuant to 5 U.S.C. 553 to adopt a rule without prior notice and comment. Because the FAA has determined that it has good cause to adopt this rule without prior notice and comment, RFA analysis is not required.</P>
                <HD SOURCE="HD1">Costs of Compliance</HD>
                <P>There are no costs of compliance with this AD because there are no helicopters with this type certificate on the U.S. Registry.</P>
                <HD SOURCE="HD1">Authority for This Rulemaking</HD>
                <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII: Aviation Programs describes in more detail the scope of the Agency's authority.</P>
                <P>
                    The FAA is issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701: General requirements. Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds 
                    <PRTPAGE P="16082"/>
                    necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.
                </P>
                <HD SOURCE="HD1">Regulatory Findings</HD>
                <P>This AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
                <P>For the reasons discussed above, I certify that this AD:</P>
                <P>(1) Is not a “significant regulatory action” under Executive Order 12866, and</P>
                <P>(2) Will not affect intrastate aviation in Alaska.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
                    <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
                </LSTSUB>
                <HD SOURCE="HD1">The Amendment</HD>
                <P>Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
                </PART>
                <REGTEXT TITLE="14" PART="39">
                    <AMDPAR>1. The authority citation for part 39 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>49 U.S.C. 106(g), 40113, 44701.</P>
                    </AUTH>
                </REGTEXT>
                <SECTION>
                    <SECTNO>§ 39.13</SECTNO>
                    <SUBJECT>[Amended]</SUBJECT>
                </SECTION>
                <REGTEXT TITLE="14" PART="39">
                    <AMDPAR>2. The FAA amends § 39.13 by adding the following new airworthiness directive:</AMDPAR>
                    <EXTRACT>
                        <FP SOURCE="FP-2">
                            <E T="04">2025-08-03 Airbus Helicopters:</E>
                             Amendment 39-23016; Docket No. FAA-2025-0622; Project Identifier MCAI-2023-00875-R.
                        </FP>
                        <HD SOURCE="HD1">(a) Effective Date</HD>
                        <P>This airworthiness directive (AD) is effective May 2, 2025.</P>
                        <HD SOURCE="HD1">(b) Affected ADs</HD>
                        <P>None.</P>
                        <HD SOURCE="HD1">(c) Applicability</HD>
                        <P>This AD applies to Airbus Helicopters Model AS332L2 helicopters, certificated in any category.</P>
                        <HD SOURCE="HD1">(d) Subject</HD>
                        <P>Air Transport Association (ATA) of America Code 05, Time Limits/Maintenance Checks.</P>
                        <HD SOURCE="HD1">(e) Unsafe Condition</HD>
                        <P>This AD was prompted by new or more restrictive airworthiness limitations. The FAA is issuing this AD to prevent failure of critical parts and primary structural components, which if not addressed, could result in loss of control of the helicopter.</P>
                        <HD SOURCE="HD1">(f) Compliance</HD>
                        <P>Comply with this AD within the compliance times specified, unless already done.</P>
                        <HD SOURCE="HD1">(g) Required Action</HD>
                        <P>Except as specified in paragraphs (h) and (i) of this AD: Comply with all required actions and compliance times specified in, and in accordance with, European Union Aviation Safety Agency AD 2023-0140, dated July 14, 2023 (EASA AD 2023-0140).</P>
                        <HD SOURCE="HD1">(h) Exceptions to EASA AD 2023-0140</HD>
                        <P>(1) Where EASA AD 2023-0140 refers to its effective date, this AD requires using the effective date of this AD.</P>
                        <P>(2) This AD does not adopt paragraphs (1), (2), (4), and (5) of EASA AD 2023-0140.</P>
                        <P>(3) Where paragraph (3) of EASA AD 2023-0140 specifies “Within 12 months after the effective date of this AD, revise the approved AMP,” this AD requires replacing that text with “Within 30 days after the effective date of this AD, revise the airworthiness limitations section of your existing maintenance manual or instructions for continued airworthiness and the existing approved maintenance or inspection program, as applicable.”</P>
                        <P>(4) The initial compliance time for doing the tasks specified in paragraph (3) of EASA AD 2023-0140 is on or before the applicable “limitations” and “associated thresholds” as incorporated by the requirements of paragraph (3) of EASA AD 2023-0140 or within 30 days after the effective date of this AD, whichever occurs later.</P>
                        <P>(5) This AD does not adopt the “Remarks” section of EASA AD 2023-0140.</P>
                        <HD SOURCE="HD1">(i) Provisions for Alternative Actions and Intervals</HD>
                        <P>After the action required by paragraph (g) of this AD has been done, no alternative actions and associated thresholds and intervals, including life limits, are allowed unless they are approved as specified in the provisions of the “Ref. Publications” section of EASA AD 2023-0140.</P>
                        <HD SOURCE="HD1">(j) Alternative Methods of Compliance (AMOCs)</HD>
                        <P>
                            (1) The Manager, International Validation Branch, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the manager of the International Validation Branch, send it to the attention of the person identified in paragraph (k) of this AD and email to: 
                            <E T="03">AMOC@faa.gov.</E>
                        </P>
                        <P>(2) Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/certificate holding district office.</P>
                        <HD SOURCE="HD1">(k) Additional Information</HD>
                        <P>
                            For more information about this AD, contact Adam Hein, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; phone: (316) 946-4116; email: 
                            <E T="03">Adam.Hein@faa.gov.</E>
                        </P>
                        <HD SOURCE="HD1">(l) Material Incorporated by Reference</HD>
                        <P>(1) The Director of the Federal Register approved the incorporation by reference of the material listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.</P>
                        <P>(2) You must use this material as applicable to do the actions required by this AD, unless the AD specifies otherwise.</P>
                        <P>(i) European Union Aviation Safety Agency (EASA) AD 2023-0140, dated July 14, 2023.</P>
                        <P>(ii) [Reserved]</P>
                        <P>
                            (3) For EASA material identified in this AD, contact EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; phone: +49 221 8999 000; email: 
                            <E T="03">ADs@easa.europa.eu;</E>
                             website: 
                            <E T="03">easa.europa.eu.</E>
                             You may find the EASA material on the EASA website at 
                            <E T="03">ad.easa.europa.eu.</E>
                        </P>
                        <P>(4) You may view this material at the FAA, Office of the Regional Counsel, Southwest Region, 10101 Hillwood Parkway, Room 6N-321, Fort Worth, TX 76177. For information on the availability of this material at the FAA, call (817) 222 5110.</P>
                        <P>
                            (5) You may view this material at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, visit 
                            <E T="03">www.archives.gov/federal-register/cfr/ibr-locations</E>
                             or email 
                            <E T="03">fr.inspection@nara.gov</E>
                            .
                        </P>
                    </EXTRACT>
                </REGTEXT>
                <SIG>
                    <DATED>Issued on April 9, 2025.</DATED>
                    <NAME>Paul R. Bernado,</NAME>
                    <TITLE>Acting Director, Compliance &amp; Airworthiness Division, Aircraft Certification Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06558 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 39</CFR>
                <DEPDOC>[Docket No. FAA-2025-0623; Project Identifier MCAI-2023-00878-R; Amendment 39-23017; AD 2025-08-04]</DEPDOC>
                <RIN>RIN 2120-AA64</RIN>
                <SUBJECT>Airworthiness Directives; Airbus Helicopters</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The FAA is adopting a new airworthiness directive (AD) for all Airbus Helicopters Model AS332L helicopters. This AD was prompted by a determination that new or more restrictive airworthiness limitations are necessary. This AD requires revising the airworthiness limitations section (ALS) of the existing maintenance manual 
                        <PRTPAGE P="16083"/>
                        (MM) or instructions for continued airworthiness (ICAs) and the existing approved maintenance or inspection program, as applicable, as specified in a European Union Aviation Safety Agency (EASA) AD, which is incorporated by reference. The FAA is issuing this AD to address the unsafe condition on these products.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This AD is effective May 2, 2025.</P>
                    <P>The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of May 2, 2025.</P>
                    <P>The FAA must receive comments on this AD by June 2, 2025.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may send comments, using the procedures found in 14 CFR 11.43 and 11.45, by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">regulations.gov</E>
                        . Follow the instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Fax:</E>
                         (202) 493-2251.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         U.S. Department of Transportation, Docket Operations, M-30, West Building Ground Floor, Room W12-140, 1200 New Jersey Avenue SE, Washington, DC 20590.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery:</E>
                         Deliver to Mail address above between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        <E T="03">AD Docket:</E>
                         You may examine the AD docket at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2025-0623; or in person at Docket Operations between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. The AD docket contains this final rule, the mandatory continuing airworthiness information (MCAI), any comments received, and other information. The street address for Docket Operations is listed above.
                    </P>
                    <P>
                        <E T="03">Material Incorporated by Reference:</E>
                    </P>
                    <P>
                        • For EASA material identified in this AD, contact EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; phone: +49 221 8999 000; email: 
                        <E T="03">ADs@easa.europa.eu;</E>
                         website: 
                        <E T="03">easa.europa.eu.</E>
                         You may find the EASA material on the EASA website at 
                        <E T="03">ad.easa.europa.eu.</E>
                    </P>
                    <P>
                        • You may view this material at the FAA, Office of the Regional Counsel, Southwest Region, 10101 Hillwood Parkway, Room 6N 321, Fort Worth, TX 76177. For information on the availability of this material at the FAA, call (817) 222-5110. It is also available at 
                        <E T="03">regulations.gov</E>
                         under Docket No. FAA-2025-0623.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Adam Hein, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; phone: (316) 946-4116; email: 
                        <E T="03">Adam.Hein@faa.gov</E>
                        .
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Comments Invited</HD>
                <P>
                    The FAA invites you to send any written data, views, or arguments about this final rule. Send your comments to an address listed under the 
                    <E T="02">ADDRESSES</E>
                     section. Include “Docket No. FAA-2025-0623; Project Identifier MCAI-2023-00878-R” at the beginning of your comments. The most helpful comments reference a specific portion of the final rule, explain the reason for any recommended change, and include supporting data. The FAA will consider all comments received by the closing date and may amend this final rule because of those comments.
                </P>
                <P>
                    Except for Confidential Business Information (CBI) as described in the following paragraph, and other information as described in 14 CFR 11.35, the FAA will post all comments received, without change, to 
                    <E T="03">regulations.gov</E>
                    , including any personal information you provide. The agency will also post a report summarizing each substantive verbal contact received about this final rule.
                </P>
                <HD SOURCE="HD1">Confidential Business Information</HD>
                <P>CBI is commercial or financial information that is both customarily and actually treated as private by its owner. Under the Freedom of Information Act (FOIA) (5 U.S.C. 552), CBI is exempt from public disclosure. If your comments responsive to this AD contain commercial or financial information that is customarily treated as private, that you actually treat as private, and that is relevant or responsive to this AD, it is important that you clearly designate the submitted comments as CBI. Please mark each page of your submission containing CBI as “PROPIN.” The FAA will treat such marked submissions as confidential under the FOIA, and they will not be placed in the public docket of this AD. Submissions containing CBI should be sent to Adam Hein, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590. Any commentary that the FAA receives which is not specifically designated as CBI will be placed in the public docket for this rulemaking.</P>
                <HD SOURCE="HD1">Background</HD>
                <P>EASA, which is the Technical Agent for the Member States of the European Union, has issued EASA AD 2023-0143, dated July 14, 2023 (EASA AD 2023-0143) (also referred to as the MCAI), to correct an unsafe condition on Airbus Helicopters Model AS 332 L helicopters. The MCAI states that new or more restrictive airworthiness limitations have been developed. EASA advises that airworthiness limitations and certification maintenance instructions are identified as mandatory for continued airworthiness and that Revision 9 of AH [Airbus Helicopters] AS 332 L ALS, dated July 27, 2022, has been issued to specify all service life limits and maintenance tasks for AS 332 L helicopters and separate the airworthiness limitations from the Master Servicing Manual (M.S.M.). The FAA is issuing this AD to prevent a failure of critical parts and primary structural components, which if not addressed could result in loss of control of the helicopter.</P>
                <P>
                    You may examine the MCAI in the AD docket at 
                    <E T="03">regulations.gov</E>
                     under Docket No. FAA-2025-0623.
                </P>
                <HD SOURCE="HD1">Material Incorporated by Reference Under 1 CFR Part 51</HD>
                <P>The FAA reviewed EASA AD 2023-0143, which specifies replacing components before exceeding their life limits and accomplishing all applicable maintenance tasks within thresholds and intervals specified in the ALS as defined in EASA AD 2023-0143. Depending on the results of the maintenance tasks, EASA AD 2023-0143 specifies accomplishing corrective action(s) or contacting AH [Airbus Helicopters] for approved instructions and accomplishing those instructions.</P>
                <P>Additionally, EASA AD 2023-0143 specifies revising the Aircraft Maintenance Programme (AMP) by incorporating the limitations, tasks, and associated thresholds and intervals described in the specified ALS as applicable. Revising the AMP constitutes terminating action for the requirement to record accomplishment of the actions of replacing components before exceeding their life limits and accomplishing maintenance tasks within thresholds and intervals specified in the applicable ALS as defined in EASA AD 2023-0143 for demonstration of AD compliance on a continued basis.</P>
                <P>
                    This material is reasonably available because the interested parties have access to it through their normal course of business or by the means identified in the 
                    <E T="02">ADDRESSES</E>
                     section.
                </P>
                <HD SOURCE="HD1">FAA's Determination</HD>
                <P>
                    These products have been approved by the aviation authority of another country and are approved for operation in the United States. Pursuant to the FAA's bilateral agreement with this State of Design Authority, it has notified the FAA of the unsafe condition described in the MCAI referenced above. The FAA is issuing this AD after determining that the unsafe condition described previously is likely to exist or 
                    <PRTPAGE P="16084"/>
                    develop on other products of the same type design.
                </P>
                <HD SOURCE="HD1">AD Requirements</HD>
                <P>This AD requires the actions specified in EASA AD 2023-0143, described previously, as incorporated by reference, except for any differences identified as exceptions in the regulatory text of this AD.</P>
                <HD SOURCE="HD1">Explanation of Required Compliance Information</HD>
                <P>
                    In the FAA's ongoing efforts to improve the efficiency of the AD process, the FAA developed a process to use some civil aviation authority (CAA) ADs as the primary source of information for compliance with requirements for corresponding FAA ADs. The FAA has been coordinating this process with manufacturers and CAAs. As a result, the FAA incorporates EASA AD 2023-0143 by reference in the FAA final rule. This AD, therefore, requires compliance with EASA AD 2023-0143 in its entirety through that incorporation, except for any differences identified as exceptions in the regulatory text of this AD. Using common terms that are the same as the heading of a particular section in EASA AD 2023-0143 does not mean that operators need comply only with that section. For example, where the AD requirement refers to “all required actions and compliance times,” compliance with this AD requirement is not limited to the section titled “Required Action(s) and Compliance Time(s)” in EASA AD 2023-0143. Material referenced in EASA AD 2023-0143 for compliance will be available at 
                    <E T="03">regulations.gov</E>
                     under Docket No. FAA-2025-0623 after the FAA final rule is published.
                </P>
                <HD SOURCE="HD1">Justification for Immediate Adoption and Determination of the Effective Date</HD>
                <P>
                    Section 553(b) of the Administrative Procedure Act (APA) (5 U.S.C. 551 
                    <E T="03">et seq.</E>
                    ) authorizes agencies to dispense with notice and comment procedures for rules when the agency, for “good cause,” finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” Under this section, an agency, upon finding good cause, may issue a final rule without providing notice and seeking comment prior to issuance. Further, section 553(d) of the APA authorizes agencies to make rules effective in less than thirty days, upon a finding of good cause.
                </P>
                <P>There are currently no domestic operators of these products. Accordingly, notice and opportunity for prior public comment are unnecessary, pursuant to 5 U.S.C. 553(b). In addition, for the foregoing reasons, the FAA finds that good cause exists pursuant to 5 U.S.C. 553(d) for making this amendment effective in less than 30 days.</P>
                <HD SOURCE="HD1">Regulatory Flexibility Act</HD>
                <P>The requirements of the Regulatory Flexibility Act (RFA) do not apply when an agency finds good cause pursuant to 5 U.S.C. 553 to adopt a rule without prior notice and comment. Because the FAA has determined that it has good cause to adopt this rule without prior notice and comment, RFA analysis is not required.</P>
                <HD SOURCE="HD1">Costs of Compliance</HD>
                <P>There are no costs of compliance with this AD because there are no helicopters with this type certificate on the U.S. Registry.</P>
                <HD SOURCE="HD1">Authority for This Rulemaking</HD>
                <P>Title 49 of the United States Code specifies the FAA's authority to issue rules on aviation safety. Subtitle I, section 106, describes the authority of the FAA Administrator. Subtitle VII: Aviation Programs describes in more detail the scope of the Agency's authority.</P>
                <P>The FAA is issuing this rulemaking under the authority described in Subtitle VII, Part A, Subpart III, Section 44701: General requirements. Under that section, Congress charges the FAA with promoting safe flight of civil aircraft in air commerce by prescribing regulations for practices, methods, and procedures the Administrator finds necessary for safety in air commerce. This regulation is within the scope of that authority because it addresses an unsafe condition that is likely to exist or develop on products identified in this rulemaking action.</P>
                <HD SOURCE="HD1">Regulatory Findings</HD>
                <P>This AD will not have federalism implications under Executive Order 13132. This AD will not have a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government.</P>
                <P>For the reasons discussed above, I certify that this AD:</P>
                <P>(1) Is not a “significant regulatory action” under Executive Order 12866, and</P>
                <P>(2) Will not affect intrastate aviation in Alaska.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 14 CFR Part 39</HD>
                    <P>Air transportation, Aircraft, Aviation safety, Incorporation by reference, Safety.</P>
                </LSTSUB>
                <HD SOURCE="HD1">The Amendment</HD>
                <P>Accordingly, under the authority delegated to me by the Administrator, the FAA amends 14 CFR part 39 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 39—AIRWORTHINESS DIRECTIVES</HD>
                </PART>
                <REGTEXT TITLE="14" PART="29">
                    <AMDPAR>1. The authority citation for part 39 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>49 U.S.C. 106(g), 40113, 44701.</P>
                    </AUTH>
                </REGTEXT>
                <SECTION>
                    <SECTNO>§ 39.13</SECTNO>
                    <SUBJECT>[Amended]</SUBJECT>
                </SECTION>
                <REGTEXT TITLE="14" PART="39">
                    <AMDPAR>2. The FAA amends § 39.13 by adding the following new airworthiness directive:</AMDPAR>
                    <EXTRACT>
                        <FP SOURCE="FP-2">
                            <E T="04">2025-08-04 Airbus Helicopters:</E>
                             Amendment 39-23017; Docket No. FAA-2025-0623; Project Identifier MCAI-2023-00878-R.
                        </FP>
                        <HD SOURCE="HD1">(a) Effective Date</HD>
                        <P>This airworthiness directive (AD) is effective May 2, 2025.</P>
                        <HD SOURCE="HD1">(b) Affected ADs</HD>
                        <P>None.</P>
                        <HD SOURCE="HD1">(c) Applicability</HD>
                        <P>This AD applies to Airbus Helicopters Model AS332L helicopters, certificated in any category.</P>
                        <HD SOURCE="HD1">(d) Subject</HD>
                        <P>Air Transport Association (ATA) of America Code 05, Time Limits/Maintenance Checks.</P>
                        <HD SOURCE="HD1">(e) Unsafe Condition</HD>
                        <P>This AD was prompted by new or more restrictive airworthiness limitations. The FAA is issuing this AD to prevent failure of critical parts and primary structural components, which, if not addressed, could result in loss of control of the helicopter.</P>
                        <HD SOURCE="HD1">(f) Compliance</HD>
                        <P>Comply with this AD within the compliance times specified, unless already done.</P>
                        <HD SOURCE="HD1">(g) Required Action</HD>
                        <P>Except as specified in paragraphs (h) and (i) of this AD: Comply with all required actions and compliance times specified in, and in accordance with, European Union Aviation Safety Agency AD 2023-0143, dated July 14, 2023 (EASA AD 2023-0143).</P>
                        <HD SOURCE="HD1">(h) Exceptions to EASA AD 2023-0143</HD>
                        <P>(1) Where EASA AD 2023-0143 refers to its effective date, this AD requires using the effective date of this AD.</P>
                        <P>(2) This AD does not adopt paragraphs (1), (2), (4), and (5) of EASA AD 2023-0143.</P>
                        <P>
                            (3) Where paragraph (3) of EASA AD 2023-0143 specifies “Within 12 months after the effective date of this AD, revise the approved AMP,” this AD requires replacing that text with “Within 30 days after the effective date of this AD, revise the airworthiness limitations section of your existing maintenance manual or instructions for 
                            <PRTPAGE P="16085"/>
                            continued airworthiness and the existing approved maintenance or inspection program, as applicable.”
                        </P>
                        <P>(4) The initial compliance time for doing the tasks specified in paragraph (3) of EASA AD 2023-0143 is on or before the applicable “limitations” and “associated thresholds” as incorporated by the requirements of paragraph (3) of EASA AD 2023-0143 or within 30 days after the effective date of this AD, whichever occurs later.</P>
                        <P>(5) This AD does not adopt the “Remarks” section of EASA AD 2023-0143.</P>
                        <HD SOURCE="HD1">(i) Provisions for Alternative Actions and Intervals</HD>
                        <P>After the action required by paragraph (g) of this AD has been done, no alternative actions and associated thresholds and intervals, including life limits, are allowed unless they are approved as specified in the provisions of the “Ref. Publications” section of EASA AD 2023-0143.</P>
                        <HD SOURCE="HD1">(j) Alternative Methods of Compliance (AMOCs)</HD>
                        <P>
                            (1) The Manager, International Validation Branch, FAA, has the authority to approve AMOCs for this AD, if requested using the procedures found in 14 CFR 39.19. In accordance with 14 CFR 39.19, send your request to your principal inspector or local Flight Standards District Office, as appropriate. If sending information directly to the manager of the International Validation Branch, send it to the attention of the person identified in paragraph (k) of this AD and email to: 
                            <E T="03">AMOC@faa.gov.</E>
                        </P>
                        <P>(2) Before using any approved AMOC, notify your appropriate principal inspector, or lacking a principal inspector, the manager of the local flight standards district office/certificate holding district office.</P>
                        <HD SOURCE="HD1">(k) Additional Information</HD>
                        <P>
                            For more information about this AD, contact Adam Hein, Aviation Safety Engineer, FAA, 1600 Stewart Avenue, Suite 410, Westbury, NY 11590; phone: (316) 946-4116; email: 
                            <E T="03">Adam.Hein@faa.gov.</E>
                        </P>
                        <HD SOURCE="HD1">(l) Material Incorporated by Reference</HD>
                        <P>(1) The Director of the Federal Register approved the incorporation by reference of the material listed in this paragraph under 5 U.S.C. 552(a) and 1 CFR part 51.</P>
                        <P>(2) You must use this material as applicable to do the actions required by this AD, unless the AD specifies otherwise.</P>
                        <P>(i) European Union Aviation Safety Agency (EASA) AD 2023-0143, dated July 14, 2023.</P>
                        <P>(ii) [Reserved]</P>
                        <P>
                            (3) For EASA material identified in this AD, contact EASA, Konrad-Adenauer-Ufer 3, 50668 Cologne, Germany; phone: +49 221 8999 000; email: 
                            <E T="03">ADs@easa.europa.eu;</E>
                             website: 
                            <E T="03">easa.europa.eu.</E>
                             You may find the EASA material on the EASA website at 
                            <E T="03">ad.easa.europa.eu.</E>
                        </P>
                        <P>(4) You may view this material at the FAA, Office of the Regional Counsel, Southwest Region, 10101 Hillwood Parkway, Room 6N-321, Fort Worth, TX 76177. For information on the availability of this material at the FAA, call (817) 222 5110.</P>
                        <P>
                            (5) You may view this material at the National Archives and Records Administration (NARA). For information on the availability of this material at NARA, visit 
                            <E T="03">www.archives.gov/federal-register/cfr/ibr-locations</E>
                             or email 
                            <E T="03">fr.inspection@nara.gov</E>
                            .
                        </P>
                    </EXTRACT>
                </REGTEXT>
                <SIG>
                    <DATED>Issued on April 9, 2025.</DATED>
                    <NAME>Paul R. Bernado,</NAME>
                    <TITLE>Acting Director, Compliance &amp; Airworthiness Division, Aircraft Certification Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06561 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</AGENCY>
                <CFR>24 CFR Parts 91, 92, 570, and 982</CFR>
                <DEPDOC>[Docket No. FR-6144-F-05]</DEPDOC>
                <RIN>RIN 2506-AC50</RIN>
                <SUBJECT>HOME Investment Partnerships Program: Program Updates and Streamlining—Delay of Effective Date, Withdrawal, and Correction</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Secretary, U.S. Department of Housing and Urban Development (HUD).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule; delay of effective date, withdrawal, and correction.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        On January 6, 2025, HUD published the HOME Investment Partnerships Program: Program Updates and Streamlining final rule (HOME Final Rule) in the 
                        <E T="04">Federal Register</E>
                        , which was scheduled to take effect on February 5, 2025. On February 3, 2025, HUD delayed the effective date of the HOME Final Rule until April 20, 2025, consistent with the President's January 20, 2025, memorandum titled “Regulatory Freeze Pending Review.” This publication announces that HUD is further delaying the effective or compliance dates for certain provisions of the HOME Final Rule. The provisions of the HOME Final Rule that are not further delayed by this publication are effective as of April 20, 2025.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>In this rule, amendatory instruction 2 is effective April 20, 2025, and amendatory instruction 3 is effective October 30, 2025. As of April 17, 2025, the effective date for amendatory instruction 27 (revising 24 CFR 92.253) in the HOME Final Rule published at 90 FR 746 (January 6, 2025), which was initially delayed at 90 FR 8780 (February 3, 2025), is further delayed until October 30, 2025. As of April 17, 2025, amendatory instruction 24 (amending 24 CFR 92.250) in the HOME Final Rule published at 90 FR 746 (January 6, 2025) is withdrawn. The corrections in this final rule to 24 CFR 92.3 are effective April 20, 2025.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Virginia Sardone, Director, Office of Affordable Housing Programs, Office of Community Planning and Development, U.S. Department of Housing and Urban Development, 451 7th Street SW, Room 7160, Washington, DC 20410; telephone number (202) 708-2684 (this is not a toll-free number). HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech or communication disabilities. To learn more about how to make an accessible telephone call, visit 
                        <E T="03">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">I. Background</HD>
                <P>
                    On January 6, 2025, HUD published the HOME Final Rule in the 
                    <E T="04">Federal Register</E>
                    .
                    <SU>1</SU>
                    <FTREF/>
                     The HOME Final Rule revises the HOME Investment Partnerships Program (HOME program) regulations to update, simplify, or streamline requirements, better align the program with other Federal housing programs, and implement recent amendments to the HOME program statute.
                    <SU>2</SU>
                    <FTREF/>
                     The HOME Final Rule also includes minor revisions to the regulations for the Community Development Block Grant and Section 8 Housing Choice Voucher Programs consistent with the changes to the HOME program. The HOME Final Rule provides for the rule to take effect on February 5, 2025.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         90 FR 746.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         The HOME program is authorized by title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 
                        <E T="03">et seq.</E>
                        ) and has been in operation since 1992.
                    </P>
                </FTNT>
                <P>
                    On January 20, 2025, the President issued a memorandum titled “Regulatory Freeze Pending Review” (the memorandum) to executive departments and agencies.
                    <SU>3</SU>
                    <FTREF/>
                     The memorandum, among other things, asks executive departments and agencies to consider postponing for 60 days from the date of the memorandum the effective date of rules that were published in the 
                    <E T="04">Federal Register</E>
                     but had not yet taken effect. This postponement allowed executive departments and agencies time to review any questions of fact, law, and policy that the rules may raise.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         Available at 90 FR 8249 (Jan. 28, 2025).
                    </P>
                </FTNT>
                <P>
                    Consistent with the memorandum, on February 3, 2025, HUD delayed the effective date of the HOME Final Rule from February 5, 2025, until April 20, 2025.
                    <SU>4</SU>
                    <FTREF/>
                     HUD's delay of the effective date of the HOME Final Rule until April 20, 2025, provided HUD with time to review the HOME Final Rule for any 
                    <PRTPAGE P="16086"/>
                    questions of fact, law, and policy that arise in the HOME Final Rule, as directed by the memorandum.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         HOME Investment Partnerships Program: Program Updates and Streamlining-Delay of Effective Date at 90 FR 8780.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Delay of Effective Date for Certain Provisions of the HOME Final Rule</HD>
                <P>
                    Consistent with the memorandum, HUD reviewed the HOME Final Rule for any questions of fact, law, and policy that arise in the HOME Final Rule. Pursuant to HUD's review of the HOME Final Rule and consistent with the memorandum, HUD has determined to further delay the effective date for certain provisions of the HOME Final Rule to allow HUD to seek further public comment on the provisions of the HOME Final Rule detailed in this publication. In addition, this publication makes changes to the HOME Final Rule's revisions to 24 CFR 92.3 to align with this delay of effective date for the indicated provisions of the HOME Final Rule. HUD will issue a separate 
                    <E T="04">Federal Register</E>
                     publication inviting public comment on the provisions of the HOME Final Rule detailed in this publication. The provisions of the HOME Final Rule that are not further delayed by this publication are effective as of April 20, 2025.
                </P>
                <HD SOURCE="HD2">The Certain Provisions of the HOME Final Rule With an Effective Date Further Delayed by This Publication</HD>
                <P>The effective date for the following HOME Final Rule provisions is delayed:</P>
                <HD SOURCE="HD3">1. 24 CFR 92.250—Maximum Per-Unit Subsidy Amount, Underwriting, and Subsidy Layering—Paragraph (c)</HD>
                <P>
                    The effective date for the addition of paragraph (c) to 24 CFR 92.250 is delayed until the date described in the 
                    <E T="02">DATES</E>
                     section of this publication. (Because part of an amendatory instruction cannot be delayed, HUD is withdrawing amendatory instruction 24 from the HOME Final Rule and setting out two separate instructions in this rule to: (1) revise paragraphs (a) and (b)(3)(i) and amend paragraph (b)(4) of 24 CFR 92.250, effective April 20, 2025; and (2) add paragraph (c) to 24 CFR 92.250, effective October 30, 2025.)
                </P>
                <HD SOURCE="HD3">2. 24 CFR 92.253—Tenant Protections and Selection</HD>
                <P>
                    The effective date for the HOME Final Rule's revisions to 24 CFR 92.253 is delayed until the date described in the 
                    <E T="02">DATES</E>
                     section of this publication.
                </P>
                <P>Notwithstanding this delay of the effective date for the HOME Final Rule's revisions to 24 CFR 92.253, HUD reminds owners that, pursuant to 42 U.S.C. 12755(b), they may terminate the tenancy or refuse to renew the tenancy of a person in HOME-assisted rental housing based on the grounds of a direct threat to the safety of the tenants or employees of the housing or an imminent and serious threat to the property, and owners are not required to provide 30 days' notice prior to the termination or refusal to renew where the action is in accordance with the requirements of State and local law and the requirements of 24 CFR part 92.</P>
                <HD SOURCE="HD2">Revisions to 24 CFR 92.3 To Align With the Delay of Effective Date of Certain Provisions of the HOME Final Rule</HD>
                <P>To account for the delay to the effective date from February 5, 2025, to April 20, 2025, HUD is making certain technical changes to update the compliance and effective dates listed in 24 CFR 92.3 of the HOME Final Rule. The changes to 24 CFR 92.3 of the HOME Final Rule are to clarify and revise the applicable effective and compliance dates described in that section. The compliance dates detailed in various paragraphs of 24 CFR 92.3 of the HOME Final Rule are being revised to April 20, 2026, to ensure participating jurisdictions have a 1-year compliance period, as originally described in the HOME Final Rule.</P>
                <HD SOURCE="HD2">Cross-References and Other Language Affected by the Delay of Certain Provisions of the HOME Final Rule</HD>
                <P>HUD recognizes that delaying the effective date of the certain provisions to the HOME Final Rule detailed in this publication will create inconsistencies in certain cross-references and other language in sections throughout 24 CFR parts 91 and 92. To the extent that such cross-references refer to tenant selection preferences in 24 CFR 92.253(e) or to the tenant protections contained in the tenancy addenda referenced in 24 CFR 92.253, these references shall be read to refer to the tenant selection preferences in 24 CFR 92.253(d) and to the lease requirements and tenant protections in 24 CFR 92.253 that are currently effective, respectively. HUD intends to correct these cross-references, where necessary, in a subsequent rulemaking.</P>
                <HD SOURCE="HD1">III. Application of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 to the HOME Program</HD>
                <P>HUD reminds HOME program recipients that grants must be administered in accordance with all applicable immigration restrictions and requirements, including the eligibility and verification requirements that apply under title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996, as amended (8 U.S.C. 1601-1646) (PRWORA) and any applicable requirements that HUD, the Attorney General, or the U.S. Citizenship and Immigrations Services may establish from time to time to comply with PRWORA.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 24 CFR Part 92</HD>
                    <P>Administrative practice and procedure, Low and moderate income housing, Manufactured homes, Rent subsidies, Reporting and recordkeeping requirements.</P>
                </LSTSUB>
                <HD SOURCE="HD1">Correction</HD>
                <P>In FR Doc. 2024-29824, published January 6, 2025, at 90 FR 746, the following corrections are made:</P>
                <SECTION>
                    <SECTNO>§ 92.3</SECTNO>
                    <SUBJECT>[Corrected]</SUBJECT>
                </SECTION>
                <REGTEXT TITLE="24" PART="92">
                    <AMDPAR>1. Starting on page 865, in the second column, in amendatory instruction 6 for § 92.3:</AMDPAR>
                    <AMDPAR>a. Remove the date “February 4, 2025”, wherever it appears, and add, in its place, the date “April 19, 2025”;</AMDPAR>
                    <AMDPAR>b. Remove the date “February 5, 2025”, wherever it appears, and add, in its place, the date “April 20, 2025”; and</AMDPAR>
                    <AMDPAR>c. Remove the date “February 5, 2026”, wherever it appears, and add, in its place, the date “April 20, 2026”.</AMDPAR>
                </REGTEXT>
                <P>For the reasons set out in the preamble, HUD amends 24 CFR part 92 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 92—HOME INVESTMENT PARTNERSHIPS PROGRAM</HD>
                </PART>
                <REGTEXT TITLE="24" PART="92">
                    <AMDPAR>1. The authority citation for part 92 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P> 42 U.S.C. 3535(d) and 12701-12839, 12 U.S.C. 1701x.</P>
                    </AUTH>
                    <AMDPAR>2. Effective April 20, 2025, amend § 92.250 by:</AMDPAR>
                    <AMDPAR>a. Revising paragraphs (a) and (b)(3)(i); and</AMDPAR>
                    <AMDPAR>b. Removing the words “downpayment assistance” and in their place adding the words “homeownership assistance” in paragraph (b)(4).</AMDPAR>
                    <P>The revisions read as follows:</P>
                    <SECTION>
                        <SECTNO>§ 92.250</SECTNO>
                        <SUBJECT>Maximum per-unit subsidy amount, underwriting, and subsidy layering.</SUBJECT>
                        <P>
                            (a) 
                            <E T="03">Maximum per-unit subsidy amount.</E>
                             The total amount of HOME funds that a participating jurisdiction may invest on a per-unit basis in affordable housing may not exceed the per-unit dollar limits established by HUD in accordance with section 212(e) of the Act. HUD will publish the per-unit dollar limits for the area in which the housing is located annually. HUD will publish its methodology for determining maximum per-unit dollar limits through a publication in the 
                            <E T="04">Federal Register</E>
                             with the opportunity for comment.
                            <PRTPAGE P="16087"/>
                        </P>
                        <P>(b) * * *</P>
                        <P>(3) * * *</P>
                        <P>(i) An underwriting analysis of the homeowner's ability to repay the HOME-funded rehabilitation loan is required only if the loan is an amortizing loan; and</P>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
                <REGTEXT TITLE="24" PART="92">
                    <AMDPAR>3. Effective October 30, 2025, further amend § 92.250 by adding paragraph (c) to read as follows:</AMDPAR>
                    <SECTION>
                        <SECTNO>§ 92.250</SECTNO>
                        <SUBJECT>Maximum per-unit subsidy amount, underwriting, and subsidy layering.</SUBJECT>
                        <STARS/>
                        <P>
                            (c) 
                            <E T="03">Green building standards.</E>
                             A participating jurisdiction may exceed the per-unit dollar limits described in paragraph (a) of this section by up to 10 percent if the project meets one of the green building standards identified by HUD and published in the 
                            <E T="04">Federal Register</E>
                            .
                        </P>
                    </SECTION>
                </REGTEXT>
                <SIG>
                    <NAME>Scott Turner,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06492 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4210-67-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Coast Guard</SUBAGY>
                <CFR>33 CFR Part 117</CFR>
                <DEPDOC>[Docket No. USCG-2024-1091]</DEPDOC>
                <RIN>RIN 1625-AA09</RIN>
                <SUBJECT>Drawbridge Operation Regulation; Passaic River, Harrison, New Jersey</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Coast Guard, DHS.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Coast Guard is removing the existing drawbridge operation regulation for the AMTRAK Dock Railroad Bridge, mile 5.0 across the Passaic River, Harrison, New Jersey. On December 11, 2024, the U.S. Coast Guard issued a permit amendment for the AMTRAK Dock Bridge which authorized the conversion of the bridge from a movable bridge to a fixed bridge. The operating regulation for the bridge, is no longer applicable or necessary and will be removed from the CFR.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This rule is effective April 17, 2025.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        To view documents mentioned in this preamble as being available in the docket, go to 
                        <E T="03">https://www.regulations.gov.</E>
                         Type the docket number (USCG-2024-1091) in the “SEARCH” box and click “SEARCH”. In the Document Type column, select “Supporting &amp; Related Material.”
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        If you have questions on this rule, call or email Ms. Donna. D. Leoce, Project Officer, First Coast Guard District, telephone, (571) 513-2471, or email 
                        <E T="03">Donna.D.Leoce@uscg.mil.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">I. Table of Abbreviations</HD>
                <EXTRACT>
                    <FP SOURCE="FP-1">CFR Code of Federal Regulations</FP>
                    <FP SOURCE="FP-1">DHS Department of Homeland Security</FP>
                    <FP SOURCE="FP-1">FR Federal Register</FP>
                    <FP SOURCE="FP-1">Pub. L. Public Law</FP>
                    <FP SOURCE="FP-1">§ Section </FP>
                    <FP SOURCE="FP-1">U.S.C. United States Code</FP>
                </EXTRACT>
                <HD SOURCE="HD1">II. Background Information and Regulatory History</HD>
                <P>The Coast Guard is issuing this final rule without prior notice and opportunity to comment pursuant to authority under section 4(a) of the Administrative Procedure Act (APA) (5 U.S.C. 553(b)). This provision authorizes an agency to issue a rule without prior notice and opportunity to comment when the agency for good cause finds that those procedures are “impracticable, unnecessary, or contrary to the public interest.” Under 5 U.S.C. 553(b), the Coast Guard finds that good cause exists for not publishing a notice of proposed rulemaking (NPRM) with respect to this rule because it is unnecessary. The Coast Guard determined that the AMTRAK Dock Railroad Drawbridge meets the needs of navigation on the Passaic River in the closed position and permitted it as a fixed bridge on December 11, 2024. Therefore, the regulation under 33 CFR 117.739(e) is no longer applicable and shall be removed from publication. It is unnecessary to publish an NPRM because this regulatory action does not place any restrictions on the public or mariners but rather removes a restriction that has no further use or value. This rule will not have any effect on the waterway users or land users of the bridge.</P>
                <P>
                    Under 5 U.S.C. 553(d)(3), the Coast Guard finds that good cause exists for making this rule effective in less than 30 days after publication in the 
                    <E T="04">Federal Register</E>
                    . The modification of the bridge from a moveable to fixed bridge was authorized by the U.S. Coast Guard on December 11, 2024, (Permit D01-4-24-1-Dock Bridge-Passaic River, New Jersey) and renovations are currently taking place. The removal of the regulation regarding an inapplicable operating schedule therefore will have no effect on mariners currently operating on this waterway. This rule merely requires an administrative change to the 
                    <E T="04">Federal Register</E>
                    , in order to omit a regulatory requirement that is no longer applicable or necessary. Therefore, a delayed effective date is unnecessary and impracticable.
                </P>
                <HD SOURCE="HD1">III. Legal Authority and Need for Rule</HD>
                <P>The Coast Guard is issuing this rule under 33 U.S.C. 499.</P>
                <P>The purpose of this rule is to remove paragraph (e) of 33 CFR 117.739 that refers to the AMTRAK Dock Bridge at mile 5.0, from the Code of Federal Regulations since it governs a bridge that will no longer abiding by an operating schedule.</P>
                <HD SOURCE="HD1">IV. Discussion of Final Rule</HD>
                <P>The Coast Guard is removing the regulation in 33 CFR 117.739(e) related to the draw operations for this bridge because it is no longer a drawbridge that opens. The change removes the section of the regulation governing the AMTRAK Dock Railroad Bridge since the bridge has been permitted as a fixed bridge that will remain in a closed position. This Final Rule seeks to update the Code of Federal Regulations by removing language that governs the operation of the AMTRAK Dock Railroad Bridge, which no longer will be a drawbridge. This regulatory change does not affect waterway or land traffic as the permit regarding the conversion to a fixed bridge has already been approved.</P>
                <HD SOURCE="HD1">V. Regulatory Analyses</HD>
                <P>We developed the removal of this regulation/rule after considering numerous statutes and Executive Orders related to rulemaking. Below we summarize our analyses based on a number of these statutes and Executive Orders.</P>
                <HD SOURCE="HD2">A. Regulatory Planning and Review</HD>
                <P>Executive Orders 12866 and 13563 direct agencies to assess the costs and benefits of available regulatory alternatives and, if regulation is necessary, to select regulatory approaches that maximize net benefits. This rule has not been designated a “significant regulatory action,” under section 3(f) of Executive Order 12866. Accordingly, it has not been reviewed by the Office of Management and Budget (OMB).</P>
                <P>
                    This regulatory determination is based on the fact that the moveable bridge has been permitted as a fixed bridge and can no longer operate as a drawbridge. Removal of the operating schedule from 33 CFR part 117, subpart B will have no effect on the movement of waterway or land traffic.
                    <PRTPAGE P="16088"/>
                </P>
                <HD SOURCE="HD2">B. Impact on Small Entities</HD>
                <P>The Regulatory Flexibility Act of 1980 (RFA), 5 U.S.C. 601-612, as amended, requires Federal agencies to consider the potential impact of regulations on small entities during rulemaking. The term “small entities” comprises small businesses, not-for-profit organizations that are independently owned and operated and are not dominant in their fields, and governmental jurisdictions with populations of less than 50,000. The Coast Guard certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities.</P>
                <P>While some owners or operators of vessels intending to transit the bridge may be small entities, for the reasons stated in section V.A above this final rule would not have a significant economic impact on any vessel owner or operator.</P>
                <P>
                    Under section 213(a) of the Small Business Regulatory Enforcement Fairness Act of 1996 (Pub. L. 104-121), we want to assist small entities in understanding this rule. If the rule would affect your small business, organization, or governmental jurisdiction and you have questions concerning its provisions or options for compliance, please contact the person listed in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section.
                </P>
                <P>Small businesses may send comments on the actions of Federal employees who enforce, or otherwise determine compliance with, Federal regulations to the Small Business and Agriculture Regulatory Enforcement Ombudsman and the Regional Small Business Regulatory Fairness Boards. The Ombudsman evaluates these actions annually and rates each agency's responsiveness to small business. If you wish to comment on actions by employees of the Coast Guard, call 1-888-REG-FAIR (1-888-734-3247). The Coast Guard will not retaliate against small entities that question or complain about this rule or any policy or action of the Coast Guard.</P>
                <HD SOURCE="HD2">C. Collection of Information</HD>
                <P>This rule calls for no new collection of information under the Paperwork Reduction Act of 1995 (44 U.S.C. 3501-3520).</P>
                <HD SOURCE="HD2">D. Federalism and Indian Tribal Government</HD>
                <P>A rule has implications for federalism under Executive Order 13132, Federalism, if it has a substantial direct effect on the States, on the relationship between the national government and the States, or on the distribution of power and responsibilities among the various levels of government. We have analyzed this rule under that Order and have determined that it is consistent with the fundamental federalism principles and preemption requirements described in Executive Order 13132.</P>
                <P>Also, this rule does not have Tribal implications under Executive Order 13175, Consultation and Coordination with Indian Tribal Governments, because it does not have a substantial direct effect on one or more Indian tribes, on the relationship between the Federal Government and Indian tribes, or on the distribution of power and responsibilities between the Federal Government and Indian tribes.</P>
                <HD SOURCE="HD2">E. Unfunded Mandates Reform Act</HD>
                <P>The Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1531-1538) requires Federal agencies to assess the effects of their discretionary regulatory actions. In particular, the Act addresses actions that may result in the expenditure by a State, local, or Tribal government, in the aggregate, or by the private sector of $100,000,000 (adjusted for inflation) or more in any one year. Though this rule will not result in such an expenditure, we do discuss the effects of this rule elsewhere in this preamble.</P>
                <HD SOURCE="HD2">F. Environment</HD>
                <P>We have analyzed this rule under Department of Homeland Security Management Directive 023-01, Rev.1, associated implementing instructions, and Environmental Planning Policy COMDTINST 5090.1 (series) which guide the Coast Guard in complying with the National Environmental Policy Act of 1969 (NEPA) (42 U.S.C. 4321-4370f). The Coast Guard has determined that this action is one of a category of actions that do not individually or cumulatively have a significant effect on the human environment. This rule promulgates the operating regulations or procedures for drawbridges and is categorically excluded from further review, under paragraph L49, of Appendix A, Table 1 of DHS Instruction Manual 023-01-001-01, Rev. 1.</P>
                <P>Neither a Record of Environmental Consideration nor a Memorandum for the Record are required for this rule.</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 33 CFR Part 117</HD>
                    <P>Bridges.</P>
                </LSTSUB>
                <P>For the reasons discussed in the preamble, the Coast Guard amends 33 CFR part 117 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 117—DRAWBRIDGE OPERATION REGULATIONS</HD>
                </PART>
                <REGTEXT TITLE="33" PART="117">
                    <AMDPAR>1. The authority citation for part 117 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>33 U.S.C. 499; 33 CFR 1.05-1; and DHS Delegation No. 00170.1, Revision No. 01.3.</P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT>
                    <SECTION>
                        <SECTNO>§ 117.739</SECTNO>
                        <SUBJECT>[Amended]</SUBJECT>
                    </SECTION>
                    <AMDPAR>2. Amend § 117.739 as follows:</AMDPAR>
                    <AMDPAR>a. Remove paragraph (e);</AMDPAR>
                    <AMDPAR>b. Redesignate paragraphs (f) through (n) as (e) through (m), respectively; and</AMDPAR>
                    <AMDPAR>c. Remove reserved paragraphs (o) through (s).</AMDPAR>
                </REGTEXT>
                <SIG>
                    <NAME>M.E. Platt,</NAME>
                    <TITLE>Rear Admiral, U.S. Coast Guard, Commander, First Coast Guard District.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06394 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-04-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <CFR>40 CFR Part 52</CFR>
                <DEPDOC>[EPA-R05-OAR-2023-0493; FRL-12089-02-R5]</DEPDOC>
                <SUBJECT>Air Plan Approval; Ohio; Volatile Organic Compounds</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Final rule.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Environmental Protection Agency (EPA) is approving a September 28, 2023, State Implementation Plan (SIP) submittal from the Ohio Environmental Protection Agency (Ohio EPA). The SIP submittal consists of a source-specific volatile organic compound (VOC) limitation for a flexographic printing line cold cleaner at the Valgroup company's plastic extrusion plant in Findlay, Ohio. The source-specific limitation reflects the technological differences between the facility's new control unit and cold cleaner requirements currently established in Ohio's SIP. Ohio EPA has determined that the source-specific VOC limitation for the cold cleaner is more stringent than existing cold cleaner limits in the Ohio SIP. EPA proposed to approve this action on October 7, 2024, and received no adverse comments.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This final rule is effective on May 19, 2025.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        EPA has established a docket for this action under Docket ID No. EPA-R05-OAR-2023-0493. All documents in the docket are listed on the 
                        <E T="03">https://www.regulations.gov</E>
                         website. Although listed in the index, some information is not publicly 
                        <PRTPAGE P="16089"/>
                        available, 
                        <E T="03">i.e.,</E>
                         Confidential Business Information (CBI), Proprietary Business Information (PBI), or other information whose disclosure is restricted by statute. Certain other material, such as copyrighted material, is not placed on the internet and will be publicly available only in hard copy form. Publicly available docket materials are available either through 
                        <E T="03">https://www.regulations.gov</E>
                         or at the Environmental Protection Agency, Region 5, Air and Radiation Division, 77 West Jackson Boulevard, Chicago, Illinois 60604. This facility is open from 8:30 a.m. to 4:30 p.m., Monday through Friday, excluding Federal holidays. We recommend that you telephone Anthony Maietta at (312) 353-8777 before visiting the Region 5 office.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Anthony Maietta, Air and Radiation Division (AR-18J), Environmental Protection Agency, Region 5, 77 West Jackson Boulevard, Chicago, Illinois 60604, (312) 353-8777, 
                        <E T="03">maietta.anthony@epa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Throughout this document whenever “we,” “us,” or “our” is used, we mean EPA.</P>
                <HD SOURCE="HD1">I. Background Information</HD>
                <P>On October 7, 2024 (89 FR 81036), EPA proposed to approve a source-specific VOC limitation consisting of the addition of paragraphs C.2.b)(1), C.2.b)(1)d., C.2.b)(2), C.2.b)(2)d., C.2.d), C.2.d)(1), C.2.e), and C.2.e)(2) as listed in the July 18, 2023, permit-to-install for the Valgroup company into the Ohio SIP. An explanation of the Clean Air Act (CAA) requirements, a detailed analysis of the revisions, and EPA's reasons for proposing approval were provided in the notice of proposed rulemaking and will not be restated here. The public comment period for this proposed rule ended on November 6, 2024. EPA received one supportive comment from a citizen. The comment is included in the docket for this action. Therefore, we are finalizing our action as proposed.</P>
                <HD SOURCE="HD1">II. What action is EPA taking?</HD>
                <P>EPA is approving into the Ohio SIP the addition of paragraphs C.2.b)(1), C.2.b)(1)d., C.2.b)(2), C.2.b)(2)d., C.2.d), C.2.d)(1), C.2.e), and C.2.e)(2) of the final permit-to-install, permit number P0133504, issued on July 18, 2023, to the Valgroup company.</P>
                <HD SOURCE="HD1">III. Incorporation by Reference</HD>
                <P>
                    In this rule, EPA is finalizing regulatory text that includes incorporation by reference. In accordance with requirements of 1 CFR 51.5, EPA is finalizing the incorporation by reference of the Ohio Regulations described in section II of this preamble and set forth in the amendments to 40 CFR part 52 below. EPA has made, and will continue to make, these documents generally available through 
                    <E T="03">https://www.regulations.gov,</E>
                     and at the EPA Region 5 Office (please contact the person identified in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section of this preamble for more information). Therefore, these materials have been approved by EPA for inclusion in the SIP, have been incorporated by reference by EPA into that plan, are fully federally enforceable under sections 110 and 113 of the CAA as of the effective date of the final rulemaking of EPA's approval, and will be incorporated by reference in the next update to the SIP compilation.
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         62 FR 27968 (May 22, 1997).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Statutory and Executive Order Reviews</HD>
                <P>Under the CAA, the Administrator is required to approve a SIP submission that complies with the provisions of the CAA and applicable Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in reviewing SIP submissions, EPA's role is to approve state choices, provided that they meet the criteria of the CAA. Accordingly, this action merely approves state law as meeting Federal requirements and does not impose additional requirements beyond those imposed by state law. For that reason, this action:</P>
                <P>• Is not a significant regulatory action subject to review by the Office of Management and Budget under Executive Order 12866 (58 FR 51735, October 4, 1993);</P>
                <P>
                    • Does not impose an information collection burden under the provisions of the Paperwork Reduction Act (44 U.S.C. 3501 
                    <E T="03">et seq.</E>
                    );
                </P>
                <P>
                    • Is certified as not having a significant economic impact on a substantial number of small entities under the Regulatory Flexibility Act (5 U.S.C. 601 
                    <E T="03">et seq.</E>
                    );
                </P>
                <P>• Does not contain any unfunded mandate or significantly or uniquely affect small governments, as described in the Unfunded Mandates Reform Act of 1995 (Pub. L. 104-4);</P>
                <P>• Does not have federalism implications as specified in Executive Order 13132 (64 FR 43255, August 10, 1999);</P>
                <P>• Is not subject to Executive Order 13045 (62 FR 19885, April 23, 1997) because it approves a state program;</P>
                <P>• Is not a significant regulatory action subject to Executive Order 13211 (66 FR 28355, May 22, 2001); and</P>
                <P>• Is not subject to requirements of section 12(d) of the National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 note) because application of those requirements would be inconsistent with the CAA.</P>
                <P>In addition, the SIP is not approved to apply on any Indian reservation land or in any other area where EPA or an Indian Tribe has demonstrated that a Tribe has jurisdiction. In those areas of Indian country, the rule does not have Tribal implications and will not impose substantial direct costs on Tribal governments or preempt Tribal law as specified by Executive Order 13175 (65 FR 67249, November 9, 2000).</P>
                <P>This action is subject to the Congressional Review Act, and EPA will submit a rule report to each House of the Congress and to the Comptroller General of the United States. This action is not a “major rule” as defined by 5 U.S.C. 804(2).</P>
                <P>Under section 307(b)(1) of the CAA, petitions for judicial review of this action must be filed in the United States Court of Appeals for the appropriate circuit by June 16, 2025. Filing a petition for reconsideration by the Administrator of this final rule does not affect the finality of this action for the purposes of judicial review nor does it extend the time within which a petition for judicial review may be filed, and shall not postpone the effectiveness of such rule or action. This action may not be challenged later in proceedings to enforce its requirements. (See section 307(b)(2).)</P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects in 40 CFR Part 52</HD>
                    <P>Environmental protection, Air pollution control, Incorporation by reference, Intergovernmental relations, Ozone, Reporting and recordkeeping requirements, Volatile organic compounds.</P>
                </LSTSUB>
                <SIG>
                    <DATED>Dated: April 7, 2025.</DATED>
                    <NAME>Cheryl Newton,</NAME>
                    <TITLE>Acting Regional Administrator, Region 5.</TITLE>
                </SIG>
                <P>For the reasons stated in the preamble, title 40 CFR part 52 is amended as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 52—APPROVAL AND PROMULGATION OF IMPLEMENTATION PLANS</HD>
                </PART>
                <REGTEXT TITLE="40" PART="52">
                    <AMDPAR>1. The authority citation for part 52 continues to read as follows:</AMDPAR>
                    <AUTH>
                        <HD SOURCE="HED">Authority:</HD>
                        <P>
                             42 U.S.C. 7401 
                            <E T="03">et seq.</E>
                        </P>
                    </AUTH>
                </REGTEXT>
                <REGTEXT TITLE="40" PART="52">
                    <AMDPAR>2. In § 52.1870, the table in paragraph (d) is amended by adding an entry for “Valgroup” after the entry for “United Ready Mix” to read as follows:</AMDPAR>
                    <SECTION>
                        <PRTPAGE P="16090"/>
                        <SECTNO>§ 52.1870</SECTNO>
                        <SUBJECT>Identification of plan.</SUBJECT>
                        <STARS/>
                        <P>(d) * * *</P>
                        <GPOTABLE COLS="5" OPTS="L1,nj,i1" CDEF="xs60,10,12,r50,r75">
                            <TTITLE>EPA-Approved Ohio Source-Specific Provisions</TTITLE>
                            <BOXHD>
                                <CHED H="1">Name of source</CHED>
                                <CHED H="1">No.</CHED>
                                <CHED H="1">Ohio effective date</CHED>
                                <CHED H="1">EPA aproval date</CHED>
                                <CHED H="1">Comments</CHED>
                            </BOXHD>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="01">Valgroup</ENT>
                                <ENT>P0133504</ENT>
                                <ENT>7/18/2023</ENT>
                                <ENT>
                                    4/17/2025, 90 FR [Insert 
                                    <E T="02">Federal Register</E>
                                     page where the document begins]
                                </ENT>
                                <ENT>Only paragraphs C.2.b)(1), C.2.b)(1)d., C.2.b)(2), C.2.b)(2)d., C.2.d), C.2.d)(1), C.2.e), and C.2.e)(2).</ENT>
                            </ROW>
                            <ROW>
                                <ENT I="22"> </ENT>
                            </ROW>
                            <ROW>
                                <ENT I="28">*         *         *         *         *         *         *</ENT>
                            </ROW>
                        </GPOTABLE>
                        <STARS/>
                    </SECTION>
                </REGTEXT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06604 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 660</CFR>
                <DEPDOC>[Docket No. 240514-0137; RTID 0648-XE832]</DEPDOC>
                <SUBJECT>Fisheries Off West Coast States; Modification of the West Coast Salmon Fisheries; Inseason Action #19</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Inseason modification of 2024-2025 management measures.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>NMFS announces one inseason action for the 2025 portion of the 2024-2025 ocean salmon fishery season. This inseason action modifies the commercial salmon fisheries in the area from Humbug Mountain, Oregon, to the Oregon/California border.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The effective date for this inseason action is set out in this document under the heading “Inseason Action” and the action remains in effect until superseded or modified.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Anna Heeter, (971) 361-8895, 
                        <E T="03">Anna.Heeter@noaa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    The annual management measures for the 2024-2025 ocean salmon fisheries (89 FR 44553, May 21, 2024; 89 FR 53529, June 27, 2024) govern the commercial and recreational fisheries in the area from the United States/Canada border to the United States/Mexico border, effective from 0001 hours Pacific Daylight Time (PDT), May 16, 2024, until the effective date of the 2025-2026 management measures, as published in the 
                    <E T="04">Federal Register</E>
                    . These measures include early season fisheries in March through mid-May of 2025 that may be adjusted through inseason action when abundance forecasts for 2025 salmon returns become available. NMFS is authorized to implement inseason management actions to modify fishing seasons, catch limits, and quotas as necessary to provide fishing opportunities while meeting management objectives for the affected species (50 CFR 660.409). Inseason actions in the salmon fishery may be taken directly by NMFS (50 CFR 660.409(a)—Fixed inseason management provisions) or upon consultation with the Chairman of the Pacific Fishery Management Council (Council), and the appropriate State Directors (50 CFR 660.409(b)—Flexible inseason management provisions).
                </P>
                <P>Management of the salmon fisheries is divided into two geographic areas: north of Cape Falcon (United States/Canada border to Cape Falcon, OR) and south of Cape Falcon (SOF) (Cape Falcon, OR, to the United States/Mexico border). The actions described in this document affect the SOF commercial salmon fishery, as set out under the heading Inseason Action below.</P>
                <P>Consultation with the Council Chairman and representatives for the appropriate State Directors on these inseason actions occurred on April 7, 2025. This consultation included representatives from NMFS, Oregon Department of Fish and Wildlife, and California Department of Fish and Wildlife. Representatives from the Salmon Advisory Subpanel and the Salmon Technical Team (STT) were also present.</P>
                <P>This inseason action was announced on NMFS' telephone hotline and U.S. Coast Guard radio broadcast when the action became effective. (50 CFR 660.411(a)(2)).</P>
                <HD SOURCE="HD1">Inseason Actions</HD>
                <HD SOURCE="HD2">Inseason Action #19</HD>
                <P>
                    <E T="03">Description of the action:</E>
                     Inseason action #19 closes the ocean salmon troll commercial fishery from Humbug Mountain, OR, to the Oregon/California border.
                </P>
                <P>
                    <E T="03">Effective dates:</E>
                     Inseason action #19 takes effect on May 1, 2025, at 12:01 a.m. and remains in effect until May 15, 2025 at 11:59 p.m. or until superseded.
                </P>
                <P>
                    <E T="03">Reason and authorization:</E>
                     At the March 4-11, 2025, Council meeting, NMFS took inseason action (90 FR 13840, March 27, 2025) to close the commercial salmon troll fishery in the area between Humbug Mountain and the Oregon/California border from March 25, 2025, through April 14, 2025. No inseason action was taken to close the area between Humbug Mountain and the Oregon/California border from April 15, 2025 through April 30, 2025. The fishery will open as scheduled from April 15, 2025 through April 30, 2025 before this inseason closes the fishery on May 1, 2025. Based on the STT's report on the stock abundance forecasts for 2025 for salmon stocks managed under the Pacific Coast Salmon Fishery Management Plan (FMP), the SOF ocean salmon fisheries will be constrained in 2025 by the very low abundance forecasts for Klamath River fall-run Chinook (KRFC) salmon and Sacramento River fall-run Chinook (SRFC) salmon. Taking inseason action to manage and conserve SOF ocean salmon fishery impacts through closure or shortened fisheries in this area will reserve the impacts on KRFC and SRFC salmon stocks potentially allowing more flexibility in decisions to be made at the April 9-15, 2025 Council meeting about the main 2025 season that is scheduled to begin May 16, 2025.
                </P>
                <P>
                    The NMFS West Coast Regional Administrator (RA) considered the 2025 abundance forecasts for KRFC and SRFC salmon stocks and the projected impacts in the ocean salmon fisheries, as modeled by the STT, and determined 
                    <PRTPAGE P="16091"/>
                    that the inseason action described below is necessary to meet management and conservation goals. This inseason action modifies landing and possession limits, quotas and/or fishing seasons under 50 CFR 660.409(b)(1)(i).
                </P>
                <P>All other restrictions and regulations remain in effect as announced for the 2024-2025 ocean salmon fisheries (89 FR 44553, May 21, 2024; 89 FR 53529, June 27, 2024; 89 FR 61355, July 31, 2024; 89 FR 104895, December 26, 2024; 90 FR 13840, March 27, 2025) except as previously modified by inseason actions.</P>
                <P>As provided by the inseason notice procedures at 50 CFR 660.411, actual notice of the described regulatory actions was given, prior to the time the actions became effective, by telephone hotline numbers 206-526-6667 and 800-662-9825, and by U.S. Coast Guard Notice to Mariners broadcasts on Channel 16 VHF-FM and 2182 kHz.</P>
                <HD SOURCE="HD1">Classification</HD>
                <P>NMFS issues this action pursuant to section 305(d) of the MSA. This action is authorized by 50 CFR 660.409, which was issued pursuant to section 304(b) of the MSA, and is exempt from review under Executive Order 12866.</P>
                <P>Pursuant to 5 U.S.C. 553(b)(3)(B), there is good cause to waive prior notice and an opportunity for public comment on this action, as notice and comment would be impracticable and contrary to the public interest. Prior notice and opportunity for public comment on this action was impracticable because NMFS had insufficient time to provide for prior notice and the opportunity for public comment between the time Chinook and coho salmon abundance, catch, and effort information were developed and fisheries impacts were calculated, and the time the fishery modifications had to be implemented in order to ensure that fisheries are managed based on the best scientific information available. As previously noted, actual notice of the regulatory action was provided to fishers through telephone hotlines and radio notifications. These actions comply with the requirements of the annual management measures for ocean salmon fisheries (89 FR 44553, May 21, 2024; 89 FR 53529, June 27, 2024), the FMP, and regulations implementing the FMP under 50 CFR 660.409 and 660.411.</P>
                <P>There is good cause under 5 U.S.C. 553(d)(3) to waive the 30-day delay in effective date, as a delay in effectiveness of this action would allow fishing at levels inconsistent with the goals of the FMP and the current management measures.</P>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P>
                        16 U.S.C. 1801 
                        <E T="03">et seq.</E>
                    </P>
                </AUTH>
                <SIG>
                    <DATED>Dated: April 14, 2025.</DATED>
                    <NAME>Kelly Denit,</NAME>
                    <TITLE>Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06584 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 679</CFR>
                <DEPDOC>[Docket No. 250331-0057; RTID 0648-XE831]</DEPDOC>
                <SUBJECT>Fisheries of the Exclusive Economic Zone Off Alaska; Recreational Fishing for Chinook Salmon in the Cook Inlet Exclusive Economic Zone Area</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Temporary rule; closure.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>NMFS is prohibiting recreational fishing for Chinook salmon in the Cook Inlet exclusive economic zone (EEZ) Area. This action is necessary for the conservation of Cook Inlet Chinook salmon stocks that continue to be in a low state of abundance as assessed in the NMFS 2025 stock assessment and fisheries evaluation (SAFE) report and the 2025 State of Alaska forecasts of very low run strength.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective 0001 hours, Alaska local time (A.l.t.), May 1, 2025, through 2400 hours, A.l.t., August 15, 2025.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Adam Zaleski, 907-206-5802.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>NMFS manages the Cook Inlet EEZ Area according to the Fishery Management Plan for Salmon Fisheries in the EEZ off Alaska (Salmon FMP). The intended effect of this action is to conserve and manage the salmon resources in the Cook Inlet EEZ Area in accordance with the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act). Regulations governing fishing by U.S. vessels in accordance with the Salmon FMP appear at subpart H of 50 CFR part 600 and 50 CFR part 679.</P>
                <P>
                    In accordance with 50 CFR 679.118(c)(1)(ii), the Regional Administrator has determined it is necessary to close Chinook salmon recreational fishing for conservation and management purposes and is therefore prohibiting recreational fishing for Chinook salmon in the Cook Inlet EEZ Area. In making this determination, the Regional Administrator has considered the following factors: the low proposed 2025 Chinook salmon acceptable biological catch (ABC) in the Cook Inlet EEZ Area (proposed ABC of 261 Chinook salmon; 90 FR 14771, April 4, 2025); anticipated harvest rates, expected mortality, and the potential number of participants in the commercial and recreational fisheries in the Cook Inlet EEZ Area; and the State of Alaska's 2025 prediction of run sizes. Newly released 2025 Chinook salmon forecasts from the Alaska Department of Fish and Game (ADF&amp;G) predict very low run sizes for Chinook salmon stocks in Cook Inlet, which is likely to negatively impact the achievement of spawning escapement targets and returns during future years. As such, ADF&amp;G has issued closures of recreational fishing in State marine waters of Upper Cook Inlet from May 1 to August 15, 2025: 
                    <E T="03">https://www.adfg.alaska.gov/sf/EONR/index.cfm?ADFG=region.NR&amp;Year=2025&amp;NRID=3802.</E>
                     This action would prohibit recreational fishing for Chinook salmon in the Cook Inlet EEZ Area during the same time period (May 1 to August 15, 2025).
                </P>
                <HD SOURCE="HD1">Classification</HD>
                <P>NMFS issues this action pursuant to section 305(d) of the Magnuson-Stevens Act. This action is authorized by 50 CFR 679.118(c)(1)(ii), which was issued pursuant to section 304(c) of the Magnuson-Stevens Act, and is necessary to carry out the Salmon FMP. This action is exempt from review under Executive Order 12866.</P>
                <P>
                    Pursuant to 5 U.S.C. 553(b)(B), there is good cause to waive prior notice and an opportunity for public comment on this action. Notice and comment would be impracticable and contrary to the public interest, as it would prevent NMFS from responding to the most recent information regarding the status of Cook Inlet Chinook salmon stocks in a timely fashion and would delay the closure of recreational fishing for Chinook salmon in the Cook Inlet EEZ Area. A delay of this closure could result in recreational harvest of Chinook salmon that is not supported by current stock levels, which would prevent the conservation and management objectives for the Cook Inlet EEZ Area salmon fishery. NMFS developed this action as quickly as possible based on the relevant information on stock levels for Chinook salmon, primarily NMFS's finalization of the SAFE report that informs NMFS's proposed 2025 ABC for Chinook salmon (90 FR 14771, April 4, 
                    <PRTPAGE P="16092"/>
                    2025) and the State's release of 2025 Chinook salmon forecasts for Cook Inlet.
                </P>
                <P>Under section 553(d) of the Administrative Procedure Act, an agency must delay the effective date of an action for 30 days after publication, unless the agency finds good cause to make the action effective sooner. Pursuant to 5 U.S.C. 553(d)(3), the NOAA Assistant Administrator for Fisheries has determined that good cause exists to shorten the 30-day delay in the effective date of this action and make this rule effective May 1, 2025. This finding is based upon the reasons provided above for waiver of prior notice and opportunity for public comment.</P>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P>
                        16 U.S.C. 1801 
                        <E T="03">et seq.</E>
                    </P>
                </AUTH>
                <SIG>
                    <DATED>Dated: April 14, 2025.</DATED>
                    <NAME>Kelly Denit,</NAME>
                    <TITLE>Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06623 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </RULE>
        <RULE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 679</CFR>
                <DEPDOC>[Docket No. 250312-0037; RTID 0648-XE811]</DEPDOC>
                <SUBJECT>Fisheries of the Exclusive Economic Zone Off Alaska; Pacific Cod by Vessels Using Jig Gear in the Central Regulatory Area of the Gulf of Alaska</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Temporary rule; closure.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>NMFS is prohibiting directed fishing for Pacific cod by vessels using jig gear in the Central Regulatory Area of the Gulf of Alaska (GOA). This action is necessary to prevent exceeding the A season allowance of the 2025 total allowable catch (TAC) of Pacific cod by vessels using jig gear in the Central Regulatory Area of the GOA.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Effective 1200 hours, Alaska local time (A.l.t.), April 14, 2025, through 1200 hours, A.l.t., June 10, 2025.</P>
                </EFFDATE>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Abby Jahn, 907-586-7416.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>NMFS manages the groundfish fishery in the GOA exclusive economic zone according to the Fishery Management Plan for Groundfish of the Gulf of Alaska (FMP) prepared and recommended by the North Pacific Fishery Management Council under authority of the Magnuson-Stevens Fishery Conservation and Management Act (Magnuson-Stevens Act). Regulations governing fishing by U.S. vessels in accordance with the FMP appear at subpart H of 50 CFR part 600 and 50 CFR part 679.</P>
                <P>The A season allowance of the 2025 Pacific cod TAC apportioned to vessels using jig gear in the Central Regulatory Area of the GOA is 277 metric tons (mt) as established by the final 2025 and 2026 harvest specifications for groundfish in the GOA (90 FR 12468, March 18, 2025).</P>
                <P>In accordance with § 679.20(d)(1)(i), the Regional Administrator has determined that the A season allowance of the 2025 Pacific cod TAC apportioned to vessels using jig gear in the Central Regulatory Area of the GOA will soon be or has been reached. Therefore, the Regional Administrator is establishing a directed fishing allowance of 277 mt and is setting aside the remaining 0 mt as bycatch because it is not necessary to support other anticipated groundfish fisheries. In accordance with § 679.20(d)(1)(iii), the Regional Administrator finds that this directed fishing allowance will be or has been reached. Consequently, NMFS is prohibiting directed fishing for Pacific cod by vessels using jig gear in the Central Regulatory Area of the GOA to prevent exceeding this sector's A season allowance of Pacific cod TAC.</P>
                <P>While this closure is effective, the maximum retainable amounts at § 679.20(e) and (f) apply at any time during a trip.</P>
                <HD SOURCE="HD1">Classification</HD>
                <P>NMFS issues this action pursuant to section 305(d) of the Magnuson-Stevens Act. This action is required by 50 CFR part 679, which was issued pursuant to section 304(b) of the Magnuson-Stevens Act, and is exempt from review under Executive Order 12866.</P>
                <P>Pursuant to 5 U.S.C. 553(b)(B), there is good cause to waive prior notice and an opportunity for public comment on this action, as notice and comment would be impracticable and contrary to the public interest, as it would prevent NMFS from responding to the most recent fisheries data in a timely fashion, and would delay the closure of Pacific cod by vessels using jig gear in the A season in the Central Regulatory Area of the GOA. NMFS was unable to publish a notice providing time for public comment because the most recent, relevant data only became available as of April 9, 2025.</P>
                <P>The Assistant Administrator for Fisheries, NOAA also finds good cause to waive the 30-day delay in the effective date of this action under 5 U.S.C. 553(d)(3). This finding is based upon the reasons provided above for waiver of prior notice and opportunity for public comment.</P>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P>
                        16 U.S.C. 1801 
                        <E T="03">et seq.</E>
                    </P>
                </AUTH>
                <SIG>
                    <DATED>Dated: April 14, 2025.</DATED>
                    <NAME>Kelly Denit,</NAME>
                    <TITLE>Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06622 Filed 4-14-25; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </RULE>
    </RULES>
    <VOL>90</VOL>
    <NO>73</NO>
    <DATE>Thursday, April 17, 2025</DATE>
    <UNITNAME>Proposed Rules</UNITNAME>
    <PRORULES>
        <PRORULE>
            <PREAMB>
                <PRTPAGE P="16093"/>
                <AGENCY TYPE="F">DEPARTMENT OF ENERGY</AGENCY>
                <CFR>10 CFR Part 430</CFR>
                <DEPDOC>[EERE-2025-BT-STD-0001]</DEPDOC>
                <RIN>RIN 1904-AF72</RIN>
                <SUBJECT>Energy Conservation Program: Procedures, Interpretations, and Policies for Consideration of New or Revised Energy Conservation Standards and Test Procedures for Consumer Products and Certain Commercial/Industrial Equipment</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Energy Efficiency and Renewable Energy, Department of Energy.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Request for information.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        As part of its implementation of the Executive order, “Unleashing American Energy” (Jan. 20, 2025), the Department of Energy (DOE or the Department) is seeking comments and information from interested parties to assist DOE in identifying potential modifications to its procedures, interpretations, and policies for considering new or revised energy conservation standards and test procedures for consumer products and certain commercial and industrial equipment (
                        <E T="03">i.e.,</E>
                         the “Process Rule”). DOE is initiating this effort through this request for information to ensure consistency with recently issued Executive Orders, while continuing to satisfy the Department's statutory obligations in the development of appliance and equipment standards under the Energy Policy and Conservation Act (EPCA). Subsequently, DOE expects to expeditiously publish a notice of proposed rulemaking (NOPR) that proposes potential changes to the Process Rule and that will also provide feedback on the public comment received in response to this document and seek additional information on other potential improvements.
                    </P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written comments and information are requested and will be accepted on or before June 2, 2025.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Interested persons are encouraged to submit comments using the Federal eRulemaking Portal at 
                        <E T="03">www.regulations.gov</E>
                         under docket number EERE-2025-BT-STD-0001. Follow the instructions for submitting comments. Alternatively, interested persons may submit comments, identified by docket number EERE-2025-BT-STD-0001 and/or regulatory information number (RIN) 1904-AF72, by any of the following methods:
                    </P>
                    <P>
                        (1) 
                        <E T="03">Email: ProcessRule2025STD0001@ee.doe.gov.</E>
                         Include the docket number EERE-2025-BT-STD-0001 and/or RIN 1904-AF72 in the subject line of the message. Submit electronic comments in WordPerfect, Microsoft Word, PDF, or ASCII file format, and avoid the use of special characters or any form of encryption.
                    </P>
                    <P>
                        (2) 
                        <E T="03">Postal Mail:</E>
                         Appliance and Equipment Standards Program, U.S. Department of Energy, Building Technologies Office, Mailstop EE-5B, 1000 Independence Avenue SW, Washington, DC 20585-0121. If possible, please submit all items on a compact disc (CD), in which case it is not necessary to include printed copies.
                    </P>
                    <P>
                        (3) 
                        <E T="03">Hand Delivery/Courier:</E>
                         Appliance and Equipment Standards Program, U.S. Department of Energy, Building Technologies Office, 1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: (202) 287-1445. If possible, please submit all items on a CD, in which case it is not necessary to include printed copies.
                    </P>
                    <P>
                        No telefacsimiles (faxes) will be accepted. For detailed instructions on submitting comments and additional information on this process, 
                        <E T="03">see</E>
                         section III (Public Participation) of this document.
                    </P>
                    <P>
                        <E T="03">Docket:</E>
                         The docket for this activity, which includes 
                        <E T="04">Federal Register</E>
                         notices, comments, and other supporting documents/materials, is available for review at 
                        <E T="03">www.regulations.gov.</E>
                         All documents in the docket are listed in the 
                        <E T="03">www.regulations.gov</E>
                         index. However, some documents listed in the index, such as those containing information that is exempt from public disclosure, may not be publicly available.
                    </P>
                    <P>
                        The docket web page can be found at 
                        <E T="03">www.regulations.gov/docket/EERE-2025-BT-STD-0001.</E>
                         The docket web page contains instructions on how to access all documents, including public comments, in the docket. 
                        <E T="03">See</E>
                         section III of this document for information on how to submit comments through 
                        <E T="03">www.regulations.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P/>
                    <P>
                        Mr. Lucas Adin, U.S. Department of Energy, Office of Energy Efficiency and Renewable Energy, Building Technologies Office, EE-5B, 1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: (202) 287-5904. Email: 
                        <E T="03">ApplianceStandardsQuestions@ee.doe.gov.</E>
                    </P>
                    <P>
                        Mr. Pete Cochran, U.S. Department of Energy, Office of the General Counsel, GC-33, 1000 Independence Avenue SW, Washington, DC 20585-0121. Telephone: (202) 586-4798. Email: 
                        <E T="03">Peter.Cochran@hq.doe.gov.</E>
                    </P>
                    <P>
                        For further information on how to submit a comment, or review other public comments and the docket, contact the Appliance and Equipment Standards Program staff at (202) 287-1445 or by email: 
                        <E T="03">ApplianceStandardsQuestions@ee.doe.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Table of Contents</HD>
                <EXTRACT>
                    <FP SOURCE="FP-2">I. Introduction</FP>
                    <FP SOURCE="FP1-2">A. Authority</FP>
                    <FP SOURCE="FP1-2">B. Background</FP>
                    <FP SOURCE="FP-2">II. Request for Information</FP>
                    <FP SOURCE="FP1-2">A. Consumer Choice in Appliances</FP>
                    <FP SOURCE="FP1-2">B. Reduction of Regulatory Burden</FP>
                    <FP SOURCE="FP1-2">C. Promoting Market Competition and Innovation</FP>
                    <FP SOURCE="FP1-2">D. Analysis of Costs and Benefits</FP>
                    <FP SOURCE="FP1-2">E. Public Comment and Review</FP>
                    <FP SOURCE="FP1-2">F. Prioritizing Accuracy in Environmental Analyses</FP>
                    <FP SOURCE="FP1-2">G. Other Topics</FP>
                    <FP SOURCE="FP1-2">1. Satisfaction of Statutory Criteria</FP>
                    <FP SOURCE="FP1-2">2. Rulemaking Timelines</FP>
                    <FP SOURCE="FP1-2">3. Mandatory Application of Process Rule</FP>
                    <FP SOURCE="FP-2">III. Public Participation</FP>
                    <FP SOURCE="FP-2">IV. Approval of the Office of the Secretary</FP>
                </EXTRACT>
                <HD SOURCE="HD1">I. Introduction</HD>
                <P>
                    On January 20, 2025, the President issued Executive Order 14154, “Unleashing American Energy” (E.O. 14154). 90 FR 8353 (Jan. 29, 2025). That order stated the policy of the United States with regard to energy production and management. Among the stated elements of this policy are to safeguard the American people's freedom to choose from a variety of goods and appliances, including but not limited to lightbulbs, dishwashers, washing machines, gas stoves, water heaters, 
                    <PRTPAGE P="16094"/>
                    toilets, and shower heads, and to promote market competition and innovation within the manufacturing and appliance industries; to ensure that the global effects of a rule, regulation, or action shall, whenever evaluated, be reported separately from its domestic costs and benefits, in order to promote sound regulatory decision making and prioritize the interests of the American people; and to guarantee that all executive departments and agencies (agencies) provide opportunity for public comment and rigorous, peer-reviewed scientific analysis. The Executive order also specifies policies for prioritizing accuracy in environmental analyses, specifically instructing that for Federal regulatory processes, “all agencies shall adhere to only the relevant legislated requirements for environmental considerations, and any considerations beyond those requirements are eliminated.” The Executive order also provides instructions regarding consideration of greenhouse gas emissions and the “social cost of carbon.”
                </P>
                <P>
                    To implement E.O. 14154, the Department, among other actions, is evaluating existing policy regarding its approach for consideration of new or amended energy conservation standards and test procedures for consumer products and certain commercial and industrial equipment. In this request for information (RFI), DOE is seeking public comment on how best to achieve the objectives enumerated in E.O. 14154, while continuing to satisfy the Department's statutorily-prescribed obligations. DOE intends to use the responses to this RFI in the development of revisions to the Procedures, Interpretations, and Policies for Consideration of New or Revised Energy Conservation Standards and Test Procedures for Consumer Products and Certain Commercial/Industrial Equipment, codified at 10 CFR part 430, subpart C, appendix A, (“appendix A” or the Process Rule), which DOE generally uses to prescribe energy conservation standards and test procedures for both consumer products and commercial equipment pursuant to the Energy Policy and Conservation Act of 1975, as amended (Pub. L. 94-163; 42 U.S.C. 6291, 
                    <E T="03">et seq.;</E>
                     “EPCA”).
                </P>
                <P>In this RFI, DOE seeks comments and information on potential improvements to the Process Rule. In the paragraphs that follow, DOE lists issue areas on which it is particularly interested in receiving comments. DOE developed these issue areas based on E.O. 14154, feedback received in response to previous regulatory reform efforts related to the Process Rule, and on DOE's experience in promulgating standards using the procedures set out in the rule. In addition to the specific issues listed in this RFI, DOE welcomes comment on all other aspects of the Process Rule that interested parties believe could be improved or maintained. DOE intends to provide additional opportunities for public feedback if DOE moves forward to effectuate improvements to the Process Rule.</P>
                <HD SOURCE="HD2">A. Authority</HD>
                <P>
                    Title III, parts B 
                    <SU>1</SU>
                    <FTREF/>
                     and C 
                    <SU>2</SU>
                    <FTREF/>
                     of EPCA, Public Law 94-163 (42 U.S.C. 6291-6317, as codified), established the Energy Conservation Program for Consumer Products and Certain Industrial Equipment.
                    <SU>3</SU>
                    <FTREF/>
                     Under EPCA, DOE's energy conservation program for covered products consists essentially of four parts: (1) testing; (2) certification and enforcement procedures; (3) establishment of Federal energy conservation standards; and (4) labeling. Subject to certain criteria and conditions, DOE is required to develop test procedures to measure the energy efficiency, energy use, water use (as applicable), or estimated annual operating cost of each covered product and covered equipment during a representative average use cycle or period of use. (42 U.S.C. 6293; 42 U.S.C. 6314) Manufacturers of covered products and covered equipment must use the prescribed DOE test procedure when certifying to DOE that their products and equipment comply with the applicable energy conservation standards adopted under EPCA and when making any other representations to the public regarding the energy use or efficiency of those products. (42 U.S.C. 6293(c); 42 U.S.C. 6295(s); 42 U.S.C. 6314(a); and 42 U.S.C. 6316(a)) Similarly, DOE must use these test procedures to determine whether the products comply with energy conservation standards adopted pursuant to EPCA. (42 U.S.C. 6295(s); 42 U.S.C. 6316(a))
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         For editorial reasons, upon codification in the U.S. Code, part B was redesignated part A.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         Part C was added by Public Law 95-619, title IV, § 441(a). For editorial reasons, upon codification in the U.S. Code, part C was redesignated part A-1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         All references to EPCA in this document refer to the statute as amended through Energy Act of 2020, Public Law 116-260 (Dec. 27, 2020), which reflects the last statutory amendments that impact parts A and A-1 of EPCA.
                    </P>
                </FTNT>
                <P>
                    In addition, pursuant to EPCA, any new or amended energy conservation standard for covered products (and at least certain types of equipment) must be designed to achieve the maximum improvement in energy efficiency that is technologically feasible and economically justified. (42 U.S.C. 6295(o)(2)(A); 42 U.S.C. 6316(a)) In determining whether a standard is economically justified, EPCA requires DOE, to the greatest extent practicable, to consider the following seven factors: (1) The economic impact of the standard on the manufacturers and consumers; (2) the savings in operating costs, throughout the estimated average life of the products (
                    <E T="03">i.e.,</E>
                     life-cycle costs), compared with any increase in the price of, or in the initial charges for, or operating and maintaining expenses of, the products which are likely to result from the imposition of the standard; (3) the total projected amount of energy, or as applicable, water, savings likely to result directly from the standard; (4) any lessening of the utility or the performance of the products likely to result from the standard; (5) the impact of any lessening of competition, as determined in writing by the Attorney General, that is likely to result from the standard; (6) the need for national energy and water conservation; and (7) other factors DOE finds relevant. (42 U.S.C. 6295(o)(2)(B)(i)) Furthermore, the new or amended standard must result in a significant conservation of energy (42 U.S.C. 6295(o)(3)(B); 42 U.S.C. 6313(a)(6); and 42 U.S.C. 6316(a)) and comply with any other applicable statutory provisions.
                </P>
                <HD SOURCE="HD2">B. Background</HD>
                <P>
                    In July of 1996, DOE published a final rule in the 
                    <E T="04">Federal Register</E>
                     that codified DOE's “Procedures, Interpretations and Policies for Consideration of New or Revised Energy Conservation Standards for Consumer Products” at appendix A. 61 FR 36974 (July 15, 1996) (1996 Final Rule). The goal of the Process Rule was to increase transparency by elaborating on the procedures, interpretations, and policies that would guide the Department in establishing new or revised energy conservation standards for consumer products.
                </P>
                <P>
                    On February 14, 2020, DOE published a final rule in the 
                    <E T="04">Federal Register</E>
                     (February 2020 Final Rule) that significantly revised the Process Rule. 85 FR 8626. This rule made the specified rulemaking procedures binding on DOE and revised certain provisions to bring consistency with existing statutory requirements. Other changes included expanding early opportunities for public input on the Appliance Program's priority setting and rulemaking activities, setting a significant energy savings threshold for updating standards, establishing a 180-
                    <PRTPAGE P="16095"/>
                    day window between test procedure final rules and standards proposals, specified DOE's approach to adoption of industry test standards in its test procedures, and delineating procedures for rulemaking under the separate direct final rule and negotiated rulemaking authorities. DOE also published a companion final rule in the 
                    <E T="04">Federal Register</E>
                     on August 19, 2020 (August 2020 Final Rule), that clarified how DOE would conduct a comparative analysis across all trial standard levels when determining whether a particular trial standard level was economically justified. 85 FR 50937.
                </P>
                <P>
                    Subsequently, DOE published further amendments to the Process Rule, some of which reversed or modified amendments made in the February 2020 and August 2020 Final Rules. These amendments, among other things, reverted the Process Rule back to the non-binding status of the 1996 Final Rule and removed the significant energy savings threshold. DOE published the first of these final rules in the 
                    <E T="04">Federal Register</E>
                     on December 13, 2021 (December 2021 Final Rule). 86 FR 70892. DOE published a second final rule with additional amendments to the Process Rule in the 
                    <E T="04">Federal Register</E>
                     on April 8, 2024 (April 2024 Final Rule). 89 FR 24340.
                </P>
                <P>
                    The following paragraphs summarize the origins and historical amendments to the individual sections of the Process Rule.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         The full text of the current Process Rule is available at 
                        <E T="03">https://www.ecfr.gov/current/title-10/chapter-II/subchapter-D/part-430/subpart-C/appendix-Appendix%20A%20to%20Subpart%20C%20of%20Part%20430.</E>
                    </P>
                </FTNT>
                <P>
                    (1) 
                    <E T="03">Objectives</E>
                    —This section was established in the 1996 Final Rule and lays out the overall purpose of the Process Rule and its specific provisions. The February 2020 Final Rule made various editorial changes to this section.
                </P>
                <P>
                    (2) 
                    <E T="03">Scope</E>
                    —This section was established in the 1996 Final Rule and identifies the types of rulemakings to which the Process Rule applies. This section was amended in the February 2020 Final Rule to clarify that the Process Rule applies to both consumer products and commercial and industrial equipment.
                </P>
                <P>
                    (3) 
                    <E T="03">Application</E>
                    —This section was added in the February 2020 Final Rule and specified that the Process Rule would be binding on DOE. This section was subsequently amended in the December 2021 Final Rule to state that DOE has discretion to depart from the general guidance in appendix A when it deems necessary or appropriate, with the stipulation that DOE will provide interested parties with notice of the deviation and an explanation.
                </P>
                <P>
                    (4) 
                    <E T="03">Setting Priorities for Rulemaking Activity</E>
                    —This section was established in the 1996 Final Rule and identifies the factors that DOE applies when determining its regulatory plans and formulation of inputs for the annual Regulatory Agenda. This section was amended in the February 2020 Final Rule to specify that DOE would offer the opportunity to provide input on prioritization of rulemakings through a request for comment as DOE begins preparation of its Regulatory Agenda each spring.
                </P>
                <P>
                    (5) 
                    <E T="03">Coverage Determination Rulemakings</E>
                    —This section was established in the February 2020 Final Rule and describes the process DOE would follow to establish coverage for consumer products and industrial equipment. Subsequent amendments in the December 2021 Final Rule and April 2024 Final Rule allow DOE to seek early stakeholder input through preliminary rulemaking documents prior to a proposed coverage determination, removed a previous requirement that final coverage determinations be published prior to the initiation of any test procedure or energy conservation standard rulemaking and at least 180 days prior to publication of a test procedure NOPR, and removed the previously required 180-day period between finalization of DOE test procedures and issuance of a NOPR proposing new or amended energy conservation standards.
                </P>
                <P>
                    (6) 
                    <E T="03">Process for Developing Energy Conservation Standards</E>
                    —This section was established in the 1996 Final Rule and describes the process to be used in developing energy conservation standards for covered products and equipment other than those covered equipment subject to ASHRAE/IES Standard 90.1. The February 2020 Final Rule created an “early assessment” process for seeking stakeholder input prior to commencing a rule and committed to an initial rulemaking stage prior to a proposed rule (
                    <E T="03">e.g.,</E>
                     a framework document or preliminary analysis). This rule also established a threshold of “significant energy savings” of 0.3 quads or 10 percent site savings over 30 years. Subsequent amendments in the December 2021 and April 2024 Final Rules removed the energy savings threshold requirement and the requirement for a separate early assessment request for information (RFI) but clarified that DOE will issue one or more documents during the pre-NOPR stage of a rulemaking.
                </P>
                <P>
                    (7) 
                    <E T="03">Policies on Selection of Standards</E>
                    —This section was established in the 1996 Final Rule and describes Department policies concerning the selection of new or revised standards. DOE employs a walk-down process to ensure that DOE meets the statutory mandate that any new or amended standard is designed to achieve the maximum improvement in energy efficiency that is technologically feasible and economically justified (42 U.S.C. 6295(o)(2)(A); 42 U.S.C. 6316(a)). The February 2020 Final Rule made minor amendments to align with revisions elsewhere in in the Process Rule, while the August 2020 Final Rule added a clarification that DOE would conduct a comparative analysis across all trial standard levels when determining whether a level was economically justified. The December 2021 Final Rule amended this section to remove the requirement for a comparative analysis.
                </P>
                <P>
                    (8) 
                    <E T="03">Test Procedures</E>
                    —This section was established in the original 1996 Final Rule and describes the process by which DOE would establish test procedures for covered products and equipment. The February 2020 Final Rule added an early assessment process for test procedures and generally committed that DOE would adopt consensus industry test procedures unless not consistent with EPCA. Consistent with other amendments in that rule, this section was also amended to require that DOE finalize a test procedure 180 days in advance of a standards proposal. The December 2021 Final Rule clarified that DOE may revise consensus industry test procedure standards for compliance, certification, and enforcement purposes, and revised application of the 180-day period between finalization of a test procedure and issuance of a standards proposal.
                </P>
                <P>
                    (9) 
                    <E T="03">ASHRAE Equipment</E>
                    —this section was created by the February 2020 Final Rule and describes the process DOE will follow for conducting rulemakings for equipment subject to the “ASHRAE trigger” provisions in EPCA that apply when ASHRAE Standard 90.1 is amended with respect to standards, test procedures, or design requirements applicable to such equipment. The April 2024 Final Rule added provisions to clarify application of the 6- and 7-year lookback provisions for periodic review of standards and test procedures for ASHRAE equipment.
                </P>
                <P>
                    (10) 
                    <E T="03">Direct Final Rules</E>
                    —This section was established in the February 2020 Final Rule and describes how DOE would comply with EPCA requirements specific to publication of direct final rules, including the Department's interpretation of the term “fairly representative of relevant points of 
                    <PRTPAGE P="16096"/>
                    view” as it applies to interested stakeholders. The December 2021 Final Rule amended this section to clarify that DOE will implement its direct final rule authority under EPCA on a case-by-case basis including its evaluation of the meaning of “fairly representative”, subject to the circumstances of a particular rulemaking.
                </P>
                <P>
                    (11) 
                    <E T="03">Principles for Distinguishing Between Effective and Compliance Dates</E>
                    —This section was established in the February 2020 Final Rule and provides clarification as to the distinction between the effective and compliance dates of a final rule. This section has not been amended since its original establishment.
                </P>
                <P>
                    (12) 
                    <E T="03">Principles for the Conduct of the Engineering Analysis</E>
                    —This section was established in the 1996 Final Rule, and other than minor editorial changes, was not substantively amended in subsequent rulemakings.
                </P>
                <P>
                    (13) 
                    <E T="03">Principles for the Analysis of Impacts on Manufacturers</E>
                    —This section was established in the 1996 Final Rule, and other than minor editorial changes, was not substantively amended in subsequent rulemakings.
                </P>
                <P>
                    (14) 
                    <E T="03">Principles for the Analysis of Impacts on Consumers</E>
                    —This section was established in the 1996 Final Rule, and other than minor editorial changes, was not substantively amended in subsequent rulemakings.
                </P>
                <P>
                    (15) 
                    <E T="03">Consideration of Non-Regulatory Approaches</E>
                    —This section was established in the 1996 Final Rule and identifies how DOE will consider the effects of non-regulatory efforts by manufacturers, utilities, and other interested parties to produce substantial efficiency improvements. Revisions in the February 2020 Final Rule removed a section discussing the Department's pursuit of voluntary programs where it appears that highly efficient products can obtain a significant market share but less efficient products cannot be eliminated altogether because, for instance, of unacceptable adverse impacts on a significant subgroup of consumers.
                </P>
                <P>
                    (16) 
                    <E T="03">Cross-Cutting Analytical Assumptions</E>
                    —This section was established in the 1996 Final Rule and sets outs the sources and general principles that DOE expects to continue relying upon in selecting values for certain cross-cutting analytical assumptions. This section was amended in the February 2020 Final Rule to specify that DOE would use two time lengths—30 years and another time length that is specific to the standard being considered such as the useful lifetime of the product under consideration, as well as a 9-year regulatory time line as a sensitivity case. That rule also specified that DOE will endeavor to use robust price forecasting techniques in projecting future prices of products.
                </P>
                <HD SOURCE="HD1">II. Request for Information</HD>
                <P>As stated earlier in this document, the President has recently issued E.O. 14154, which includes topics relevant to DOE's process for establishing energy conservation standards and test procedures. The following sections request comment on how the DOE Process Rule may be updated for consistency with this Executive Order and in light of other recent developments. The following sections also request comment and information on additional topics related to the Process Rule.</P>
                <P>
                    DOE also notes that, although not specifically addressed in this RFI, DOE intends to more closely review the assumptions, models, and methodologies used in setting energy conservation standards for consumer products and equipment. Many of these topics were addressed in a report issued by The National Academies of Sciences, Engineering, and Medicine (‘NAS’) in 2021 
                    <SU>5</SU>
                    <FTREF/>
                     and have been the subject of comments submitted by stakeholders in recent energy conservation standards rulemakings. The recommendations in the NAS report as well as other conceptual considerations will be considered by DOE in a separate RFI. This follow-up RFI will more specifically request stakeholder comments on those topics.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         National Academies of Sciences, Engineering, and Medicine. 2021. Review of Methods Used by the U.S. Department of Energy in Setting Appliance and Equipment Standards. Washington, DC: The National Academies Press. Available at 
                        <E T="03">https://nap.nationalacademies.org/catalog/25992/review-of-methods-used-by-the-us-department-of-energy-in-setting-appliance-and-equipment-standards</E>
                         (last accessed February 27, 2025).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">A. Consumer Choice in Appliances</HD>
                <P>Among the policies of the United States stated in section 2(f) of E.O. 14154 is “to safeguard the American people's freedom to choose from a variety of goods and appliances.” 90 FR 8353, 8353 (Jan. 29, 2025).</P>
                <P>There are several provisions in EPCA that relate to preserving consumer choice when it comes to appliances and other covered products and equipment. For example, when determining whether a standard is economically justified, the Secretary is required by EPCA to determine whether the benefits of the standards exceed the burdens by considering, among other factors, any lessening of the utility or the performance of the covered products likely to result from the standard. (42 U.S.C. 6295(o)(2)(B)(i)(IV); 42 U.S.C. 6313(a)(6)(B)(ii)(IV); 42 U.S.C. 6316(a)) These provisions recognize that restricting consumer choice by eliminating features or reducing performance of appliances and other covered products/equipment is a burden on consumers.</P>
                <P>Similarly, EPCA also prohibits the Secretary from amending or establishing a new energy conservation standard if interested persons have established by a preponderance of the evidence that the standard is likely to result in the unavailability in the United States in any covered product type (or class) of performance characteristics (including reliability), features, sizes, capacities, and volumes that are substantially the same as those generally available in the United States at the time of the Secretary's finding. (42 U.S.C. 6295(o)(4); 42 U.S.C. 6313(a)(6)(B)(iii)(II)(aa); 42 U.S.C. 6316(a))</P>
                <P>The Process Rule expands on how DOE applies these statutory requirements when conducting an energy conservation standards rulemaking. Sections 7(b) and 6(a)(3)(iii) of the Process Rule specify that after DOE has determined that particular technology options for improving efficiency are technologically feasible, it further evaluates each technology option in light of multiple screening criteria, including the impact on product utility and the safety of a technology. If a technology is determined to have significant adverse impact on the utility of the product/equipment to subgroups of consumers, or result in the unavailability of any covered product type with performance characteristics (including reliability), features, sizes, capacities, and volumes that are substantially the same as products generally available in the U.S. at the time, it will not be considered further. If it is determined that a technology will have significant adverse impacts on health or safety, it will not be considered further.</P>
                <P>
                    The Process Rule currently specifies in section 14(a) that DOE will consider at the earliest stages of the development of a standard whether particular design options will lessen the utility of the covered products/equipment to the consumer. Furthermore, section 14(b) of the Process Rule also states that DOE will not promulgate a standard if it concludes that it would likely result in the unavailability of any covered product/equipment type with performance characteristics (including reliability), features, sizes, capacities, and volumes that are substantially the 
                    <PRTPAGE P="16097"/>
                    same as products/equipment generally available in the United States at the time.
                </P>
                <P>
                    DOE requests comment on whether and how the Process Rule should be updated to provide additional detail on how DOE's rulemaking process ensures protection of consumer choice in prescribing regulations for covered consumer products and commercial/industrial equipment as directed by EPCA. For example, while the current Process Rule discusses screening out technologies that would result in the unavailability of appliances with certain features or performance characteristics, the Process Rule does not provide examples or guidance on the types of features or performances characteristics that are relevant to consumer choice and should be preserved. DOE recognizes that consumers and manufacturers can often make decisions based on aspects of a product that are less tangible to efficiency such as color, internal arrangements (
                    <E T="03">e.g.,</E>
                     shelves and bins), or other add-ons that consumers and manufacturers value or market, respectively. To the extent any of these attributes are relevant to DOE's analysis of standards, DOE requests comments on ways to better analyze these consumer and business behavior decisions in a process rule or subsequent methodological RFI. In DOE's subsequent methodological RFI, DOE will request further input on the DOE's assumptions and analytic approach to estimating consumer choice, consumer welfare, and product availability.
                </P>
                <HD SOURCE="HD2">B. Reduction of Regulatory Burden</HD>
                <P>On January 31, 2025, the President issued Executive Order 14192, “Unleashing Prosperity through Deregulation.” 90 FR 9065 (Feb. 6, 2025). In section 2 of that E.O., the President stated that it is the policy of the executive branch to be prudent and financially responsible in the expenditure of funds, from both public and private sources, and to alleviate unnecessary regulatory burdens placed on the American people.</P>
                <P>
                    In an effort to address the requirements of E.O. 14192, DOE is examining its processes for establishing energy conservations standards and test procedures for covered products and equipment to identify opportunities for potential burden reduction. As an example, the revisions to the Process Rule in the February 2020 Final Rule DOE specified a threshold value of energy savings for determining whether the energy savings of a proposed energy conservation standard are significant enough to justify a new or amended standard. 85 FR 8626, 8655 (Feb. 14, 2020). As stated in that rule, the purpose of that step was to ensure that DOE will promulgate those standards that are most likely to confer substantial benefits to consumers and the Nation and eliminate from further consideration those potential standards that are projected to result in substantially lower energy savings below those generated under the relevant threshold. 
                    <E T="03">Id.</E>
                     at 85 FR 8656.
                </P>
                <P>
                    DOE requests comment and information on whether any changes to the Process Rule should be made, consistent with statutory requirements, to reduce the regulatory burden associated with test procedure and/or energy conservation standards rulemakings. DOE also broadly requests comment and information on costs, benefits, and burdens that are difficult to quantify (
                    <E T="03">e.g.,</E>
                     non-engineering costs and benefits, considerations such as convenience, cleaning or changing of parts, replacement or second-hand markets, and reduced or increased production/sales volumes). DOE welcomes specific recommendations and suggestions related to burden reduction including ways to measure and reduce overlapping regulations that may impact firms who manufacture similar or complementary goods. These comments and recommendations may also inform DOE's methodological RFI.
                </P>
                <HD SOURCE="HD2">C. Promoting Market Competition and Innovation</HD>
                <P>Under section 2(f), E.O. 14154 also states that it is the policy of the United States to “promote market competition and innovation within the manufacturing and appliance industries.” 90 FR 8353, 8353 (Jan. 29, 2025).</P>
                <P>Certain statutory provisions of EPCA relate to this topic. Specifically, when prescribing new or amended standards, DOE is directed in EPCA to consider the impact of any lessening of competition, as determined in writing by the Attorney General, that is likely to result from a standard. (42 U.S.C. 6295(o)(2)(B)(i)(V); 42 U.S.C. 6313(a)(6)(B)(ii)(V); 42 U.S.C. 6316(a)) EPCA also directs the Attorney General to determine the impact, if any, of any lessening of competition likely to result from a standard and to transmit such determination to the Secretary no later than 60 days after the publication of a proposed rule, together with an analysis of the nature and extent of such impact. (42 U.S.C. 6295(o)(2)(B)(ii); 42 U.S.C. 6316(a))</P>
                <P>The current Process Rule has provisions which also seek to address concerns related to market competition and innovation. Under sections 6(a)(3)(iii) and 7(b) of the Process Rule, DOE considers the practicability to manufacture, install, and service and unique pathway-proprietary technologies when determining whether a design option for improving efficiency will receive any further consideration in the rulemaking analysis. If it is determined that mass production of a technology in commercial products and reliable installation and servicing of the technology could not be achieved on the scale necessary to serve the relevant market at the time of the compliance date of the standard, then that technology will not be considered further. If a technology has proprietary protection and represents a unique pathway to achieving a given efficiency level, it will not be considered further, due to the potential for monopolistic concerns.</P>
                <P>Among the factors listed in section 6(a)(5)(iv) in the Process Rule that DOE considers when selecting a proposed standard are impacts on manufacturers and competition, including industry concentration analysis. The analysis of manufacturer impacts includes: estimated impacts on cash flow; assessment of impacts on manufacturers of specific categories of products/equipment and small manufacturers; assessment of impacts on manufacturers of multiple product-specific Federal regulatory requirements, including efficiency standards for other products and regulations of other agencies; and impacts on manufacturing capacity, employment, and capital investment.</P>
                <P>
                    As required by EPCA, section 14(c) of the Process Rules provides that DOE will solicit the views of the Department of Justice on any lessening of competition likely to result from a proposed standard and gives the views provided full consideration in assessing economic justification of a proposed standard. In addition, DOE may consult with the Department of Justice at earlier stages in the standards development process to seek its preliminary views on competitive impacts. When selecting a final standard under section 7(f) of the Process Rule, DOE considers any analysis by the Department of Justice concerning impacts on competition of the proposed standard. Section 15 of the Process Rule also states that DOE intends to consider the likely effects of non-regulatory initiatives on competition and manufacturers, among other factors, and this information will be used in assessing the likely incremental impacts of establishing or revising standards, in assessing—where possible—appropriate compliance dates for new or revised standards, and in 
                    <PRTPAGE P="16098"/>
                    considering DOE support of non-regulatory initiatives.
                </P>
                <P>DOE requests comment on whether and how the Process Rule should be updated to provide additional detail on how DOE's rulemaking process can promote market competition and innovation within the manufacturing and appliance industries and on DOE's historical analysis of potential impacts of any lessening of competition under 42 U.S.C. 6295(o)(2)(B)(i)(V). DOE requests comment in particular from small business manufacturers who could be uniquely impacted by energy efficiency standards. DOE also requests comment from manufacturers that manufacturer home appliances and other regulated consumer and commercial products in the United States. In the methodological RFI, DOE also anticipates requesting comment on how to analyze effects on competition including the agency's use of the Herfindahl-Hirschman index (HHI) on a rule-by-rule basis for relevant markets as well as on the cumulative market effects.</P>
                <HD SOURCE="HD2">D. Analysis of Costs and Benefits</HD>
                <P>Section 2(g) of E.O. 14154 establishes that it is the policy of the United States to ensure that the global effects of a rule, regulation, or action shall, whenever evaluated, be reported separately from its domestic costs and benefits, in order to promote sound regulatory decision making and prioritize the interests of the American people. 90 FR 8353, 8353-8354 (Jan. 29, 2025).</P>
                <P>The current Process Rule has provisions relevant to this topic. Among the factors listed in section 6(a)(5)(iv) of the Process Rule that DOE considers when selecting a proposed standard are the national energy, economic, and employment impacts of the proposed standard. This analysis includes estimated energy savings by fuel type; estimated net present value of benefits to all consumers; sensitivity analyses using high and low discount rates reflecting both private transactions and social discount rates and high and low energy price forecasts; and estimates of the direct and indirect impacts on employment by appliance manufacturers, relevant service industries, energy suppliers, suppliers of complementary and substitution products, and the economy in general.</P>
                <P>As stated in section 6(a)(5)(iv) of the Process Rule, DOE also analyzes the private impacts on American consumers when selecting a proposed standard, which includes: estimated private energy savings impacts on consumers based on regional average energy prices and energy usage; assessments of the variability of impacts on subgroups of consumers based on major regional differences in usage or energy prices and significant variations in installation costs or performance; consideration of changes to product utility, changes to purchase rate and/or costs of products, and other impacts of likely concern to all or some consumers, based to the extent practicable on direct input from consumers; estimated life-cycle cost with sensitivity analysis; and consideration of the increased first cost to consumers and the time required for energy cost savings to pay back these first costs. Section 14(e) of the Process Rule further describes the principles for the analysis of impacts on consumers regarding payback period and first cost, stating that DOE will consider the life-cycle cost, payback period, and cost of conserved energy to evaluate the savings in operating expenses relative to increases in purchase price, and that DOE will assess likely impacts on low-income households, product/equipment sales, and fuel switching, as appropriate.</P>
                <P>In addition, section 2(h) of E.O. 14154 states that it is the policy of the United States to guarantee that all executive departments and agencies (agencies) provide opportunity for public comment and rigorous, peer-reviewed scientific analysis. 90 FR 8353, 8354 (Jan. 29, 2025).</P>
                <P>
                    The current Process Rule contains provisions consistent with this objective of E.O. 14154. One of the objectives of the Process Rule is to use transparent and robust analytical methods. The Department seeks to use qualitative and quantitative analytical methods that are fully documented for the public and that produce results that can be explained and reproduced, so that the analytical underpinnings for policy decisions on standards are as sound and well-accepted as possible. 
                    <E T="03">See</E>
                     section 1(f) of the Process Rule. The Process Rule also directs DOE to document the analytical approaches and tools used to perform its analysis and provide interested parties an opportunity to review the results. 
                    <E T="03">See</E>
                     section 6 of the Process Rule.
                </P>
                <P>
                    DOE requests comment on whether and how the Process Rule should be updated to provide additional detail on how DOE's rulemaking process to ensure that the global effects of an energy conservation standard be reported separately from its domestic costs and benefits, in order to promote sound regulatory decision making and prioritize the interests of the American people. DOE requests comment and information on how to assess the effect of energy conservation rules on consumption of complementary goods (
                    <E T="03">e.g.,</E>
                     laundry detergent, stain removers, fabric softeners for clothes washers) that may result from amended standards. DOE requests comment and information on hard to quantify effects, whether positive or negative, on the design or operation of covered products that could result from requirements to make them more efficient (
                    <E T="03">e.g.,</E>
                     consumer user interfaces, changes to noise levels during operation). DOE also requests comment on the extent to which current the rulemaking process provides opportunity for rigorous, peer-reviewed scientific analysis and whether any improvements should be addressed in the Process Rule. These comments and information will inform not only DOE's forthcoming Process Rule proposal but also the forthcoming methodological RFI and DOE's wider effort related to updating DOE's TSD analysis.
                </P>
                <HD SOURCE="HD2">E. Public Comment and Review</HD>
                <P>
                    With regard to the specific requirement in section 2(h) of E.O. 14154 requiring agencies to provide adequate opportunity for public comment, DOE is directed by EPCA to provide opportunities for public comment throughout the rulemaking process under a specific set of timelines. (42 U.S.C. 6295(m)(2)((B); 42 U.S.C. 6313(a)(6)(C)(ii)(II); 42 U.S.C. 6316(a)) These statutory requirements are incorporated in the Process Rule. 
                    <E T="03">See,</E>
                     for example, sections 6(a)(6), 6(b)(2) and (3), and 6(c) of the Process Rule for the provisions applicable to the energy conservation standards rulemaking process. The Process Rule contains similar provisions applicable to coverage determinations and test procedures. While EPCA prescribes required comment periods for the proposal stages of DOE's rulemakings, the Process Rule specifies additional opportunities for public input early in the rulemaking process so that the initiation and direction of rulemakings is informed by comment from interested parties. 
                    <E T="03">See</E>
                     sections 6(a)(6) and 8(a)(6) of the Process Rule.
                </P>
                <P>
                    DOE makes rulemaking materials available for public review. The Process Rule further specifies that supporting documentation for rulemaking activities will be made available in the docket, with a discussion of analyses provided in technical support documents, for applicable rulemaking stages. 
                    <E T="03">See, e.g.,</E>
                     sections 5(a), 6(a)(1), 6(a)(4), and 6(b)(1) of the Process Rule.
                </P>
                <P>
                    DOE requests comment on whether and how the Process Rule should be amended to modify public comment and review procedures for rulemakings, consistent with EPCA's requirements.
                    <PRTPAGE P="16099"/>
                </P>
                <HD SOURCE="HD2">F. Prioritizing Accuracy in Environmental Analyses</HD>
                <P>Section 6 of E.O. 14154 states that, “all agencies shall adhere to only the relevant legislated requirements for environmental considerations and any considerations beyond these requirements are eliminated.” In fulfilling all such requirements, agencies shall strictly use the most robust methodologies of assessment at their disposal and shall not use methodologies that are arbitrary or ideologically motivated. E.O. 14154 disbands the Interagency Working Group on the Social Cost of Greenhouse Gases (IWG) and withdraws any guidance, instruction, recommendation, or documents issued by the IWG. The E.O. also directs the Administrator of the EPA to issue guidance that considers eliminating the “social cost of carbon” calculation from any Federal permitting or regulatory decisions, noting that the calculation of the “social cost of carbon” is marked by logical deficiencies, a poor basis in empirical science, politicization, and the absence of a foundation in legislation. 90 FR 8353, 8356 (Jan. 29, 2025).</P>
                <P>Prior to the issuance of this new guidance from EPA, E.O. 14154 directs agencies to ensure estimates to assess the value of changes in greenhouse gas emissions resulting from agency actions, including with respect to the consideration of domestic versus international effects and evaluating appropriate discount rates, are, to the extent permitted by law, consistent with the guidance contained in OMB Circular A-4 of September 17, 2003 (Regulatory Analysis). Furthermore, the head of each agency shall, as appropriate and consistent with applicable law, initiate a process to make such changes to any rule, regulation, policy or action as may be necessary to ensure consistency with the Regulatory Analysis. Finally, the Administrator of the EPA, in collaboration with the heads of any other relevant agencies, shall submit joint recommendations to the Director of OMB on the legality and continuing applicability of the Administrator's findings, “Endangerment and Cause or Contribute Findings for Greenhouse Gases Under Section 202(a) of the Clean Air Act,” Final Rule, 74 FR 66496 (Dec. 15, 2009). 90 FR 8353, 8356-8357 (Jan. 29, 2025).</P>
                <P>Related to this topic, section 16(h) of the Process Rule provides cross-cutting analytical assumptions for analyzing environmental impacts of rulemakings. DOE estimates the cumulative emission reductions of carbon dioxide, sulfur dioxide, nitrogen oxides, methane, nitrous oxides, and mercury likely to be avoided by candidate/trial standard levels. This analysis estimates both power sector and site combustion emission reductions and the emissions impact due to “upstream activities” in the fuel production chain. Further, the Process Rule states that DOE estimates the value of carbon dioxide and nitrous oxides emissions changes consistent with the guidance contained in OMB Circular A-4 of September 17, 2003 (Regulatory Analysis).</P>
                <P>DOE requests comment on how the Process Rule should be updated to modify environmental considerations. In the methodological RFI, DOE anticipates requesting further comment on the DOE's general methodology and assumptions in estimating direct and indirect impacts arising out of new or amended energy conservation standards. These methodological considerations may also include further requests for comment regarding DOE's approach to estimating greenhouse gas emission reductions and the monetization of those emissions, when considering new or amended energy conservation standards.</P>
                <HD SOURCE="HD2">G. Other Topics</HD>
                <HD SOURCE="HD3">1. Satisfaction of Statutory Criteria</HD>
                <P>
                    The Process Rule currently specifies the policies and procedures DOE follows in determining that a rulemaking satisfies the applicable statutory requirements of EPCA. Specifically, as required under 42 U.S.C. 6295(o)(2)(A), any new or revised standard must be designed to achieve the maximum improvement in energy efficiency that is determined to be both technologically feasible and economically justified (
                    <E T="03">see also</E>
                     42 U.S.C. 6313(a)(6)(A)-(C); 42 U.S.C. 6316(a)). Sections 6 and 7 of the Process Rule explain the process that DOE follows when conducting an energy conservation standards rulemaking. Section 6(a)(2) of the Process Rule specifies that DOE will solicit information at a pre-NOPR stage to determine whether a rulemaking is likely to satisfy all statutory criteria, and section 7(e)(2) of the Process Rule provides the fundamental statutory policies concerning the selection of standards as follows:
                </P>
                <P>(i) A trial standard level will not be proposed or promulgated if the Department determines that it is not both technologically feasible and economically justified. (42 U.S.C. 6295(o)(2)(A) and 42 U.S.C. 6295(o)(3)(B)) For a trial standard level to be economically justified, the Secretary must determine that the benefits of the standard exceed its burdens by, to the greatest extent practicable, considering the factors listed in 42 U.S.C. 6295(o)(2)(B)(i). A standard level is subject to a rebuttable presumption that it is economically justified if the payback period is three years or less. (42 U.S.C. 6295(o)(2)(B)(iii))</P>
                <P>(ii) If the Department determines that interested persons have established by a preponderance of the evidence that a standard level is likely to result in the unavailability in the United States of any covered product/equipment type (or class) with performance characteristics (including reliability), features, sizes, capacities, and volumes that are substantially the same as products generally available in the U.S. at the time of the determination, then that standard level will not be proposed. (42 U.S.C. 6295(o)(4))</P>
                <P>(iii) If the Department determines that a standard level would not result in significant conservation of energy, that standard level will not be proposed. (42 U.S.C. 6295(o)(3)(B))</P>
                <P>DOE requests comment on whether and how the Process Rule should be updated to provide additional detail on how DOE's rulemaking process satisfies the statutory requirements for establishing new or amended energy conservation standards.</P>
                <P>
                    For test procedure rulemakings, 42 U.S.C. 6293(b)(3) requires that any new or amended test procedures shall be reasonably designed to produce test results which measure energy efficiency, energy use, water use (in the case of showerheads, faucets, water closets and urinals), or estimated annual operating cost of a covered product during a representative average use cycle or period of use, and shall not be unduly burdensome to conduct (
                    <E T="03">see also</E>
                     42 U.S.C. 6314(a)(2)-(3)). Section 8 of the Process Rule explains the process that DOE follows when conducting a test procedure rulemaking consistent with DOE's statutory authority. Similar to the Process Rule procedures for energy conservation standards, section 8(a)(2) of the Process Rule states that DOE will solicit information at a pre-NOPR stage to determine whether a test procedure rulemaking is likely to satisfy the statutory criteria.
                </P>
                <P>
                    DOE requests comment on whether and how the Process Rule should be updated to provide additional detail on how DOE's rulemaking process satisfies the statutory requirements for establishing new or amended test procedures. DOE's methodological RFI may request comment on the assumptions and analytics associated with test procedures, and welcomes 
                    <PRTPAGE P="16100"/>
                    comments on whether these test procedure related methodologies should be included in that RFI.
                </P>
                <HD SOURCE="HD3">2. Rulemaking Timelines</HD>
                <P>
                    One objective of the Process Rule is to increase predictability of the rulemaking timetable (
                    <E T="03">see</E>
                     section 1(b)). The Process Rule accomplishes this objective by specifying the factors DOE will consider in prioritizing rulemaking activities. Additionally, the Process Rule specifies the steps DOE will follow when conducting a rulemaking, which includes the different stages of the rulemakings and any corresponding comment periods. The Process Rule also specifies the timing of test procedure rulemakings relative to energy conservation standards rulemakings—generally requiring that new or amended test procedures that impact measured energy use or efficiency will be finalized at least 180 days prior to the close of the comment period for either an energy conservation standards notice of proposed rulemaking or notice of proposed determination that standards do not need to be amended. See section 8(e)(1).
                </P>
                <P>DOE requests comment and information on whether and how the Process Rule should be amended to specify rulemaking prioritization and timelines, consistent with EPCA's requirements.</P>
                <HD SOURCE="HD3">3. Mandatory Application of Process Rule</HD>
                <P>In the February 2020 Final Rule, DOE had amended the Process Rule to specifically make its provisions binding on DOE, reasoning that this would increase public confidence in the fairness and predictability of the rulemaking process. 85 FR 8626, 8634 (Feb. 14, 2020). DOE subsequently amended these provisions in the December 2021 Final Rule to make the Process Rule again non-binding on the Department. 86 FR 70892, 70896-70901 (Dec. 13, 2021). However, DOE is interested in receiving comment on whether reintroducing a requirement that the Process Rule provisions be mandatory would better enable the Department to comply with its obligations under statute and applicable Executive Orders.</P>
                <HD SOURCE="HD1">III. Public Participation</HD>
                <P>
                    DOE will accept comments, data, and information regarding this request for information no later than the date provided in the 
                    <E T="02">DATES</E>
                     section at the beginning of this document. Interested parties may submit comments, data, and other information using any of the methods described in the 
                    <E T="02">ADDRESSES</E>
                     section at the beginning of this document.
                </P>
                <P>
                    <E T="03">Submitting comments via www.regulations.gov.</E>
                     The 
                    <E T="03">www.regulations.gov</E>
                     web page will require you to provide your name and contact information. Your contact information will be viewable to DOE Building Technologies staff only. Your contact information will not be publicly viewable except for your first and last names, organization name (if any), and submitter representative name (if any). If your comment is not processed properly because of technical difficulties, DOE will use this information to contact you. If DOE cannot read your comment due to technical difficulties and cannot contact you for clarification, DOE may not be able to consider your comment.
                </P>
                <P>However, your contact information will be publicly viewable if you include it in the comment itself or in any documents attached to your comment. Any information that you do not want to be publicly viewable should not be included in your comment, nor in any document attached to your comment. Otherwise, persons viewing comments will see only first and last names, organization names, correspondence containing comments, and any documents submitted with the comments.</P>
                <P>
                    Do not submit to 
                    <E T="03">www.regulations.gov</E>
                     information for which disclosure is restricted by statute, such as trade secrets and commercial or financial information (hereinafter referred to as Confidential Business Information (CBI)). Comments submitted through 
                    <E T="03">www.regulations.gov</E>
                     cannot be claimed as CBI. Comments received through the website will waive any CBI claims for the information submitted. For information on submitting CBI, see the Confidential Business Information section.
                </P>
                <P>
                    DOE processes submissions made through 
                    <E T="03">www.regulations.gov</E>
                     before posting. Normally, comments will be posted within a few days of being submitted. However, if large volumes of comments are being processed simultaneously, your comment may not be viewable for up to several weeks. Please keep the comment tracking number that 
                    <E T="03">www.regulations.gov</E>
                     provides after you have successfully uploaded your comment.
                </P>
                <P>
                    <E T="03">Submitting comments via email, hand delivery/courier, or postal mail.</E>
                     Comments and documents submitted via email, hand delivery/courier, or postal mail also will be posted to 
                    <E T="03">www.regulations.gov.</E>
                     If you do not want your personal contact information to be publicly viewable, do not include it in your comment or any accompanying documents. Instead, provide your contact information in a cover letter. Include your first and last names, email address, telephone number, and optional mailing address. The cover letter will not be publicly viewable as long as it does not include any comments.
                </P>
                <P>Include contact information each time you submit comments, data, documents, and other information to DOE. If you submit via postal mail or hand delivery/courier, please provide all items on a CD, if feasible, in which case it is not necessary to submit printed copies. No telefacsimiles (“faxes”) will be accepted.</P>
                <P>Comments, data, and other information submitted to DOE electronically should be provided in PDF (preferred), Microsoft Word or Excel, WordPerfect, or text (ASCII) file format. Provide documents that are not secured, written in English, and that are free of any defects or viruses. Documents should not contain special characters or any form of encryption and, if possible, they should carry the electronic signature of the author.</P>
                <P>
                    <E T="03">Campaign form letters.</E>
                     Please submit campaign form letters by the originating organization in batches of between 50 to 500 form letters per PDF or as one form letter with a list of supporters' names compiled into one or more PDFs. This reduces comment processing and posting time.
                </P>
                <P>
                    <E T="03">Confidential Business Information.</E>
                     Pursuant to 10 CFR 1004.11, any person submitting information that he or she believes to be confidential and exempt by law from public disclosure should submit via email, postal mail, or hand delivery/courier two well-marked copies: one copy of the document marked “confidential” including all the information believed to be confidential, and one copy of the document marked “non-confidential” with the information believed to be confidential deleted. DOE will make its own determination about the confidential status of the information and treat it according to its determination.
                </P>
                <P>It is DOE's policy that all comments may be included in the public docket, without change and as received, including any personal information provided in the comments (except information deemed to be exempt from public disclosure).</P>
                <HD SOURCE="HD1">IV. Approval of the Office of the Secretary</HD>
                <P>
                    The Secretary of Energy has approved publication of this request for information.
                    <PRTPAGE P="16101"/>
                </P>
                <HD SOURCE="HD2">Signing Authority</HD>
                <P>
                    This document of the Department of Energy was signed on April 8, 2025, by Louis Hrkman, Principal Deputy Assistant Secretary for Energy Efficiency and Renewable Energy, pursuant to delegated authority from the Secretary of Energy. That document with the original signature and date is maintained by DOE. For administrative purposes only, and in compliance with requirements of the Office of the Federal Register, the undersigned DOE Federal Register Liaison Officer has been authorized to sign and submit the document in electronic format for publication, as an official document of the Department of Energy. This administrative process in no way alters the legal effect of this document upon publication in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <SIG>
                    <DATED>Signed in Washington, DC, on April 9, 2025.</DATED>
                    <NAME>Treena V. Garrett,</NAME>
                    <TITLE>Federal Register Liaison Officer, U.S. Department of Energy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06330 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6450-01-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Aviation Administration</SUBAGY>
                <CFR>14 CFR Part 71</CFR>
                <DEPDOC>[Docket No. FAA-2025-0609; Airspace Docket No. 25-AEA-7]</DEPDOC>
                <RIN>RIN 2120-AA66</RIN>
                <SUBJECT>Amendment of Class E Airspace; Chambersburg, PA</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Aviation Administration (FAA), DOT.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of proposed rulemaking (NPRM).</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This action proposes to amend the Class E airspace extending upward from 700 feet above the surface designated for Chambersburg, PA by updating the reference to the St. Thomas Very High Frequency Omnidirectional Range Station and Tactical Air Navigation System (VORTAC) to show it as the St. Thomas Tactical Air Navigation System (TACAN). This action also proposes to update the airport coordinates and airport name for Franklin County Regional Airport. This action would support the safety and management of instrument flight rule (IFR) operations in the area.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before June 2, 2025.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>Send comments identified by FAA Docket No. FAA-2025-0609 and Airspace Docket No. 25-AEA-7 using any of the following methods:</P>
                    <P>
                        * 
                        <E T="03">Federal eRulemaking Portal:</E>
                         Go to 
                        <E T="03">www.regulations.gov</E>
                         and follow the online instructions for sending your comments electronically.
                    </P>
                    <P>
                        * 
                        <E T="03">Mail:</E>
                         Docket Operations, M-30; U.S. Department of Transportation, 1200 New Jersey Avenue SE, Room W12-140, West Building Ground Floor, Washington, DC 20590-0001.
                    </P>
                    <P>
                        * 
                        <E T="03">Hand Delivery or Courier:</E>
                         Take comments to Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except for Federal holidays.
                    </P>
                    <P>
                        * 
                        <E T="03">Fax:</E>
                         Fax comments to Docket Operations at (202) 493-2251.
                    </P>
                    <P>
                        <E T="03">Docket:</E>
                         Background documents or comments received may be read at 
                        <E T="03">www.regulations.gov</E>
                         at any time. Follow the online instructions for accessing the docket or go to Docket Operations in Room W12-140 of the West Building Ground Floor at 1200 New Jersey Avenue SE, Washington, DC, between 9 a.m. and 5 p.m., Monday through Friday, except for Federal holidays.
                    </P>
                    <P>
                        FAA Order JO 7400.11J Airspace Designations and Reporting Points and subsequent amendments can be viewed online at 
                        <E T="03">www.faa.gov/air_traffic/publications/.</E>
                         You may also contact the Rules and Regulations Group, Policy Directorate, Federal Aviation Administration, 600 Independence Avenue SW, Washington, DC 20597; telephone: (202) 267-8783.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P> Marc Ellerbee, Operations Support Group, Eastern Service Center, Federal Aviation Administration, 1701 Columbia Avenue, College Park, GA 30337; Telephone: (404) 305-5589.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Authority for This Rulemaking</HD>
                <P>The FAA's authority to issue rules regarding aviation safety is found in Title 49 of the United States Code. Subtitle I, Section 106, describes the authority of the FAA Administrator. Subtitle VII, Aviation Programs, describes in more detail the scope of the agency's authority. This rulemaking is promulgated under the authority described in Subtitle VII, Part A, Subpart I, Section 40103. Under that section, the FAA is charged with prescribing regulations to assign the use of airspace necessary to ensure the safety of aircraft and the efficient use of airspace. This regulation is within the scope of that authority, as it would amend Class E airspace in Chambersburg, PA.</P>
                <HD SOURCE="HD1">Comments Invited</HD>
                <P>The FAA invites interested persons to participate in this rulemaking by submitting written comments, data, or views. Comments are specifically invited on the overall regulatory, aeronautical, economic, environmental, and energy-related aspects of the proposal. The most helpful comments reference a specific portion of the proposal, explain the reason for any recommended change, and include supporting data. To ensure the docket does not contain duplicate comments, commenters should submit only one time if comments are filed electronically, or commenters should send only one copy of written comments if comments are filed in writing.</P>
                <P>The FAA will file in the docket all comments it receives, as well as a report summarizing each substantive public contact with FAA personnel concerning this proposed rulemaking. Before acting on this proposal, the FAA will consider all comments it receives on or before the closing date for comments. The FAA will consider comments filed after the comment period has closed if it is possible to do so without incurring expense or delay. The FAA may change this proposal in light of the comments it receives.</P>
                <P>
                    <E T="03">Privacy:</E>
                     In accordance with 5 U.S.C. 553(c), DOT solicits comments from the public to better inform its rulemaking process. DOT posts these comments, without edits, including any personal information the commenter provides, to 
                    <E T="03">www.regulations.gov,</E>
                     as described in the system of records notice (DOT/ALL-14 FDMS), which can be reviewed at 
                    <E T="03">www.dot.gov/privacy.</E>
                </P>
                <HD SOURCE="HD1">Availability of Rulemaking Documents</HD>
                <P>
                    An electronic copy of this document may be downloaded through the internet at 
                    <E T="03">www.regulations.gov.</E>
                     Recently published rulemaking documents can also be accessed through the FAA's web page at 
                    <E T="03">www.faa.gov/air_traffic/publications/airspace_amendments/.</E>
                </P>
                <P>
                    You may review the public docket containing the proposal, any comments received, and any final disposition in person in the Dockets Operations office (see 
                    <E T="02">ADDRESSES</E>
                     section for address, phone number, and hours of operations). An informal docket may also be examined during regular business hours at the office of the Eastern Service Center, Federal Aviation Administration, Room 210, 1701 Columbia Ave., College Park, GA 30337.
                    <PRTPAGE P="16102"/>
                </P>
                <HD SOURCE="HD1">Incorporation by Reference</HD>
                <P>
                    Class E5 airspace designations are published in Paragraph 6005 of FAA Order JO 7400.11, Airspace Designations and Reporting Points, which is incorporated by reference in 14 CFR 71.1 on an annual basis. This document proposes to amend the current version of that order, FAA Order JO 7400.11J, dated July 31, 2024, and effective September 15, 2024. These updates will be published in the next update to FAA Order JO 7400.11. FAA Order JO 7400.11J is publicly available as listed in the 
                    <E T="02">ADDRESSES</E>
                     section of this document.
                </P>
                <P>FAA Order JO 7400.11J lists Class A, B, C, D, and E airspace areas, air traffic service routes, and reporting points.</P>
                <HD SOURCE="HD1">The Proposal</HD>
                <P>The FAA proposes an amendment to 14 CFR part 71 that would amend the Class E airspace extending upward from 700 feet above the surface designated for Chambersburg, PA. Controlled airspace is necessary for the safety and management of instrument flight rules (IFR) operations in the area. The VOR portion of the St. Thomas VORTAC was decommissioned on November 30, 2023, and only the TACAN remains as a functional part of the NAVAID. This rule would change the associated references in the airspace legal description from St. Thomas VORTAC to St. Thomas TACAN. This action would also amend the airspace by updating the airport coordinates and the airport name in the airspace legal description to reflect the current information.</P>
                <HD SOURCE="HD1">Regulatory Notices and Analyses</HD>
                <P>The FAA has determined that this proposed regulation only involves an established body of technical regulations for which frequent and routine amendments are necessary to keep them operationally current. It, therefore, (1) is not a “significant regulatory action” under Executive Order 12866; (2) is not a “significant rule” under Department of Transportation (DOT) Regulatory Policies and Procedures (44 FR 11034; February 26, 1979); and (3) does not warrant preparation of a regulatory evaluation as the anticipated impact is so minimal. Since this is a routine matter that will only affect air traffic procedures and air navigation, it is certified that this proposed rule, when promulgated, will not have a significant economic impact on a substantial number of small entities under the criteria of the Regulatory Flexibility Act.</P>
                <HD SOURCE="HD1">Environmental Review</HD>
                <P>This proposal will be subject to an environmental analysis in accordance with FAA Order 1050.1F, “Environmental Impacts: Policies and Procedures,” prior to any final regulatory action by the FAA.</P>
                <LSTSUB>
                    <HD SOURCE="HED">Lists of Subjects in 14 CFR Part 71</HD>
                    <P>Airspace, Incorporation by reference, Navigation (air).</P>
                </LSTSUB>
                <HD SOURCE="HD1">The Proposed Amendment</HD>
                <P>In consideration of the foregoing, the Federal Aviation Administration proposes to amend 14 CFR part 71 as follows:</P>
                <PART>
                    <HD SOURCE="HED">PART 71—DESIGNATION OF CLASS A, B, C, D, AND E AIRSPACE AREAS; AIR TRAFFIC SERVICE ROUTES; AND REPORTING POINTS</HD>
                </PART>
                <AMDPAR>1. The authority citation for 14 CFR part 71 continues to read as follows:</AMDPAR>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P>49 U.S.C. 106(f), 106(g), 40103, 40113, 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959-1963 Comp., p. 389.</P>
                </AUTH>
                <SECTION>
                    <SECTNO>§ 71.1</SECTNO>
                    <SUBJECT>[Amended]</SUBJECT>
                </SECTION>
                <AMDPAR>2. The incorporation by reference in 14 CFR 71.1 of FAA Order JO 7400.11J, Airspace Designations and Reporting Points, dated July 31, 2024, and effective September 15, 2024, is amended as follows:</AMDPAR>
                <EXTRACT>
                    <HD SOURCE="HD2">Paragraph 6005 Class E Airspace Areas Extending Upward From 700 Feet or More Above the Surface of the Earth.</HD>
                    <STARS/>
                    <HD SOURCE="HD1">AEA PA E5 Chambersburg, PA [Amended]</HD>
                    <FP SOURCE="FP-2">Franklin County Regional Airport, PA</FP>
                    <FP SOURCE="FP1-2">(Lat. 39°58′23″ N, long. 77°38′36″ W)</FP>
                    <FP SOURCE="FP-2">St. Thomas TACAN</FP>
                    <FP SOURCE="FP1-2">(Lat. 39°56′00″ N, long. 77°57′03″ W)</FP>
                    <P>That airspace extending upward from 700 feet above the surface within a 6.5-mile radius of Franklin County Regional Airport and within a 7-mile radius of Franklin County Regional Airport extending clockwise from a 039° bearing from the airport to a 061° bearing from the airport and within a 13.1-mile radius of Franklin County Regional Airport extending clockwise from a 061° bearing from the airport to a 135° bearing from the airport and within a 7-mile radius of Franklin County Regional Airport extending clockwise from a 135° bearing from the airport to a 174° bearing from the airport and within 3.5 miles each side of the St. Thomas TACAN 082° radial extending from the TACAN to 25.2 miles east of the TACAN and excluding that portion within the Hagerstown, MD, Class E airspace area.</P>
                </EXTRACT>
                <STARS/>
                <SIG>
                    <DATED>Issued in College Park, Georgia, on April 14, 2025.</DATED>
                    <NAME>Patrick Young,</NAME>
                    <TITLE>Manager, Airspace &amp; Procedures Team North, Eastern Service Center, Air Traffic Organization.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06570 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-13-P</BILCOD>
        </PRORULE>
        <PRORULE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Fish and Wildlife Service</SUBAGY>
                <CFR>50 CFR Part 17</CFR>
                <AGENCY TYPE="O">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <CFR>50 CFR Part 222</CFR>
                <DEPDOC>[Docket No. FWS-HQ-ES-2025-0034; FXES11110900000-256 FF09E23000; 250411-0064]</DEPDOC>
                <RIN>RIN 1018-BI38; 0648-BN93</RIN>
                <SUBJECT>Rescinding the Definition of “Harm” Under the Endangered Species Act</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Fish and Wildlife Service, Interior; National Oceanic and Atmospheric Administration, Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of proposed rulemaking; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Fish and Wildlife Service (FWS) and the National Marine Fisheries Service (NMFS) (collectively referred to as the Services or we) are proposing to rescind the regulatory definition of “harm” in our Endangered Species Act (ESA or the Act) regulations. The existing regulatory definition of “harm,” which includes habitat modification, runs contrary to the best meaning of the statutory term “take.” We are undertaking this change to adhere to the single, best meaning of the ESA.</P>
                </SUM>
                <EFFDATE>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received by May 19, 2025.</P>
                </EFFDATE>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        A plain language summary of this proposed rule is available at 
                        <E T="03">https://www.regulations.gov</E>
                         in Docket No. FWS-HQ-ES-2025-0034. You may submit comments by one of the following methods:
                    </P>
                    <P>
                        (1) 
                        <E T="03">Electronically:</E>
                         Go to the Federal eRulemaking Portal: 
                        <E T="03">https://www.regulations.gov.</E>
                         In the Search box, enter FWS-HQ-ES-2025-0034, which is the docket number for this rulemaking. Then, click on the Search button. On the resulting page, in the panel on the left side of the screen, under the Document Type heading, 
                        <PRTPAGE P="16103"/>
                        check the Proposed Rule box to locate this document. You may submit a comment by clicking on “Comment.”
                    </P>
                    <P>
                        (2) 
                        <E T="03">By hard copy:</E>
                         Submit by U.S. mail to: Public Comments Processing, Attn: FWS-HQ-ES-2025-0034, U.S. Fish and Wildlife Service, MS: PRB/3W, 5275 Leesburg Pike, Falls Church, VA 22041-3803.
                    </P>
                    <P>
                        We request that you send comments only by the methods described above. Comments must be submitted to 
                        <E T="03">https://www.regulations.gov</E>
                         before 11:59 p.m. (Eastern Time) on the date specified in 
                        <E T="02">DATES</E>
                        . We will not consider mailed comments that are not postmarked by the date specified in 
                        <E T="02">DATES</E>
                        .
                    </P>
                    <P>
                        We will post your entire comment—including your personal identifying information—on 
                        <E T="03">https://www.regulations.gov.</E>
                         If you provide personal identifying information in your comment, you may request at the top of your document that we withhold this information from public review. We cannot guarantee, however, that we will be able to do so. Anonymous comments will be considered. Comments and materials we receive, as well as supporting documentation we used in preparing this proposed rule, will be available for public inspection on 
                        <E T="03">https://www.regulations.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Gina Shultz, Acting Assistant Director, Ecological Services, at 703-358-2171 or 
                        <E T="03">ADEcologicalServices@fws.gov</E>
                         with a subject line of “1018-BI38.” Individuals in the United States who are deaf, deafblind, hard of hearing, or have a speech disability may dial 711 (TTY, TDD, or TeleBraille) to access telecommunications relay services. Individuals outside the United States should use the relay services offered within their country to make international calls to the point-of-contact in the United States. For a summary of the proposed rule, please see the proposed rule summary document in Docket No. FWS-HQ-ES-2025-0034 on 
                        <E T="03">https://www.regulations.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    The Endangered Species Act (ESA) prohibits the “take” of endangered species.
                    <SU>1</SU>
                    <FTREF/>
                     Under the ESA, “[t]he term `take' means to harass, harm, pursue, hunt, shoot, wound, kill, trap, capture, or collect, or to attempt to engage in any such conduct.” 
                    <SU>2</SU>
                    <FTREF/>
                     This makes sense in light of the well-established, centuries-old understanding of “take” as meaning to kill or capture a wild animal.
                    <SU>3</SU>
                    <FTREF/>
                     Regulations previously promulgated by FWS expanded the ESA's reach in ways that do not reflect the best reading of the statute, to prohibit actions that impair the habitat of protected species: “Harm in the definition of `take' in the Act means an act which actually kills or injures wildlife. Such an act may include significant habitat modification or degradation where it actually kills or injures wildlife by significantly impairing essential behavioral patterns, including breeding, feeding or sheltering.” 
                    <SU>4</SU>
                    <FTREF/>
                     NMFS' definition is materially identical: “Harm in the definition of `take' in the Act means an act which actually kills or injures fish or wildlife. Such an act may include significant habitat modification or degradation which actually kills or injures fish or wildlife by significantly impairing essential behavioral patterns, including, breeding, spawning, rearing, migrating, feeding or sheltering.” 
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         16 U.S.C. 1538(a)(1)(B)-(C).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         16 U.S.C. 1532(19).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See, e.g.,</E>
                         11 Oxford English Dictionary (1933); Webster's New International Dictionary of the English Language (2d ed. 1949); 
                        <E T="03">Geer</E>
                         v. 
                        <E T="03">Connecticut,</E>
                         161 U.S. 519, 523 (1896); 2 W. Blackstone, Commentaries 411 (1766).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         50 CFR 17.3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         50 CFR 222.102.
                    </P>
                </FTNT>
                <P>
                    In 
                    <E T="03">Babbitt</E>
                     v. 
                    <E T="03">Sweet Home Chapter of Communities for a Great Oregon,</E>
                     515 U.S. 687 (1995), the Supreme Court upheld FWS' regulation under 
                    <E T="03">Chevron</E>
                     deference.
                    <SU>6</SU>
                    <FTREF/>
                     Justice Scalia dissented, joined by Chief Justice Rehnquist and Justice Thomas, and would have held that even under 
                    <E T="03">Chevron</E>
                     this interpretation was unsustainable.
                    <SU>7</SU>
                    <FTREF/>
                     As Justice Scalia observed, “[i]f `take' were not elsewhere defined in the Act, none could dispute what it means, for the term is as old as the law itself. To `take,' when applied to wild animals, means to reduce those animals, by killing or capturing, to human control.” 
                    <SU>8</SU>
                    <FTREF/>
                     In addition, under the 
                    <E T="03">noscitur a sociis</E>
                     canon, the definition of “harm,” like the other nine verbs in the definition, should be construed to require an “affirmative act[ ] . . . directed immediately and intentionally against a particular animal—not [an] act[ ] or omission[ ] that indirectly and accidentally cause[s] injury to a population of animals.” 
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         515 U.S. at 703. Although 
                        <E T="03">Sweet Home</E>
                         concerned FWS's regulation at 50 CFR 17.3, it applies equally to 50 CFR 222.102 given the definitions are substantially the same.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">Id.</E>
                         at 715. The D.C. Circuit also rejected the Secretary's definition. 
                        <E T="03">See Sweet Home Chapter of Communities for a Great Oregon</E>
                         v. 
                        <E T="03">Babbitt,</E>
                         17 F.3d 1463 (D.C. Cir. 1994); 
                        <E T="03">id.</E>
                         at 1472 (Sentelle, J., concurring); 
                        <E T="03">but see id.</E>
                         at 1473 (Mikva, C.J., dissenting).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         515 U.S. at 717.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">Id.</E>
                         at 719-20.
                    </P>
                </FTNT>
                <P>
                    The Supreme Court, nearly 30 years after 
                    <E T="03">Sweet Home,</E>
                     overruled the 
                    <E T="03">Chevron</E>
                     doctrine in 
                    <E T="03">Loper Bright Enterprises</E>
                     v. 
                    <E T="03">Raimondo,</E>
                     603 U.S. 369, 400 (2024). Under 
                    <E T="03">Loper Bright,</E>
                     “the question that matters” is whether “the 
                    <E T="03">statute</E>
                     authorizes the challenged agency action.” 
                    <SU>10</SU>
                    <FTREF/>
                     In other words, does the agency's regulation match the single, best meaning of the statute? 
                    <SU>11</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         603 U.S. at 406 (emphasis added).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">Id.</E>
                         at 400.
                    </P>
                </FTNT>
                <P>
                    We have concluded that our existing regulations, which still contain the definition of “harm” contested in 
                    <E T="03">Sweet Home,</E>
                     do not match the single, best meaning of the statute. As Justice Scalia's dissent in 
                    <E T="03">Sweet Home</E>
                     explains, the regulations' interpretation of the statutory language violates the 
                    <E T="03">noscitur a sociis</E>
                     canon, did not properly account for over a thousand years of history, and is inconsistent with the structure of the ESA. Nor is any replacement definition needed. The ESA itself defines “take,” 
                    <SU>12</SU>
                    <FTREF/>
                     and further elaborating on one subcomponent of that definition—“harm”—is unnecessary in light of the comprehensive statutory definition.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         16 U.S.C. 1532(19).
                    </P>
                </FTNT>
                <P>
                    We recognize that the Supreme Court held in 
                    <E T="03">Loper Bright</E>
                     that its “prior cases that relied on the 
                    <E T="03">Chevron</E>
                     framework . . . are still subject to statutory 
                    <E T="03">stare decisis.</E>
                    ” 
                    <SU>13</SU>
                    <FTREF/>
                     But under the then-prevailing 
                    <E T="03">Chevron</E>
                     framework, 
                    <E T="03">Sweet Home</E>
                     held only that the existing regulation is a permissible reading of the ESA, not the only possible such reading. Our rescission of the regulation definition on the ground that it does not reflect the best reading of the statutory text thus would not only effectuate the Executive Branch's obligation to “take Care that the Laws be faithfully executed,” 
                    <SU>14</SU>
                    <FTREF/>
                     but would also be fully consistent with 
                    <E T="03">Sweet Home.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         603 U.S. at 412.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         U.S. Const. art. II, § 3.
                    </P>
                </FTNT>
                <P>Accordingly, because our regulations do not accord with the single, best meaning of the statutory text, we propose to rescind the regulatory definition of “harm” and rest on the statutory definition of “take.” This revision would be prospective only and would not affect permits that have been granted as of the date the regulation becomes final.</P>
                <HD SOURCE="HD1">No Reliance in Unlawful Regulations</HD>
                <P>
                    In proposing to rescind our regulatory definitions of harm, we are considering whether there are legitimate reliance interests on the regulations under reexamination. 
                    <E T="03">Dep't of Homeland Sec.</E>
                     v. 
                    <E T="03">Regents of the Univ. of California,</E>
                     591 
                    <PRTPAGE P="16104"/>
                    U.S. 1, 30 (2020). However, because it is the President's duty to see that the laws are faithfully executed, in all but the most unusual cases, we believe that reliance interests likely will be outweighed by the constitutional interest in repealing regulations that do not reflect the best reading of the statute.
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         See 
                        <E T="03">Regents,</E>
                         591 U.S. at 30-32.
                    </P>
                </FTNT>
                <P>We are aware that there are parties who are likely to provide comments concerning their reliance interests on environmental and aesthetic grounds, even as we are aware there are property owners and regulated entities who are likely to provide comments regarding interests in not being subject to a regime Congress may never have authorized. We therefore solicit public comment on reliance interests.</P>
                <HD SOURCE="HD1">Regulatory Planning and Review—Executive Orders 12866 and 14192</HD>
                <P>This proposed rule has been determined to be significant for purposes of Executive Order 12866. This proposed rule, if finalized as proposed, is expected to be an E.O. 14192 deregulatory action.</P>
                <HD SOURCE="HD1">Regulatory Flexibility Act</HD>
                <P>
                    Under the Regulatory Flexibility Act (as amended by the Small Business Regulatory Enforcement Fairness Act (SBREFA) of 1996; 5 U.S.C. 601 
                    <E T="03">et seq.</E>
                    ), whenever a Federal agency is required to publish a notice of rulemaking for any proposed or final rule, it must prepare and make available for public comment a regulatory flexibility analysis that describes the effect of the rule on small entities (
                    <E T="03">i.e.,</E>
                     small businesses, small organizations, and small government jurisdictions). No regulatory flexibility analysis is required if the head of an agency or an appropriate designee certifies that the rule will not have a significant economic impact on a substantial number of small entities. Here, if adopted as proposed, this rulemaking may have a significant economic impact on a substantial number of small entities. The following discussion explains our rationale.
                </P>
                <P>This proposed rule seeks comment on rescission of the definition of “harm” for both NMFS and FWS. In the proposed rule seeking to codify the redefinition of the FWS regulations defining harm, the Department of the Interior noted its determination that the rule would not have a significant economic impact on a substantial number of small entities under the RFA. See 46 FR 29490 (June 2, 1981). As for NMFS, in the preamble to the proposed rule that proposed to codify NMFS's then-current interpretation of “harm,” the Assistant General Counsel for Legislation and Regulation of the Department of Commerce certified that the proposed rule, if adopted, would not have a significant economic impact on a substantial number of small entities because “NMFS is not implementing a new policy or definition. NFMS [sic] definition of harm would remain the same whether or not it is codified. . . .” 63 FR 24148 at 24149-24150 (May 1, 1998).</P>
                <P>In response to public comments at that time, NMFS developed a final regulatory flexibility analysis that analyzed the rule's potential effects on agriculture, residential or commercial construction, mining, and municipal water, sewer, and waste management. NMFS concluded that the analysis “indicates that this regulation may pose some incremental cost for some small entities; however it remains uncertain whether these costs constitute a significant economic impact on a substantial number of small entities.”</P>
                <P>Because this proposed rule would rescind that definition of “harm” for both NMFS and FWS, it is expected that incremental costs on small entities imposed by that prior definition will be relieved, and this rulemaking, if adopted as proposed, may have a significant economic impact by reducing burden on a substantial number of small entities relative to the previous rulemaking. As a result, an initial regulatory flexibility analysis has been prepared and is provided as follows.</P>
                <P>
                    The reasons for this deregulatory action are set out above, along with a succinct statement of the objectives and legal basis for the proposed rule. 
                    <E T="03">See</E>
                     5 U.S.C. 603(b)(1)-(2). An estimate of the potentially large number of small entities that could be impacted by this deregulatory action is unknown at this time because the 1981 rulemaking record does not contain that information and because the proposed rule will impact any small entity complying with the Endangered Species Act. 
                    <E T="03">See</E>
                     5 U.S.C. 603(b)(3). As part of the public comment process and for its final regulatory flexibility analysis under 5 U.S.C. 604, the Services will undertake that estimation process in consultation with the Office of Advocacy. This deregulatory action would not impose projected reporting, recordkeeping, or other compliance activities. 
                    <E T="03">See</E>
                     5 U.S.C. 603(b)(4). No other agency actions duplicate, overlap, or conflict with this deregulatory action. 
                    <E T="03">See</E>
                     5 U.S.C. 603(b)(5). Finally, by eliminating a legally incorrect definition of “harm” under the Endangered Species Act, this proposed rule, if adopted, would be deregulatory and would benefit small entities impacted by the Endangered Species Act. The alternative to this proposed deregulatory action is the status quo, which does not need to be analyzed. 
                    <E T="03">See</E>
                     5 U.S.C. 603(c).
                </P>
                <HD SOURCE="HD1">National Environmental Policy Act</HD>
                <P>
                    We are analyzing this proposed rule in accordance with the National Environmental Policy Act (NEPA, 42 U.S.C. 4321 
                    <E T="03">et seq.</E>
                    ), the Department of the Interior regulations on Implementation of the National Environmental Policy Act (43 CFR 46.10-46.450), the Department of the Interior Manual (516 DM 8), the NOAA Administrative Order 216-6A, and the NOAA Companion Manual (CM), “Policy and Procedures for Compliance with the National Environmental Policy Act and Related Authorities” (effective January 13, 2017).
                </P>
                <P>
                    We are proposing to undertake this revision because we believe it is compelled by the best reading of the statutory text. As such, we believe that “the proposed agency action is a nondiscretionary action with respect to which such agency does not have authority to take environmental factors into consideration in determining whether to take the proposed action” (42 U.S.C. 4336(a)(4); 
                    <E T="03">see Dep't of Transp.</E>
                     v. 
                    <E T="03">Pub. Citizen,</E>
                     541 U.S. 752, 766-70 (2004)). In the alternative, we believe that the proposed regulation changes are within a category of actions that the Department of the Interior and NOAA have each found have no significant individual or cumulative effect on the quality of the human environment and are therefore excluded from the requirement to prepare an environmental assessment or an environmental impact statement, specifically, the Department of the Interior categorical exclusion for “Policies, directives, regulations, and guidelines: that are of an administrative, financial, legal, technical, or procedural nature; or whose environmental effects are too broad, speculative, or conjectural to lend themselves to meaningful analysis and will later be subject to the NEPA process, either collectively or case-by-case” (43 CFR 46.210(i)), and the NOAA categorical exclusion for “[P]reparation of policy directives, rules, regulations, and guidelines of an administrative, financial, legal, technical, or procedural nature, or for which the environmental effects are too broad, speculative, or conjectural to lend themselves to meaningful analysis and will be subject later to the NEPA 
                    <PRTPAGE P="16105"/>
                    process, either collectively or on a case-by-case basis” (CM Appendix E, G7).
                </P>
                <P>
                    In this regard, we note that the two recent proposed and final rulemakings addressing a regulatory definition of “habitat” under the Endangered Species Act found that these categorical exclusions applied. 
                    <E T="03">See Endangered and Threatened Wildlife and Plants; Regulations for Listing Endangered and Threatened Species and Designating Critical Habitat,</E>
                     87 FR 37757, June 24, 2022; 
                    <E T="03">Endangered and Threatened Wildlife and Plants; Regulations for Listing Endangered and Threatened Species and Designating Critical Habitat,</E>
                     86 FR 59353, October 27, 2021; 
                    <E T="03">Endangered and Threatened Wildlife and Plants; Regulations for Listing Endangered and Threatened Species and Designating Critical Habitat,</E>
                     85 FR 81411, December 16, 2020); 
                    <E T="03">Endangered and Threatened Wildlife and Plants; Regulations for Listing Endangered and Threatened Species and Designating Critical Habitat,</E>
                     85 FR 47333, August 5, 2020).
                </P>
                <P>We are continuing to consider the extent to which our proposed regulation changes may have a significant effect on the human environment or fall within one of the categorical exclusions for actions that have no individual or cumulative significant effect on the quality of the human environment. We invite the public to comment on these or any other aspects of the NEPA analyses of these revisions. We will complete our analysis in accordance with NEPA and applicable regulations before finalizing this proposed rule.</P>
                <HD SOURCE="HD1">Endangered Species Act</HD>
                <P>
                    In developing this proposed rule, the Services are acting in their unique statutory role as administrators of the Act and are engaged in a legal exercise of interpreting the standards of the Act. The Services' promulgation of rules that govern their implementation of the Act is not an action that is in itself subject to the Act's provisions, including section 7(a)(2). The Services have a historical practice of issuing their general implementing regulations under the ESA without undertaking section 7 consultation. Given the plain language, structure, and purposes of the ESA, we find that Congress never intended to place a consultation obligation on the Services' promulgation of implementing regulations under the Act. In contrast to actions in which we have acted principally as an “action agency” in implementing the Act to propose or take a specific action (
                    <E T="03">e.g.,</E>
                     issuance of section 10 permits and actions under statutory authorities other than the ESA), here the Services are carrying out an action that is at the very core of their unique statutory role as administrators—promulgating general implementing regulations or revisions to those regulations that interpret the terms and standards of the Act.
                </P>
                <HD SOURCE="HD1">Authority</HD>
                <P>
                    We issue this proposed rule under the authority of the Endangered Species Act, as amended (16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ).
                </P>
                <LSTSUB>
                    <HD SOURCE="HED">List of Subjects</HD>
                    <CFR>50 CFR Part 17</CFR>
                    <P>Endangered and threatened species, Exports, Imports, Plants, Reporting and recordkeeping requirements, Transportation, Wildlife.</P>
                    <CFR>50 CFR Part 222</CFR>
                    <P>Administrative practice and procedure, Endangered and threatened species, Exports, Reporting and recordkeeping requirements, Transportation.</P>
                </LSTSUB>
                <HD SOURCE="HD1">Proposed Regulation Promulgation</HD>
                <P>For the reasons set out in the preamble, we hereby propose to amend part 17 of chapter I and part 222 of chapter II, title 50 of the Code of Federal Regulations, as set forth below:</P>
                <PART>
                    <HD SOURCE="HED">PART 17—ENDANGERED AND THREATENED WILDLIFE AND PLANTS</HD>
                </PART>
                <AMDPAR>1. The authority citation for part 17 continues to read as follows:</AMDPAR>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P> 16 U.S.C. 1361-1407; 1531-1544; and 4201-4245, unless otherwise noted.</P>
                </AUTH>
                <SUBPART>
                    <HD SOURCE="HED">Subpart A—Introduction and General Provisions</HD>
                    <SECTION>
                        <SECTNO>§ 17.3</SECTNO>
                        <SUBJECT>[Amended]</SUBJECT>
                    </SECTION>
                </SUBPART>
                <AMDPAR>2. Amend § 17.3 by removing the definition for “Harm”.</AMDPAR>
                <PART>
                    <HD SOURCE="HED">PART 222—GENERAL ENDANGERED AND THREATENED MARINE SPECIES</HD>
                </PART>
                <AMDPAR>3. The authority citation for part 222 continues to read as follows:</AMDPAR>
                <AUTH>
                    <HD SOURCE="HED">Authority:</HD>
                    <P>
                         16 U.S.C. 1531 
                        <E T="03">et seq.;</E>
                         16 U.S.C. 742a 
                        <E T="03">et seq.</E>
                         Section 222.403 also issued under 16 U.S.C. 1361 
                        <E T="03">et seq.</E>
                    </P>
                </AUTH>
                <SUBPART>
                    <HD SOURCE="HED">Subpart A—Introduction and General Provisions</HD>
                    <SECTION>
                        <SECTNO>§ 222.102</SECTNO>
                        <SUBJECT>[Amended]</SUBJECT>
                    </SECTION>
                </SUBPART>
                <AMDPAR>4. Amend § 222.102 by removing the definition for “Harm”.</AMDPAR>
                <SIG>
                    <NAME>Maureen Foster,</NAME>
                    <TITLE>Chief of Staff,  Exercising the Delegated Authority of the Assistant Secretary for Fish and Wildlife and Parks, Department of the Interior.</TITLE>
                    <NAME>Laura Grimm,</NAME>
                    <TITLE>Chief of Staff,  Exercising the Delegated Authority of the Under Secretary of Commerce for Oceans and Atmosphere and NOAA Administrator, Department of Commerce.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06746 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4333-15-P; 3510-22-P</BILCOD>
        </PRORULE>
    </PRORULES>
    <VOL>90</VOL>
    <NO>73</NO>
    <DATE>Thursday, April 17, 2025</DATE>
    <UNITNAME>Notices</UNITNAME>
    <NOTICES>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="16106"/>
                <AGENCY TYPE="F">COMMISSION ON CIVIL RIGHTS</AGENCY>
                <SUBJECT>Notice of Public Meeting of the South Carolina Advisory Committee to the U.S. Commission on Civil Rights</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Commission on Civil Rights.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of public meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Notice is hereby given, pursuant to the provisions of the rules and regulations of the U.S. Commission on Civil Rights (Commission) and the Federal Advisory Committee Act, that the South Carolina Advisory Committee (Committee) to the U.S. Commission on Civil Rights will hold a public business meeting via Zoom at 11 a.m. ET on Wednesday, May 7, 2025.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Wednesday, May 7, 2025, from 11 a.m.-12:30 p.m. Eastern Time.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The meeting will be held via Zoom Webinar.</P>
                    <P>
                        <E T="03">Registration Link (Audio/Visual): https://www.zoomgov.com/webinar/register/WN_7jlpojIGRSK36tq-xZbbEA.</E>
                    </P>
                    <P>
                        <E T="03">Join by Phone (Audio Only):</E>
                         (833) 435-1820 USA Toll-Free; Meeting ID: 161 777 7599.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Victoria Moreno, Designated Federal Officer, at 
                        <E T="03">vmoreno@usccr.gov</E>
                         or (434) 515-0204.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    This Committee meeting is available to the public through the registration link above. Any interested members of the public may attend this meeting. An open comment period will be provided to allow members of the public to make oral statements as time allows. Pursuant to the Federal Advisory Committee Act, public minutes of the meeting will include a list of persons who are present at the meeting. If joining via phone, callers can expect to incur regular charges for calls they initiate over wireless lines, according to their wireless plan. The Commission will not refund any incurred charges. Callers will incur no charge for calls they initiate over land-line connections to the toll-free telephone number. Closed captioning is available by selecting “CC” in the meeting platform. To request additional accommodations, please email 
                    <E T="03">svillanueva@usccr.gov</E>
                     at least 10 business days prior to the meeting.
                </P>
                <P>
                    Members of the public are entitled to submit written comments; the comments must be received in the regional office within 30 days following the scheduled meeting. Written comments may be emailed to Sarah Villanueva at 
                    <E T="03">svillanueva@usccr.gov.</E>
                     Persons who desire additional information may contact the Regional Programs Coordination Unit at 1-202-809-9618.
                </P>
                <P>
                    Records generated from this meeting may be inspected and reproduced at the Regional Programs Coordination Unit Office, as they become available, both before and after the meeting. Records of the meetings will be available via the file sharing website, 
                    <E T="03">https://bit.ly/3YnhKJx.</E>
                     Persons interested in the work of this Committee are directed to the Commission's website, 
                    <E T="03">http://www.usccr.gov,</E>
                     or may contact the Regional Programs Coordination Unit at 
                    <E T="03">svillanueva@usccr.gov.</E>
                </P>
                <HD SOURCE="HD1">Agenda</HD>
                <FP SOURCE="FP-2">I. Welcome &amp; Roll Call</FP>
                <FP SOURCE="FP-2">II. Civil Rights Discussion</FP>
                <FP SOURCE="FP-2">III. Public Comment</FP>
                <FP SOURCE="FP-2">IV. Next Steps</FP>
                <FP SOURCE="FP-2">V. Adjournment</FP>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>David Mussatt,</NAME>
                    <TITLE>Supervisory Chief, Regional Programs Unit.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06567 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">COMMISSION ON CIVIL RIGHTS</AGENCY>
                <SUBJECT>Notice of Public Meeting of the Indiana Advisory Committee to the U.S. Commission on Civil Rights</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Commission on Civil Rights.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of public meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Notice is hereby given, pursuant to the provisions of the rules and regulations of the U.S. Commission on Civil Rights (Commission) and the Federal Advisory Committee Act, that the Indiana Advisory Committee (Committee) to the U.S. Commission on Civil Rights will hold a public business meeting via Zoom at 1 p.m. Eastern Time on Thursday, May 15, 2025.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Thursday, May 15, 2025, from1 p.m.-2:30 p.m. Eastern Time.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The meeting will be held via Zoom Webinar.</P>
                    <P>
                        <E T="03">Registration Link (Audio/Visual): https://www.zoomgov.com/webinar/register/WN_eHIbBUskS4SdfonR9ImY7Q.</E>
                    </P>
                    <P>
                        <E T="03">Join by Phone (Audio Only):</E>
                         (833) 435-1820 USA Toll-Free; Meeting ID: 161 712 4203.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Ana Victoria Fortes, Designated Federal Officer, at 
                        <E T="03">afortes@usccr.gov</E>
                         or (202) 681-0857.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    This Committee meeting is available to the public through the registration link above. Any interested members of the public may attend this meeting. An open comment period will be provided to allow members of the public to make oral statements as time allows. Pursuant to the Federal Advisory Committee Act, public minutes of the meeting will include a list of persons who are present at the meeting. If joining via phone, callers can expect to incur regular charges for calls they initiate over wireless lines, according to their wireless plan. The Commission will not refund any incurred charges. Callers will incur no charge for calls they initiate over land-line connections to the toll-free telephone number. Closed captioning is available by selecting “CC” in the meeting platform. To request additional accommodations, please email 
                    <E T="03">svillanueva@usccr.gov</E>
                     at least 10 business days prior to the meeting.
                </P>
                <P>
                    Members of the public are entitled to submit written comments; the comments must be received in the regional office within 30 days following the scheduled meeting. Written comments may be emailed to Sarah Villanueva at 
                    <E T="03">svillanueva@usccr.gov.</E>
                     Persons who desire additional information may contact the Regional Programs Coordination Unit at 1-202-809-9618.
                </P>
                <P>
                    Records generated from this meeting may be inspected and reproduced at the Regional Programs Coordination Unit Office, as they become available, both before and after the meeting. Records of the meetings will be available via the 
                    <PRTPAGE P="16107"/>
                    file sharing website, 
                    <E T="03">https://bit.ly/47mDPeL.</E>
                     Persons interested in the work of this Committee are directed to the Commission's website, 
                    <E T="03">http://www.usccr.gov,</E>
                     or may contact the Regional Programs Coordination Unit at 
                    <E T="03">svillanueva@usccr.gov.</E>
                </P>
                <HD SOURCE="HD1">Agenda</HD>
                <FP SOURCE="FP-2">I. Welcome, Roll Call, and Announcements</FP>
                <FP SOURCE="FP-2">II. Project Timeline</FP>
                <FP SOURCE="FP-2">III. Debrief Testimony</FP>
                <FP SOURCE="FP-2">IV. Monday.com Forms</FP>
                <FP SOURCE="FP-2">V. Report Format</FP>
                <FP SOURCE="FP-2">VI. Next Steps</FP>
                <FP SOURCE="FP-2">VII. Adjournment</FP>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>David Mussatt,</NAME>
                    <TITLE>Supervisory Chief, Regional Programs Unit.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06568 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">COMMISSION ON CIVIL RIGHTS</AGENCY>
                <SUBJECT>Notice of Public Meeting of the U.S. Virgin Islands Advisory Committee; Cancellation</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Commission on Civil Rights.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; Cancellation of Meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Commission on Civil Rights published a notice in the 
                        <E T="04">Federal Register</E>
                         concerning a meeting of the U.S. Virgin Islands Advisory Committee. The meeting, scheduled for Wednesday, April 23, 2025, at 12:00 p.m. ET, has been cancelled. The notice is in the 
                        <E T="04">Federal Register</E>
                         on Monday, April 7, 2025, in FR Document Number 2025-05897 on pages 14956-14957.
                    </P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Sarah Villanueva, Support Services Specialist, at 
                        <E T="03">svillanueva@usccr.gov</E>
                         or (202) 769-2843.
                    </P>
                    <SIG>
                        <DATED>Dated: April 11, 2025.</DATED>
                        <NAME>David Mussatt,</NAME>
                        <TITLE>Supervisory Chief, Regional Programs Unit.</TITLE>
                    </SIG>
                </FURINF>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06569 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>Foreign-Trade Zones Board</SUBAGY>
                <DEPDOC>B-25-2025]</DEPDOC>
                <SUBJECT>Foreign-Trade Zone (FTZ) 45, Notification of Proposed Production Activity, SSI Shredding Systems, Inc., (Industrial Shredders and Compactors), Wilsonville and Portland, Oregon</SUBJECT>
                <P>SSI Shredding Systems, Inc. submitted a notification of proposed production activity to the FTZ Board (the Board) for its facilities in Wilsonville and Portland, Oregon within Subzone 45J. The notification conforming to the requirements of the Board's regulations (15 CFR 400.22) was received on April 11, 2025.</P>
                <P>
                    Pursuant to 15 CFR 400.14(b), FTZ production activity would be limited to the specific foreign-status material(s)/component(s) and specific finished product(s) described in the submitted notification (summarized below) and subsequently authorized by the Board. The benefits that may stem from conducting production activity under FTZ procedures are explained in the background section of the Board's website—accessible via 
                    <E T="03">www.trade.gov/ftz.</E>
                </P>
                <P>The proposed finished products include: customized industrial shredding machines; customized industrial compactor machines; industrial cutting blades; drive shafts; spacers; drive assemblies; hydraulic units; steel frame weldments; bearing assemblies; machined steel parts for shredders and compactors; gears; hoppers; hoods; guards; shields; screens; platforms; and, cleaning fingers (duty rate—free).</P>
                <P>The proposed foreign-status materials/components include: alloy steel blanks for cutting blades; hydraulic cylinders; steel frame weldments; steel blanks for structural framing; heavy wall round steel tubing; steel round bar; steel rectangular bar; tapered roller bearings; and, spherical roller bearings (duty rate—free or 5.8%). The request indicates that certain materials/components are subject to duties under section 1702(a)(1)(B) of the International Emergency Economic Powers Act (section 1702), section 232 of the Trade Expansion Act of 1962 (section 232) and/or section 301 of the Trade Act of 1974 (section 301), depending on the country of origin. The applicable section 1702, section 232 and section 301 decisions require subject merchandise to be admitted to FTZs in privileged foreign (PF) status (19 CFR 146.41). The request also indicates that certain bearings are subject to an antidumping/countervailing duty (AD/CVD) order/investigation if imported from China. The Board's regulations (15 CFR 400.13(c)(2)) require that merchandise subject to AD/CVD orders, or items which would be otherwise subject to suspension of liquidation under AD/CVD procedures if they entered U.S. customs territory, be admitted to the zone in PF status.</P>
                <P>
                    Public comment is invited from interested parties. Submissions shall be addressed to the Board's Executive Secretary and sent to: 
                    <E T="03">ftz@trade.gov.</E>
                     The closing period for their receipt is May 27, 2025.
                </P>
                <P>A copy of the notification will be available for public inspection in the “Online FTZ Information System” section of the Board's website.</P>
                <P>
                    For further information, contact Diane Finver at 
                    <E T="03">Diane.Finver@trade.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: April 14, 2025.</DATED>
                    <NAME>Elizabeth Whiteman,</NAME>
                    <TITLE>Executive Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06575 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>International Trade Administration</SUBAGY>
                <DEPDOC>[A-570-188, A-557-832]</DEPDOC>
                <SUBJECT>Float Glass Products From the People's Republic of China and Malaysia: Postponement of Preliminary Determinations in the Less-Than-Fair-Value Investigations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Enforcement and Compliance, International Trade Administration, Department of Commerce.</P>
                </AGY>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicable April 17, 2025.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Dmitry Vladimirov (the People's Republic of China (China)) and Jeffrey Pedersen (Malaysia), AD/CVD Operations, Enforcement and Compliance, International Trade Administration, U.S. Department of Commerce, 1401 Constitution Avenue NW, Washington, DC 20230; telephone: (202) 482-0665 and (202) 482-2769, respectively.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On January 8, 2025, the U.S. Department of Commerce (Commerce) initiated the less-than-fair-value (LTFV) investigations on imports of float glass products from China and Malaysia.
                    <SU>1</SU>
                    <FTREF/>
                     The preliminary determinations are currently due no later than May 20, 2025.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         
                        <E T="03">See Float Glass Products from the People's Republic of China and Malaysia: Initiation of Less-Than-Fair-Value Investigation,</E>
                         90 FR 1435 (January 8, 2025).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Postponement of Preliminary Determinations</HD>
                <P>
                    Section 733(b)(1)(A) of the Tariff Act of 1930, as amended (the Act), requires Commerce to issue the preliminary determination in an LTFV investigation within 140 days after the date on which Commerce initiated the investigation. However, section 733(c)(1)(A) of the Act 
                    <PRTPAGE P="16108"/>
                    permits Commerce to postpone the preliminary determination until no later than 190 days after the date on which Commerce initiated the investigation if: (A) the petitioner makes a timely request for a postponement; or (B) Commerce concludes that the parties concerned are cooperating, that the investigation is extraordinarily complicated, and that additional time is necessary to make a preliminary determination. Under 19 CFR 351.205(e), the petitioner must submit a request for postponement 25 days or more before the scheduled date of the preliminary determination and must state the reasons for the request. Commerce will grant the request unless it finds compelling reasons to deny the request.
                </P>
                <P>
                    On March 31, 2025, Vitro Flat Glass, LLC and Vitro Meadville Flat Glass, LLC. (the petitioner) submitted a timely request that Commerce postpone the preliminary determinations in these LTFV investigations.
                    <SU>2</SU>
                    <FTREF/>
                     The petitioner stated that it requests postponement to ensure that Commerce has sufficient time to review and consider the information provided in questionnaire responses and allow the petitioner time to submit rebuttal factual information or otherwise comment on the adequacy of any questionnaire responses.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Petitioner's Letter, “Request to Extend Preliminary Determinations,” dated March 31, 2025.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    For the reasons stated above and because there are no compelling reasons to deny the request, Commerce is postponing the deadline for the preliminary determinations by 50 days, 
                    <E T="03">i.e.,</E>
                     190 days after the date on which these investigations were initiated, in accordance with section 733(c)(1)(A) of the Act. As a result, Commerce will issue its preliminary determinations no later than July 9, 2025. In accordance with section 735(a)(1) of the Act and 19 CFR 351.210(b)(1), the deadline for the final determinations of these investigations will continue to be 75 days after the date of the preliminary determinations, unless postponed at a later date.
                </P>
                <HD SOURCE="HD1">Notification to Interested Parties</HD>
                <P>This notice is issued and published pursuant to section 733(c)(2) of the Act and 19 CFR 351.205(f)(1).</P>
                <SIG>
                    <DATED>Dated: April 7, 2025.</DATED>
                    <NAME>Christopher Abbott,</NAME>
                    <TITLE>Deputy Assistant Secretary for Policy and Negotiations, performing the non-exclusive functions and duties of the Assistant Secretary for Enforcement and Compliance.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06585 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-DS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>[RTID 0648-XE853]</DEPDOC>
                <SUBJECT>Council Coordination Committee; Public Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of public meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The New England Fishery Management Council (NEFMC) will host a hybrid meeting of the Council Coordination Committee (CCC) consisting of eight Regional Fishery Management Council (RFMC) chairs, vice chairs, and executive directors and its subcommittees from May 13, 2025 to May 15, 2025. The intent of this meeting is to discuss issues of relevance to the Councils and NMFS, including issues related to the implementation of the Magnuson-Stevens Fishery Conservation and Management Reauthorization Act (MSA), other topics of concern to the RFMCs, and decisions and follow-up activities.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This meeting will be held from Tuesday, May 13, 2025 to Thursday, May 15, 2025. Registration for the meeting will be from 3 p.m. to 7 p.m. EDT on Monday, May 12, 2025. The meeting will begin at 1 p.m. EDT on Tuesday, May 13, 2025, and recess at 5 p.m. or when business is complete. The meeting will reconvene at 9:30 a.m. EDT on Wednesday, May 16, 2025 until 5 p.m. or when business is complete. The meeting will reconvene at 9:30 a.m. EDT on Thursday, May 15, 2025 and adjourn whenever business is complete.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>This meeting will be held at the Whaling Museum, 18 Johnny Cake Hill, New Bedford, MA 02740; telephone: (508) 997-0046.</P>
                    <P>
                        Webinar registration URL information: 
                        <E T="03">https://nefmc-org.zoom.us/webinar/register/WN_FqaIDqI6S5iI5aHzQZLHdw</E>
                        .
                    </P>
                    <P>
                        <E T="03">Council address:</E>
                         New England Fishery Management Council, 50 Water Street, Mill 2, Newburyport, MA 01950; telephone (978) 465-0492; 
                        <E T="03">www.nefmc.org</E>
                        .
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Cate O'Keefe, Executive Director, New England Fishery Management Council; telephone: (978) 465-0492, ext. 113.; email: 
                        <E T="03">cokeefe@nefmc.org</E>
                        .
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The Magnuson-Stevens Fishery Conservation and Management Act (MSA) and 2007 Reauthorization Act (MSRA) established the CCC by amending section 302 (16 U.S.C. 1852) of the MSA. The Committee consists of the chairs, vice chairs, and executive directors of each of the eight Regional Fishery Management Councils authorized by the MSA, or their proxies, other Council members or staff. All sessions are open to the public and time will be set aside for public comments at the end of each day and after specific sessions at the discretion of the meeting Chair. The meeting Chair will announce public comment times and instructions to provide comments at the start of each meeting day. There will be opportunities for public comments to be provided in-person and remotely via webinar. Updates to this meeting, briefing materials, public comment instructions, and additional information will be posted when available at 
                    <E T="03">https://www.fisherycouncils.org/ccc-meetings/may-2025</E>
                    .
                </P>
                <HD SOURCE="HD1">Agenda</HD>
                <HD SOURCE="HD2">Monday, May 12, 2025; 3 p.m.-7 p.m.</HD>
                <P>• Meeting Registration: Harbor Hotel Lobby.</P>
                <HD SOURCE="HD2">Tuesday, May 13, 2025; 1 p.m.-5 p.m.</HD>
                <P>• Welcome and Introductions;</P>
                <P>• Council round robin of current issues;</P>
                <P>• NOAA Fisheries Update and FY 25/26 Priorities;</P>
                <P>• Executive Orders Update; and</P>
                <P>• Public Comment.</P>
                <P>Adjourn for the day.</P>
                <HD SOURCE="HD2">Wednesday, May 14, 2025; 9:30 a.m.-5 p.m.</HD>
                <P>• NOAA Fisheries Science Updates;</P>
                <P>• Budget;</P>
                <P>• NEPA Update;</P>
                <P>• Discussion on Priorities and Future Planning;</P>
                <P>• Legislative Outlook;</P>
                <P>• Draft Policy and Guidance: National Marine Sanctuaries Act Section 304(a)(5); International Fisheries Issues; and</P>
                <P>• Public Comment.</P>
                <P>Adjourn for the day.</P>
                <HD SOURCE="HD2">Thursday, May 15, 2025; 9:30 a.m.-12:30 p.m.</HD>
                <P>
                    • Scientific Coordination Subcommittee (SCS);
                    <PRTPAGE P="16109"/>
                </P>
                <P>• CMOD Workshop Recap;</P>
                <P>• CCC Workgroups/Subcommittees;</P>
                <P>• 2026 CCC Meetings; and</P>
                <P>• Other Business and Wrap-Up.</P>
                <P>The timing and order in which agenda items are addressed may change as required to effectively address the issues. The CCC will meet as late as necessary to complete scheduled business.</P>
                <P>Although non-emergency issues not contained in the meeting agenda may be discussed, those issues may not be the subject of formal action during these meetings. Action will be restricted to those issues specifically listed in this document and any issues arising after publication of this document that require emergency action under section 305 (c) of the Magnuson-Stevens Fishery Conservation and Management Act, provided the public has been notified of the intent to take final action to address the emergency.</P>
                <P>The public also should be aware that the meeting will be recorded and a transcript prepared. Consistent with 16 U.S.C. 1852, a copy of the recording is available upon request.</P>
                <HD SOURCE="HD1">Special Accommodations</HD>
                <P>
                    The meeting is physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aids should be directed to Cate O'Keefe (see 
                    <E T="02">ADDRESSES</E>
                    ) at least 5 days prior to the meeting date.
                </P>
                <P>
                    <E T="03">Authority:</E>
                     16 U.S.C. 1801 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: April 14, 2025.</DATED>
                    <NAME>Rey Israel Marquez,</NAME>
                    <TITLE>Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06626 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>RTID 0648-XE839]</DEPDOC>
                <SUBJECT>Mid-Atlantic Fishery Management Council (MAFMC); Public Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; public meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Mid-Atlantic Fishery Management Council's Spiny Dogfish Monitoring Committee will hold a public webinar meeting.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        The meeting will be held on Friday, May 2, 2025, from 8 a.m. to 10 a.m. For agenda details, see 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                        .
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The meeting will be held via webinar. Connection information and any related materials will be posted to the MAFMC's website calendar prior to the meeting at 
                        <E T="03">www.mafmc.org.</E>
                    </P>
                    <P>
                        <E T="03">Council address:</E>
                         Mid-Atlantic Fishery Management Council, 800 N. State Street, Suite 201, Dover, DE 19901; telephone: (302) 674-2331; 
                        <E T="03">www.mafmc.org.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Christopher M. Moore, Ph.D., Executive Director, Mid-Atlantic Fishery Management Council, telephone: (302) 526-5255.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The Spiny Dogfish Monitoring Committee will meet to develop recommendations regarding alternatives and analyses for a framework action that is considering modifications to payback accountability measures when spiny dogfish annual catch limits (ACLs) are exceeded. More information on this framework action is available at 
                    <E T="03">https://www.mafmc.org/actions/spiny-dogfish-accountability-measures-fw.</E>
                     Public comments will also be taken.
                </P>
                <HD SOURCE="HD1">Special Accommodations</HD>
                <P>The meeting is physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aid should be directed to Shelley Spedden, (302) 526-5251, at least 5 days prior to the meeting date.</P>
                <P>
                    <E T="03">Authority:</E>
                     16 U.S.C. 1801 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>Rey Israel Marquez,</NAME>
                    <TITLE>Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06553 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>[RTID 0648-XE828]</DEPDOC>
                <SUBJECT>Endangered and Threatened Species; Initiation of 5-Year Reviews for Six Foreign Elasmobranch Species</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; request for information.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        NMFS announces the initiation of 5-year reviews of six foreign elasmobranch species: Argentine angelshark (
                        <E T="03">Squatina argentina</E>
                        ), spiny angelshark (
                        <E T="03">S. guggenheim</E>
                        ), narrownose smoothhound shark (
                        <E T="03">Mustelus schmitti</E>
                        ), striped smoothhound shark (
                        <E T="03">M. fasciatus</E>
                        ), common guitarfish (
                        <E T="03">Rhinobatos rhinobatos</E>
                        ), and blackchin guitarfish (
                        <E T="03">R. cemciculus</E>
                        ). The Endangered Species Act (ESA) requires us to conduct a review of listed species at least once every 5 years to determine whether a species should be removed from the list (
                        <E T="03">i.e.,</E>
                         delisted), reclassified from an endangered species to a threatened species (
                        <E T="03">i.e.,</E>
                         downlisted), or reclassified from a threatened species to an endangered species (
                        <E T="03">i.e.,</E>
                         uplisted). The determination must be based on the best scientific and commercial data available at the time of the review. Therefore, we request relevant data (
                        <E T="03">e.g.,</E>
                         biology, threats, and conservation efforts) that have become available since the previous reviews of these species.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>To allow us adequate time to conduct the 5-year reviews, we must receive your information no later than September 15, 2025. While we accept new information about any listed species at any time, information received after the date stated above may not be considered for these reviews.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit your information electronically via the Federal eRulemaking Portal. Go to 
                        <E T="03">https://www.regulations.gov</E>
                         and enter NOAA-NMFS-2025-0033 in the Search box. Click the “Comment” icon, complete the required fields, and enter or attach your comments.
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         We may not consider comments or information sent by another method, to another address or individual, or received after the date stated above. All comments and information received are a part of the public record, and we will post the comments for public viewing on 
                        <E T="03">https://www.regulations.gov.</E>
                         All personal identifying information (
                        <E T="03">e.g.,</E>
                         name, address, 
                        <E T="03">etc.</E>
                        ) submitted voluntarily by the sender will be publicly accessible. Do not submit confidential business information or otherwise sensitive or protected information. We will accept anonymous comments. Enter “N/A” in the required fields to remain anonymous.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Jennifer Schultz, Office of Protected Resources, 301-427-8443, 
                        <E T="03">jennifer.schultz@noaa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    We are initiating the 5-year reviews of six foreign elasmobranch species, including three endangered species (Argentine angelshark, spiny angelshark, and striped smoothhound shark) and three threatened species (narrownose smoothhound shark, common guitarfish, and blackchin guitarfish). Section 4(c)(2) of the ESA requires us to conduct a review of listed species at least once 
                    <PRTPAGE P="16110"/>
                    every 5 years to determine whether species should be removed from the list, changed in status from an endangered species to a threatened species, or changed in status from a threatened species to an endangered species (16 U.S.C. 1533(c)(2)). Section 4(a)(1) of the ESA requires us to determine whether any species is an endangered or threatened species because of any of the following factors: (A) the present or threatened destruction, modification, or curtailment of its habitat or range; (B) overutilization for commercial, recreational, scientific, or educational purposes; (C) disease or predation; (D) the inadequacy of existing regulatory mechanisms; or (E) other natural or manmade factors affecting its continued existence (16 U.S.C. 1533(a)(1)). Section 4(b)(1)(A) of the ESA requires us to make the determination based solely on the best scientific and commercial data available at the time of the review and after taking into account efforts to protect the species (16 U.S.C. 1533(b)(1)(A)). Regulations (50 CFR 424.21) require us to publish a notice in the 
                    <E T="04">Federal Register</E>
                     announcing species under active review.
                </P>
                <P>
                    In 2015, we published status reviews of the Argentine angelshark, spiny angelshark, striped smoothhound shark, and narrownose smoothhound shark. In 2017, we published a status review of the common and blackchin guitarfishes. These status reviews and additional information on the species are available on NMFS' website: 
                    <E T="03">https://www.fisheries.noaa.gov/national/endangered-species-conservation/foreign-species.</E>
                     After reviewing information available since the publication of these status reviews, we will make our determinations regarding the classification of these species and publish them on NMFS' website. Any recommended changes (
                    <E T="03">i.e.,</E>
                     delistings and/or reclassifications) would require a separate rulemaking process.
                </P>
                <HD SOURCE="HD1">Public Solicitation of Relevant Information</HD>
                <P>To ensure that the 5-year reviews are based on the best scientific and commercial data available, we are soliciting information from the public, governmental agencies, Tribes, the scientific community, industry, environmental organizations, and other interested parties. We request information that has become available since the previous reviews were published in 2015 (Argentine and spiny angelsharks and striped and narrownose smoothhound sharks) and 2017 (common and blackchin guitarfishes). Categories of requested information include: (1) species biology including, but not limited to, abundance, population trends, demographics, distribution, and diversity; (2) habitat conditions including, but not limited to, amount, distribution, suitability, and important features for conservation; (3) degree, nature, and trends of threats to the species and its habitats, especially those factors described in section 4(a)(1) of the ESA; (4) conservation efforts that have been implemented to benefit the species, including monitoring data demonstrating the effectiveness of such efforts; and (5) other information, data, or corrections including taxonomic or nomenclatural changes and improved analytical methods for evaluating extinction risk.</P>
                <P>
                    We request that all information be accompanied by supporting documentation such as maps, bibliographic references, or reprints of pertinent publications. Please submit all information and supporting documentation electronically (see 
                    <E T="02">ADDRESSES</E>
                     section).
                </P>
                <P>
                    <E T="03">Authority:</E>
                     16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: April 14, 2025.</DATED>
                    <NAME>Kimberly Damon-Randall,</NAME>
                    <TITLE>Director, Office of Protected Resources, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06590 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>[RTID 0648-XE817]</DEPDOC>
                <SUBJECT>Reopening of Nominations for the Western and Central Pacific Fisheries Commission Permanent Advisory Committee</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of request for nominations; reopening of solicitation for nominations.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        NMFS is reopening the solicitation announced on January 21, 2025, in the 
                        <E T="04">Federal Register</E>
                        , for nominations (which may include self-nominations) to the Advisory Committee to the U.S. Section to the Permanent Advisory Committee (PAC) as established under the Western and Central Pacific Fisheries Convention (WCPFC) Implementation Act (Act). The PAC, composed of individuals from groups concerned with the fisheries covered by the Western and Central Pacific Fisheries Convention (Convention), provides recommendations to the U.S. Commissioners to the Western and Central Pacific Fisheries Commission (Commission) regarding the deliberations and decisions of the Commission.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>NMFS is reopening the solicitation for nominations announced on January 21, 2025 (90 FR 7080). Nominations must be received by Wednesday, April 30, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Nominations, including a letter of interest and a resume or curriculum vitae, should be sent via email to Katrina Poremba at 
                        <E T="03">pir.wcpfc@noaa.gov.</E>
                         Include in the subject line the nomination for a position as an Advisory Committee member. The following information should be included in the nomination documents: (1) full name, address, telephone, and email address of nominee; (2) nominee's organization(s) or professional affiliation(s) serving as the basis for the nomination, if any; and (3) a background statement, not to exceed one page in length, describing the nominee's qualifications, experience and interests, specifically as related to the fisheries covered by the Convention.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Katrina Poremba, NMFS Pacific Islands Regional Office; 1845 Wasp Blvd., Bldg. 176, Honolulu, HI 96818; email: 
                        <E T="03">pir.wcpfc@noaa.gov;</E>
                         phone: (808) 725-5096.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">The Convention and the Commission</HD>
                <P>The objective of the Convention is to ensure, through effective management, the long-term conservation and sustainable use of highly migratory fish stocks in the western and central Pacific Ocean in accordance with the United Nations Convention on the Law of the Sea of 10 December 1982 (UNCLOS) and the Agreement for the Implementation of the Provisions of the UNCLOS Relating to the Conservation and Management of Straddling Fish Stocks and Highly Migratory Fish Stocks. The Convention establishes the Commission, the secretariat of which is based in Pohnpei, Federated States of Micronesia.</P>
                <P>The Convention applies to all highly migratory fish stocks (defined as all fish stocks of the species listed in Annex I of the UNCLOS occurring in the Convention Area, and such other species of fish as the Commission may determine), except sauries.</P>
                <P>
                    The United States actively supported the negotiations and the development of the Convention and signed the Convention when it was opened for signature in 2000. It participated as a 
                    <PRTPAGE P="16111"/>
                    cooperating non-member of the Commission since it became operational in 2005. The United States became a Contracting Party to the Convention and a full member of the Commission when it ratified the Convention in January 2007. Under the Act (16 U.S.C. 6901 
                    <E T="03">et seq.</E>
                    ), the United States is to be represented on the Commission by five U.S. Commissioners, appointed by the President.
                </P>
                <HD SOURCE="HD1">Permanent Advisory Committee</HD>
                <P>The Act provides in section 6902(d) that the Secretary of Commerce, in consultation with the U.S. Commissioners to the Commission, will appoint individuals as members of the advisory committee established under the Act, referred to here as the PAC.</P>
                <P>The appointed members of the Permanent Advisory Committee are to include not less than 15 nor more than 20 individuals selected from the various groups concerned with the fisheries covered by the Convention, providing, to the extent practicable, an equitable balance among such groups. On behalf of the Secretary of Commerce, NMFS is now seeking nominations for these appointments.</P>
                <P>In addition to the 15-20 appointed members, the Permanent Advisory Committee includes the chair of the Western Pacific Fishery Management Council's Advisory Committee (or designee), and officials of the fisheries management authorities of American Samoa, Guam, and the Commonwealth of the Northern Mariana Islands (or their designees).</P>
                <P>Members of the Permanent Advisory Committee will be invited to attend all non-executive meetings of the U.S. Commissioners to the Commission and at such meetings will be given the opportunity to examine and be heard on all proposed programs of investigation, reports, recommendations, and regulations of the Commission. Members of the Permanent Advisory Committee are also invited to participate in meetings of the Western and Central Pacific Fisheries Commission, as members of the United States' delegation.</P>
                <P>Each appointed member of the Permanent Advisory Committee will serve for a term of 2 years and is eligible for reappointment. This request for nominations is for the term to begin on August 3, 2025, and is for a term of 2 consecutive years.</P>
                <P>All members of the Advisory Committee are appointed in their individual professional capacity and undergo a background screening. Any individual appointed to the Committee who is unable to attend all or part of an Advisory Committee meeting may not appoint another person to attend such meetings as their proxy. Nominees should be able to fulfill the time and travel commitments required to participate in the Committee's meeting(s). The meetings are normally two to three days long and can be held virtually or in Honolulu, Hawaii.</P>
                <P>The Secretaries of Commerce and State will furnish the Permanent Advisory Committee with relevant information concerning fisheries and international fishery agreements.</P>
                <P>NMFS, on behalf of the Secretary of Commerce, will provide to the Permanent Advisory Committee administrative and technical support services as are necessary for its effective functioning.</P>
                <P>Appointed members of the Permanent Advisory Committee will serve without pay, but while away from their homes or regular places of business in the performance of services for the advisory committee will be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under 5 U.S.C. 5703. They will not be considered Federal employees while performing service as members of the advisory committee except for the purposes of injury compensation or tort claims liability as provided in chapter 81 of title 5 and chapter 171 of title 28.</P>
                <HD SOURCE="HD1">Procedure for Submitting Nominations</HD>
                <P>
                    Nominations for the Permanent Advisory Committee should be submitted to NMFS (see 
                    <E T="02">ADDRESSES</E>
                    ). This request for nominations is for first-time nominees as well as previous and current Permanent Advisory Committee members. Self-nominations are acceptable. Nominations should include a letter of interest and a resume or curriculum vitae that covers the following information: (1) full name, address, telephone, and email address of nominee; (2) nominee's organization(s) or professional affiliation(s) serving as the basis for the nomination, if any; and (3) a background statement, not to exceed one page in length, describing the nominee's qualifications, experience and interests, specifically as related to the fisheries covered by the Convention. For those who have submitted a nomination in response to the initial solicitation, 90 FR 7080, those nominations will still count towards consideration for the next PAC term, August 2025 through August 2027. The solicitation period for nominations has been reopened as a result of either not receiving a sufficient number of nominations and/or meeting an equitable balance among groups.
                </P>
                <P>
                    <E T="03">Authority:</E>
                     16 U.S.C. 6902.
                </P>
                <SIG>
                    <DATED>Dated: April 14, 2025.</DATED>
                    <NAME>Kelly Denit,</NAME>
                    <TITLE>Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06586 Filed 4-14-25; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>[RTID 0648-XE834]</DEPDOC>
                <SUBJECT>Magnuson-Stevens Act Provisions; General Provisions for Domestic Fisheries; Application for Exempted Fishing Permits</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Assistant Regional Administrator for Sustainable Fisheries, Greater Atlantic Region, NMFS, has made a preliminary determination that an Exempted Fishing Permit (EFP) application contains all of the required information and warrants further consideration. The EFP would allow federally permitted fishing vessels to fish outside fishery regulations in support of exempted fishing activities proposed by the Gloucester Marine Genomics Institute. Regulations under the Magnuson-Stevens Fishery Conservation and Management Act and the Atlantic Coastal Fisheries Cooperative Management Act require publication of this notification to provide interested parties the opportunity to comment on applications for proposed EFPs.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before August 1, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit written comments by the following method:</P>
                    <P>
                        • 
                        <E T="03">Email: nmfs.gar.efp@noaa.gov.</E>
                         Include in the subject line “GMGI 2025 Lobster Genomics EFP”.
                    </P>
                    <P>
                        All comments received are a part of the public record and will generally be posted for public viewing without change. All personal identifying information (
                        <E T="03">e.g.,</E>
                         name, address), confidential business information, or otherwise sensitive information submitted voluntarily by the sender will be publicly accessible. NMFS will accept anonymous comments (enter “anonymous” as the signature if you wish to remain anonymous).
                    </P>
                </ADD>
                <FURINF>
                    <PRTPAGE P="16112"/>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Caroline Potter, Fishery Resource Management Specialist, 
                        <E T="03">Caroline.Potter@noaa.gov,</E>
                         (978) 281-9325.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Gloucester Marine Genomics Institute submitted a complete application for an EFP to conduct commercial fishing activities that the regulations would otherwise restrict. This EFP would exempt the participating vessels from the following Federal regulations:</P>
                <GPOTABLE COLS="3" OPTS="L2,nj,i1" CDEF="xs90,r100,r100">
                    <TTITLE>Table 1—Requested Exemptions</TTITLE>
                    <BOXHD>
                        <CHED H="1">CFR citation</CHED>
                        <CHED H="1">Regulation</CHED>
                        <CHED H="1">Need for exemption</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">50 CFR 697.20(c)(2)</ENT>
                        <ENT>Lobster Mutilation</ENT>
                        <ENT>Landing legs from ovigerous female lobsters.</ENT>
                    </ROW>
                </GPOTABLE>
                <GPOTABLE COLS="2" OPTS="L2,nj,p1,8/9,i1" CDEF="s70,r200">
                    <TTITLE>Table 2—Project Summary</TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Project title</ENT>
                        <ENT>Genomic population structure of American lobster in U.S. waters for stock delineation.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Project start</ENT>
                        <ENT>06/01/2025.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Project end</ENT>
                        <ENT>01/31/2026.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Project objectives</ENT>
                        <ENT>To assess spatial stock structure and signals of natural selection of American lobster.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Project location</ENT>
                        <ENT>Statistical Areas 515, 562, 526, 537, 616, and 611.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Number of vessels</ENT>
                        <ENT>Up to 7.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Number of trips</ENT>
                        <ENT>Approximately 7.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Trip duration (days)</ENT>
                        <ENT>3.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Total number of days</ENT>
                        <ENT>Approximately 21.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Gear type(s)</ENT>
                        <ENT>Lobster pots.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Number of tows or sets</ENT>
                        <ENT>30 per trip.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Duration of tows or sets</ENT>
                        <ENT>1 day.</ENT>
                    </ROW>
                </GPOTABLE>
                <HD SOURCE="HD1">Project Narrative</HD>
                <P>This project would assess spatial stock structure and signals of natural selection of American lobster by using a population genomics approach. The intention is for the project to assist in improving management unit delineations for lobster in the Gulf of Maine, Georges Bank, and Southern New England regions. To achieve this, the project sets four aims: (1) improve the chromosome-level reference genome assembly for the American lobster; (2) build collaborative partnerships with commercial lobstermen and regional lobster biologists by collecting lobster tissue samples from locations throughout U.S. waters and one Canadian location; (3) assess genetic population structure and interpret responses to regional and environmental conditions recorded within the genome; and (4) disseminate results to the Atlantic States Marine Fisheries Commission's American Lobster Technical Committee to improve stock delineations and management strategies.</P>
                <P>While the overall project targets 21 locations in state and Federal waters, this EFP only includes vessels fishing at 7 of these locations of which 6 would be in Federal waters and 1 would be in Long Island Sound. At each of the seven locations, fishermen would fish for lobster using standard lobster pots, which would be configured and set consistent with offshore lobster fishing practices. This fishing activity is planned to be conducted as part of the fishermen's regular fishing activity. Legal lobsters that are harvested during the trips would be landed for sale. For each late-stage egg-bearing female, the fishermen would remove for collection the smallest walking leg. After recording carapace length and latitude and longitude, the female would be released. A maximum of 280 samples would be collected from across the 7 locations, with a target sample size of 25 at each location. One trip would be taken for each location with each trip lasting three days.</P>
                <P>If approved, the applicant may request minor modifications and extensions to the EFP throughout the year. EFP modifications and extensions may be granted without further notice if they are deemed essential to facilitate completion of the proposed research and have minimal impacts that do not change the scope or impact of the initially approved EFP request. Any fishing activity conducted outside the scope of the exempted fishing activity would be prohibited.</P>
                <P>
                    <E T="03">Authority:</E>
                     16 U.S.C. 1801 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: April 14, 2025.</DATED>
                    <NAME>Kelly Denit,</NAME>
                    <TITLE>Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06588 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>[RTID 0648-XE825]</DEPDOC>
                <SUBJECT>Fisheries of the South Atlantic; Southeast Data, Assessment, and Review (SEDAR); Public Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of SEDAR 90 South Atlantic Red Snapper Post Data Workshop Webinar 1.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The SEDAR 90 assessment process of South Atlantic Red Snapper will consist of a Data Workshop, and a series of assessment webinars, and a Review Workshop. See 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                        .
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The SEDAR 90 Post Data Workshop Webinar 1 will be held on Monday, May 12, 2025, from 10 a.m. to 12 p.m. The established times may be adjusted as necessary to accommodate the timely completion of discussion relevant to the assessment process. Such adjustments may result in the meeting being extended from or completed prior to the time established by this notice.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P/>
                    <P>
                        <E T="03">Meeting address:</E>
                         The meeting will be held via webinar. The webinar is open to members of the public. Registration for the webinar is available by contacting the SEDAR coordinator via email at 
                        <E T="03">Emily.Ott@safmc.net</E>
                        .
                        <PRTPAGE P="16113"/>
                    </P>
                    <P>
                        <E T="03">SEDAR address:</E>
                         4055 Faber Place Drive, Suite 201, North Charleston, SC 29405.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Emily L. Ott, SEDAR Coordinator; (937) 479-6171; email: 
                        <E T="03">Emily.Ott@safmc.net</E>
                        .
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Gulf, South Atlantic, and Caribbean Fishery Management Councils, in conjunction with NMFS and the Atlantic and Gulf States Marine Fisheries Commissions have implemented the Southeast Data, Assessment and Review (SEDAR) process, a multi-step method for determining the status of fish stocks in the Southeast Region. SEDAR is a multi-step process including: (1) Data/Assessment Workshop, and (2) a series of webinars. The product of the Data/Assessment Workshop is a report which compiles and evaluates potential datasets and recommends which datasets are appropriate for assessment analyses, and describes the fisheries, evaluates the status of the stock, estimates biological benchmarks, projects future population conditions, and recommends research and monitoring needs. Participants for SEDAR Workshops are appointed by the Gulf, South Atlantic, and Caribbean Fishery Management Councils and NMFS Southeast Regional Office, Highly Migratory Species (HMS) Management Division, and Southeast Fisheries Science Center. Participants include data collectors and database managers; stock assessment scientists, biologists, and researchers; constituency representatives including fishermen, environmentalists, and NGO's; International experts; and staff of Councils, Commissions, and state and federal agencies.</P>
                <P>The items of discussion in the SEDAR 90 Post Data Workshop Webinar1 are as follows:</P>
                <P>• Review any data issues remaining.</P>
                <P>• Finalize any data decisions remaining.</P>
                <P>• Continue discussion on modelling issues and decisions.</P>
                <P>Although non-emergency issues not contained in this agenda may come before this group for discussion, those issues may not be the subject of formal action during this meeting. Action will be restricted to those issues specifically identified in this notice and any issues arising after publication of this notice that require emergency action under section 305(c) of the Magnuson-Stevens Fishery Conservation and Management Act, provided the public has been notified of the intent to take final action to address the emergency.</P>
                <HD SOURCE="HD1">Special Accommodations</HD>
                <P>
                    The meeting is physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aids should be directed to the Council office (see 
                    <E T="02">ADDRESSES</E>
                    ) at least 5 business days prior to each workshop.
                </P>
                <NOTE>
                    <HD SOURCE="HED">Note:</HD>
                    <P> The times and sequence specified in this agenda are subject to change.</P>
                </NOTE>
                <P>
                    <E T="03">Authority:</E>
                     16 U.S.C. 1801 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: April 14, 2025.</DATED>
                    <NAME>Rey Israel Marquez,</NAME>
                    <TITLE>Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06627 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>[RTID 0648-XE824]</DEPDOC>
                <SUBJECT>Marine Mammals; File No. 27552</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice; issuance of permit.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Notice is hereby given that a permit has been issued to NMFS' Pacific Islands Fisheries Science Center, 1845 Wasp Boulevard, Building 176, Honolulu, HI 96818 (Responsible Party: Michelle Barbieri, D.V.M.) to conduct research and enhancement activities on Hawaiian monk seals (
                        <E T="03">Neomonachus schauinslandi</E>
                        ).
                    </P>
                </SUM>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The permit and related documents are available for review upon written request via email to 
                        <E T="03">NMFS.Pr1Comments@noaa.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sara Young or Shasta McClenahan, Ph.D., (301) 427-8401.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    On November 8, 2024, notice was published in the 
                    <E T="04">Federal Register</E>
                     (89 FR 88736) that a request for a permit to conduct research and enhancement activities had been submitted by the above-named applicant. The requested permit was issued on April 9, 2025, under the Marine Mammal Protection Act of 1972, as amended (MMPA; 16 U.S.C. 1361 
                    <E T="03">et seq.</E>
                    ), the regulations governing the taking and importing of marine mammals (50 CFR part 216), the Endangered Species Act of 1973, as amended (ESA; 16 U.S.C. 1531 
                    <E T="03">et seq.</E>
                    ), and the regulations governing the taking, importing, and exporting of endangered and threatened species (50 CFR parts 222 through 226).
                </P>
                <P>
                    The permit authorizes the applicant to carry out research and enhancement activities to recover the endangered Hawaiian monk seal along beaches and nearshore waters throughout the Hawaiian Archipelago (Northwestern Hawaiian Islands and main Hawaiian Islands) and Johnston Atoll. Research will identify impediments to recovery, inform the design of conservation interventions, and evaluate those measures. Research activities include visual and photographic monitoring, capture, tagging, pelage marking, health screening, foraging studies, deworming, necropsies, tissue sampling, behavioral modification, vocalization studies, and vaccination. Enhancement activities are designed to improve survival, reproductive success, and overall species' status. Enhancement activities include deworming, capture, translocation, hazing and removal of aggressive adult male seals, disentangling, dehooking, medical treatment, behavioral modification, vaccination, and supplemental feeding of post-release rehabilitated seals. Unintentional mortalities during research and enhancement activities are requested. Unintentional disturbance of spinner dolphins (
                    <E T="03">Stenella longirostris</E>
                    ) and bottlenose dolphins (
                    <E T="03">Tursiops truncatus</E>
                    ) during research and enhancement activities is also requested. See the application for complete numbers of animals requested by species, age-class, and procedure. Pinniped parts may be collected, received, exported, and imported for analysis. The permit is valid through December 31, 2029.
                </P>
                <P>
                    In compliance with the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
                    <E T="03">et seq.</E>
                    ), a final determination has been made that the activity proposed is categorically excluded from the requirement to prepare an environmental assessment or environmental impact statement.
                </P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>Julia M. Harrison,</NAME>
                    <TITLE>Chief, Permits and Conservation Division, Office of Protected Resources, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06579 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="16114"/>
                <AGENCY TYPE="S">DEPARTMENT OF COMMERCE</AGENCY>
                <SUBAGY>National Oceanic and Atmospheric Administration</SUBAGY>
                <DEPDOC>[RTID 0648-XE845]</DEPDOC>
                <SUBJECT>Gulf Fishery Management Council; Public Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Marine Fisheries Service (NMFS), National Oceanic and Atmospheric Administration (NOAA), Commerce.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of a public meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Gulf Fishery Management Council (Gulf Council) will hold a one day in-person meeting of its Ecosystem Technical Committee (ETC).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The meeting will take place Friday, May 9, 2025, from 8:30 a.m. to 4:30 p.m., EDT.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The in-person meeting will take place at the Gulf Council office. Registration information will be available on the Council's website by visiting 
                        <E T="03">www.gulfcouncil.org</E>
                         and clicking on the ETC meeting on the calendar.
                    </P>
                    <P>
                        <E T="03">Council address:</E>
                         Gulf Council, 4107 W Spruce Street, Suite 200, Tampa, FL 33607; telephone: (813) 348-1630.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Dr. Verena Wang, Ecosystem Analyst, Gulf Council; 
                        <E T="03">verena.wang@gulfcouncil.org,</E>
                         telephone: (813) 348-1630.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Friday, May 9, 2025, 8:30 a.m.-4:30 p.m., EDT</HD>
                <P>The meeting will begin with Introductions of Members, Adoption of Agenda, and Scope of Work. The Committee will review and discuss the Gulf Fishery Ecosystem Plan (FEP) Status Review and Inflation Reduction Act project update and the Pilot Fishery Ecosystem Issue: Red Tide; including presentations and background materials.</P>
                <P>The committee will discuss next steps to develop and operationalize the Gulf FEP and receive an update on Ecosystem Status Reports for the Gulf.</P>
                <P>Lastly, the committee will receive Public Comment and discuss any Other Business items.</P>
                <FP SOURCE="FP-1">—Meeting Adjourns</FP>
                <P>
                    The meeting will also be broadcast via webinar. You may register for the webinar by visiting 
                    <E T="03">www.gulfcouncil.org</E>
                     and clicking on the Technical Committee meeting on the calendar. The Agenda is subject to change, and the latest version along with other meeting materials will be posted on 
                    <E T="03">www.gulfcouncil.org</E>
                     as they become available.
                </P>
                <P>Although other non-emergency issues not on the agenda may come before the Technical Committee for discussion, in accordance with the Magnuson-Stevens Fishery Conservation and Management Act, those issues may not be the subject of formal action during this meeting. Actions of the Technical Committee will be restricted to those issues specifically identified in the agenda and any issues arising after publication of this notice that require emergency action under Section 305(c) of the Magnuson-Stevens Fishery Conservation and Management Act, provided the public has been notified of the Council's intent to take-action to address the emergency.</P>
                <HD SOURCE="HD1">Special Accommodations</HD>
                <P>The meeting is physically accessible to people with disabilities. Requests for sign language interpretation or other auxiliary aid should be directed to Kathy Pereira, (813) 348-1630, at least 5 days prior to the meeting date.</P>
                <P>
                    <E T="03">Authority:</E>
                     16 U.S.C. 1801 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: April 14, 2025.</DATED>
                    <NAME>Rey Israel Marquez,</NAME>
                    <TITLE>Acting Deputy Director, Office of Sustainable Fisheries, National Marine Fisheries Service.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06625 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3510-22-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF DEFENSE</AGENCY>
                <SUBAGY>Department of the Army, Corps of Engineers</SUBAGY>
                <SUBJECT>Proposals by Non-Federal Interests for Inclusion in the Annual Report to Congress on Future Water Resources Development</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Army Corps of Engineers, Army, Department of Defense.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Acting Assistant Secretary of the Army for Civil Works (ASA(CW)) is soliciting proposals for inclusion in the 2026 Annual Report to Congress on Future Water Resources Development (Annual Report). The Annual Report includes proposals submitted by non-federal interests for new feasibility studies, proposed modifications to authorized water resources development projects or feasibility studies, and proposed modifications to environmental infrastructure program authorities. The Annual Report is authorized under Section 7001 of the Water Resources Reform and Development Act (WRRDA) of 2014, as amended.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Proposals must be submitted by August 15, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit proposals by emailing the completed proposal form to 
                        <E T="03">WRRDA7001Proposal@usace.army.mil.</E>
                         If a different method of submission is required, use the further information below to arrange an alternative submission process.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For further information about the Annual Report, visit the U.S. Army Corps of Engineers (USACE) Headquarters website (
                        <E T="03">https://www.usace.army.mil/Missions/Civil-Works/Project-Planning/WRRDA-7001-Proposals/</E>
                        ), email 
                        <E T="03">WRRDA7001Proposal@usace.army.mil,</E>
                         or call Jerica Richardson, Planning and Policy Division, Headquarters, USACE, Washington, DC at 213-259-5661.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">A. Background on the Annual Report</HD>
                <P>The Annual Report to Congress on Future Water Resources Development (33 U.S.C. 2282d) provides an opportunity for communities to inform Congress about their interest in a new congressional authorization—or modifying an existing authorization—for specifically authorized Civil Works water resources studies, projects, and environmental infrastructure programs. The Annual Report provides Congress with a list of potential studies and projects to newly authorize and a list of existing study, project, and environmental infrastructure program authorities to modify. Congress generally authorizes new USACE studies, projects, and environmental infrastructure programs in an omnibus authorization bill, typically called the Water Resources Development Act (WRDA).</P>
                <P>
                    If a proposal from a non-federal interest for a new study authorization is included in the Annual Report, it is anticipated that authorization would be for the study, not for construction. To begin a water resources feasibility study, USACE must have sufficient study authority, and funds must be appropriated and made available for the federal cost share of the feasibility study. A primary outcome of a USACE water resources feasibility study is a recommendation for Congressional authorization to construct a water resources project. For USACE to proceed to construction, the project must be authorized for construction by Congress, and funds must be appropriated and made available for project construction. An overview of USACE Civil Works water resources study and project processes is found in the document entitled “Partnering with the U.S. Army Corps of Engineers: A Guide for Communities, Local Governments, States, Tribes, and Non-
                    <PRTPAGE P="16115"/>
                    Governmental Organizations,” which is available online at 
                    <E T="03">https://planning.erdc.dren.mil/toolbox/library/IWRServer/2019-R-02.pdf.</E>
                </P>
                <HD SOURCE="HD1">B. Definition of Non-Federal Interest</HD>
                <P>Proposals for the Annual Report are submitted by non-federal interests, and each feasibility study or project is conducted in partnership with a non-federal interest. For the purposes of the Annual Report, the term “non-federal interest” is defined in Section 221(b) of the Flood Control Act of 1970 (Pub. L. 91-611), as amended (42 U.S.C. 1962-5b(b)). The term “non-federal interest” means (1) a legally constituted public body (including an Indian tribe and a Tribal organization (as those terms are defined in section 5304 of title 25)) and an inter-tribal consortium (as defined in section 3202 of title 25); or (2) a nonprofit entity with the consent of the affected local government, that has full authority and capability to perform the terms of its agreement and to pay damages, if necessary, in the event of failure to perform.</P>
                <HD SOURCE="HD1">C. Proposal Form</HD>
                <P>
                    The information for proposals from a non-federal interest is normally entered into a fillable PDF form which can be found at the HQ Annual Report website and submitted by email to 
                    <E T="03">WRRDA7001Proposal@usace.army.mil.</E>
                     If a different method of submission is needed, use the contact information in the 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                     section of this Notice to arrange an alternative submission process. Proposals must be submitted by August 15, 2025.
                </P>
                <P>The fillable PDF proposal form requests the following information:</P>
                <P>1. Contact information for the individual/agency submitting the proposal: name, phone number, email.</P>
                <P>2. Proposal Name.</P>
                <P>3. Project Location (State(s)/Territory).</P>
                <P>4. Study or project area map; you'll have the option to upload a map of the study/project area (preferred format is an 8.5″ x 11″ PDF).</P>
                <P>5. Specific project purpose(s) of the proposed study or modification (USACE mission areas).</P>
                <P>6. Project description: demonstrate the proposal is related to USACE missions and authorities and why additional or new authorization is needed.</P>
                <P>7. State if this proposal is for a new feasibility study, a modification to a USACE water resources development feasibility study authority, a modification to a USACE water resources project authority, or a modification to a USACE environmental infrastructure program authority.</P>
                <P>
                    8. If the proposal is for a modification to an existing authority, provide the name of the authorized study, project, or environmental infrastructure program. Cite the authority (
                    <E T="03">e.g.,</E>
                     section of WRDA) if possible.
                </P>
                <P>9. If the proposal is for a modification to an environmental infrastructure program authority, provide a brief description of the assistance provided to date and total federal cost of assistance provided to date.</P>
                <P>10. Provide an estimate, to the extent practicable, of the total cost, and the federal and non-federal share of those costs, of the proposed study and, separately, an estimate of the cost of construction or modification.</P>
                <P>11. Describe, to the extent applicable and practicable, an estimate of the anticipated monetary and non-monetary benefits of the proposal regarding benefits to the protection of human life and property and improvement to transportation, the national, regional, or local economy, the environment, or the national security interests of the United States.</P>
                <P>12. The name of the non-federal interest planning to act as the sponsor, or all non-federal interests in the case of a modification to an environmental infrastructure program authority, including any non-federal interest that has contributed to or is expected to contribute toward the non-federal share of the proposed feasibility study or modification.</P>
                <P>13. A statement of support from each associated non-federal interest. Optional: attach letter(s) of support by others. Letters may be addressed generically to the U.S. Army Corps of Engineers, the local Corps District office, or the Assistant Secretary of the Army of Civil Works office.</P>
                <P>14. State if the non-federal interest has the financial ability to provide for the required cost share.</P>
                <P>15. State if there is local support for the proposal, and (optional) describe the local support.</P>
                <P>
                    A complete list of information requested on the proposal form is available on the USACE Headquarters Annual Report web page: 
                    <E T="03">https://www.usace.army.mil/Missions/Civil-Works/Project-Planning/WRRDA-7001-Proposals/.</E>
                </P>
                <P>The information provided in a proposal will be included in the Annual Report or posted to the Headquarters public website for the Annual Report. Therefore, any information that is Confidential Business Information, information that should not be disclosed because of statutory restrictions, or any other information that a non-federal interest would not want to appear publicly should not be included in the proposal.</P>
                <HD SOURCE="HD1">D. Evaluation Criteria</HD>
                <P>All proposals submitted within the time frame set forth in this notice will be considered for inclusion in the 2026 Annual Report to Congress on Future Water Resources Development. To be included in the Annual Report table, the proposals must meet all the following five criteria established by Congress:</P>
                <P>1. The proposal is related to USACE missions and authorities. The proposal must involve a proposed or existing USACE water resources project or effort where the primary purpose is flood and/or coastal storm damage reduction, commercial navigation, aquatic ecosystem restoration, or municipal or agricultural water supply. Proposals for recreation or hydropower are eligible for inclusion if undertaken in conjunction with one of the primary purposes described in this paragraph. For the purposes of this criterion, environmental infrastructure proposals will also be considered “related to USACE missions and authorities.”</P>
                <P>2. The proposal requires specific Congressional authorization, including by an Act of Congress.</P>
                <P>3. The proposal has not been previously authorized by Congress.</P>
                <P>4. The proposal has not been included in the Annual Report table of any previous Annual Report to Congress on Future Water Resources Development.</P>
                <P>5. The proposal, if authorized, could be carried out by USACE.</P>
                <P>The purpose of the five criteria is, primarily, to determine if a proposal will require Congressional authorization for USACE to undertake the proposed water resources study or project with the non-federal interest.</P>
                <P>
                    Environmental infrastructure proposals are an exception to the criteria. To be included in the table within the Annual Report, a proposal must identify a programmatic modification to an environmental infrastructure assistance program that was not included in any previous Annual Report. Additional information and frequently asked questions on the five criteria are available on the USACE Headquarters Annual Report web page: 
                    <E T="03">https://www.usace.army.mil/Missions/Civil-Works/Project-Planning/WRRDA-7001-Proposals/.</E>
                </P>
                <HD SOURCE="HD1">E. Contents of the Annual Report</HD>
                <P>
                    The Annual Report will be transmitted to Congress by the ASA(CW) and posted to the USACE Headquarters website at 
                    <E T="03">
                        https://
                        <PRTPAGE P="16116"/>
                        www.usace.army.mil/Missions/Civil-Works/Project-Planning/WRRDA-7001-Proposals/.
                    </E>
                </P>
                <P>1. The Annual Report will include a certification by the ASA(CW) stating that each proposal included in the Annual Report meets the five criteria established by Congress or the requirements for proposed modifications to environmental infrastructure program authorities.</P>
                <P>2. Signed Chief's Reports recommending authorization of a water resources project will be included in the Annual Report table by the ASA(CW); these proposals should not be submitted in response to this notice.</P>
                <P>3. Section 902 of WRDA 1986, as amended, (33 U.S.C. 2280) establishes a maximum authorized cost for water resources projects (also known as the 902 limit). A post authorization change report is required to be completed to support potential modifications to the project authority, including updates to authorized project costs. Completed post authorization change reports recommending modifications to the authorization of a water resources project will be included in the Annual Report table by the ASA(CW); these proposals should not be submitted in response to this notice.</P>
                <P>4. Proposals that do not meet all five criteria established by Congress or the requirements for proposed modifications to environmental infrastructure program authorities will be included in an appendix table included in the Annual Report to Congress on Future Water Resources Development. Proposals in the appendix table will include a description of why those proposals did not meet the criteria established by Congress.</P>
                <HD SOURCE="HD1">F. Sources of More Information</HD>
                <P>The following are sources of more information for the Annual Report and the proposal submittal and evaluation process:</P>
                <P>
                    1. USACE will host two public virtual information sessions about the Annual Report and the proposal submission and evaluation process for the 2026 Annual Report on June 26, 2025, and August 7, 2025. The Headquarters website (
                    <E T="03">https://www.usace.army.mil/Missions/Civil-Works/Project-Planning/WRRDA-7001-Proposals/</E>
                    ) contains additional information and frequently asked questions about the Annual Report.
                </P>
                <P>
                    2. The local USACE district office will assist in researching and identifying existing Congressional authorities for Civil Works water resources feasibility studies, projects, and environmental infrastructure programs. Websites for all USACE district offices are available online at: 
                    <E T="03">https://www.usace.army.mil/Contact/Unit-websites/.</E>
                </P>
                <SIG>
                    <NAME>D. Lee Forsgren,</NAME>
                    <TITLE>Acting Assistant Secretary of the Army (Civil Works).</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06578 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 3720-58-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF EDUCATION</AGENCY>
                <DEPDOC>[Docket No.: ED-2025-SCC-0018]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Submission to the Office of Management and Budget for Review and Approval; Comment Request; Part D Discretionary Grant Application—Individuals With Disabilities Education Act</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Special Education and Rehabilitative Services (OSERS), Department of Education (ED).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>In accordance with the Paperwork Reduction Act (PRA) of 1995, the Department is proposing an extension without change of a currently approved information collection request (ICR).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Interested persons are invited to submit comments on or before May 19, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for proposed information collection requests should be submitted within 30 days of publication of this notice. Click on this link 
                        <E T="03">www.reginfo.gov/public/do/PRAMain</E>
                         to access the site. Find this information collection request (ICR) by selecting “Department of Education” under “Currently Under Review,” then check the “Only Show ICR for Public Comment” checkbox. 
                        <E T="03">Reginfo.gov</E>
                         provides two links to view documents related to this information collection request. Information collection forms and instructions may be found by clicking on the “View Information Collection (IC) List” link. Supporting statements and other supporting documentation may be found by clicking on the “View Supporting Statement and Other Documents” link.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>For specific questions related to collection activities, please contact Darcalyn Darling, (202) 245-6372.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Department is especially interested in public comment addressing the following issues: (1) is this collection necessary to the proper functions of the Department; (2) will this information be processed and used in a timely manner; (3) is the estimate of burden accurate; (4) how might the Department enhance the quality, utility, and clarity of the information to be collected; and (5) how might the Department minimize the burden of this collection on the respondents, including through the use of information technology. Please note that written comments received in response to this notice will be considered public records.</P>
                <P>
                    <E T="03">Title of Collection:</E>
                     Part D Discretionary Grant Application—Individuals with Disabilities Education Act.
                </P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     1820-0028.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension without change of a currently approved ICR.
                </P>
                <P>
                    <E T="03">Respondents/Affected Public:</E>
                     State, Local, and Tribal Governments.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Responses:</E>
                     800.
                </P>
                <P>
                    <E T="03">Total Estimated Number of Annual Burden Hours:</E>
                     21,200.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     The collection of information (Part D Discretionary Grant Application—Individuals with Disabilities Education Act) is necessary to ensure that potential applicants provide the information necessary for the Department of Education to ascertain the eligibility of the applicant and determine the programmatic responsiveness and technical quality of the application. Under the Individuals with Disabilities Education Act discretionary grants are authorized to support technology, State personnel development, personnel preparation, parent training and information, and technical assistance activities. In making competitive grant awards under this collection, applicants shall use the SF-424 series and those forms and instructions prescribed by the Secretary. The Individuals with Disabilities Education Act, which provides the programmatic authority for this collection, requires that grant awards under these programs be made through competition. This discretionary grant falls under the Streamlined clearance process for Discretionary Grant Information Collections, 1894-0001. Therefore, the 30-day public comment period notice will be the only public comment notice published for this information collection.
                </P>
                <SIG>
                    <NAME>Ross Santy,</NAME>
                    <TITLE>Chief Data Officer, Office of Planning, Evaluation and Policy Development.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06572 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4000-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="16117"/>
                <AGENCY TYPE="N">DEPARTMENT OF ENERGY</AGENCY>
                <SUBJECT>Environmental Management Site-Specific Advisory Board, Oak Ridge</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Environmental Management, Department of Energy.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of open meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This notice announces an in-person/virtual meeting of the Environmental Management Site-Specific Advisory Board (EM SSAB), Oak Ridge. The Federal Advisory Committee Act requires that public notice of this meeting be announced in the 
                        <E T="04">Federal Register</E>
                        .
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Wednesday, May 14, 2025; 6-8 p.m. EDT.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Department of Energy (DOE) Information Center, Office of Science and Technical Information, 1 Science.gov Way, Oak Ridge, Tennessee 37831. This meeting will be held in-person at the DOE Information Center and virtually. To receive the virtual access information, please send an email to: 
                        <E T="03">orssab@orem.doe.gov</E>
                         at least two days prior to the meeting.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Melyssa P. Noe, Deputy Designated Federal Officer, U.S. Department of Energy, Oak Ridge Office of Environmental Management (OREM), P.O. Box 2001, EM-942, Oak Ridge, TN 37831; Phone (865) 241-3315; or Email: 
                        <E T="03">Melyssa.Noe@orem.doe.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Purpose of the Board:</E>
                     The purpose of the Board is to provide advice and recommendations concerning the following EM site-specific issues: clean-up activities and environmental restoration; waste and nuclear materials management and disposition; excess facilities; future land use and long-term stewardship. The Board may also be asked to provide advice and recommendations on other EM program components. The Board also provides an avenue to fulfill public participation requirements outlined in the National Environmental Policy Act (NEPA), the Comprehensive Environmental Response, Compensation, and Liability Act (CERLA), the Resource Conservation and Recovery Act (RCRA), Federal Facility Agreements, Consent Orders, Consent Decrees and Settlement Agreements.
                </P>
                <P>
                    <E T="03">Tentative Agenda:</E>
                     (agenda topics are subject to change; please email 
                    <E T="03">orssab@orem.doe.gov</E>
                     for the most current agenda).
                </P>
                <FP SOURCE="FP-1">○ OREM Presentation to the Board</FP>
                <FP SOURCE="FP-1">○ Discussion</FP>
                <FP SOURCE="FP-1">○ Public Comment Period</FP>
                <FP SOURCE="FP-1">○ Board Business</FP>
                <P>
                    <E T="03">Public Participation:</E>
                     The meeting is open to the public and public comment can be given orally or in writing. Fifteen minutes are allocated during the meeting for public comment and those wishing to make oral comment will be given a minimum of two minutes to speak. Written comments received at least two working days prior to the meeting will be provided to the members and included in the meeting minutes. Written comments received within two working days after the meeting will be included in the minutes. For additional information on public comment and to submit written comment, please email 
                    <E T="03">orssab@orem.doe.gov.</E>
                     The EM SSAB, Oak Ridge, welcomes the attendance of the public at its meetings and will make every effort to accommodate persons with physical disabilities or special needs. If you require special accommodations due to a disability, please contact Melyssa P. Noe at least seven days in advance of the meeting.
                </P>
                <P>
                    <E T="03">Meeting conduct:</E>
                     The Designated Federal Officer is empowered to conduct the meeting in a fashion that will facilitate the orderly conduct of business. Questioning of board members or presenters by the public is not permitted.
                </P>
                <P>
                    <E T="03">Minutes:</E>
                     Minutes will be available at the following website: 
                    <E T="03">https://www.energy.gov/orem/listings/oak-ridge-site-specific-advisory-board-meetings.</E>
                </P>
                <P>
                    <E T="03">Signing Authority:</E>
                     This document of the Department of Energy was signed on April 10, 2025, by David Borak, Committee Management Officer, pursuant to delegated authority from the Secretary of Energy. That document with the original signature and date is maintained by DOE. For administrative purposes only, and in compliance with requirements of the Office of the Federal Register, the undersigned DOE Federal Register Liaison Officer has been authorized to sign and submit the document in electronic format for publication, as an official document of the Department of Energy. This administrative process in no way alters the legal effect of this document upon publication in the 
                    <E T="04">Federal Register</E>
                    .
                </P>
                <SIG>
                    <DATED>Signed in Washington, DC, on April 11, 2025.</DATED>
                    <NAME>Treena V. Garrett,</NAME>
                    <TITLE>Federal Register Liaison Officer, U.S. Department of Energy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06489 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6450-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <SUBJECT>Combined Notice of Filings #1</SUBJECT>
                <P>Take notice that the Commission received the following electric rate filings:</P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER22-1546-001.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Tampa Electric Company.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Compliance filing: Order No. 881 Compliance Filing to be effective N/A.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5112.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER22-2360-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Tri-State Generation and Transmission Association, Inc.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Motion for Deferral of the Effective Date for the Open Access Transmission Tariff revisions of Tri-State Generation and Transmission Association, Inc.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     3/21/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250321-5101.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 4/25/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1128-001.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     PJM Interconnection, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: Response to Deficiency—Replacement Generation Interconnection Service to be effective 12/31/9998.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5180.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1448-001.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Entergy Louisiana, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: ELL-Lafayette Amended System Interconnection Agreement to be effective 5/1/2025.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5181.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1930-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Virginia Electric and Power Company.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Virginia Electric and Power submits revisions to OATT Attachment H16-C to be effective 6/13/2025.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5001.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1931-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     New York Independent System Operator, Inc.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Request for waiver of New York Independent System Operator, Inc.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/10/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250410-5214.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/1/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1932-000.
                    <PRTPAGE P="16118"/>
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Puget Sound Energy, Inc.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Gold Bar IA with SnoPUD to be effective 5/16/2025.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5068.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1933-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     ITC Energy Solutions LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Filing of Facilities Service Agreement and Request for Waiver to be effective 6/11/2025.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5073.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1934-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Duke Energy Florida, LLC, Duke Energy Carolinas, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Duke Energy Carolinas, LLC submits tariff filing per 35.13(a)(2)(iii: DEF—Annual Update of Real Power Loss Factors (2025) to be effective 5/1/2025.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5087.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1935-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Midcontinent Independent System Operator, Inc.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: 2025-04-11_SA 3916 Termination of Ameren-Lotus Wind E&amp;P (J1289) to be effective 4/12/2025.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5116.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1936-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Midcontinent Independent System Operator, Inc.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: 2025-04-11_SA 3926 Termination of METC-Branch Solar E&amp;P (J1550) to be effective 4/12/2025.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5126.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1937-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     PJM Interconnection, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Ministerial Clean-Up Filing to Operating Agreement, Schedule 6, Section 1.5 to be effective 8/28/2024.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5130.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1938-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     MidAmerican Central California Transco, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: Cancellation of Tariff and Database to be effective 4/12/2025.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5141.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1939-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     LRE Interconnection Manager, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Shared Facilities Common Ownership Agreement to be effective 4/12/2025.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5144.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1940-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Blackford Wind Energy, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Initial Rate Filing: Certificate of Concurrence to Shared Facilities Common Ownership Agreement to be effective 4/12/2025.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5164.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1941-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     PJM Interconnection, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Original GIA, Service Agreement No. 7630; AD2-067/AG1-024/AG1-034 to be effective 3/12/2025.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5171.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1942-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     PJM Interconnection, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     § 205(d) Rate Filing: Original GIA, Service Agreement No. 7627; AG1-107/AF2-440 to be effective 3/12/2025.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5184.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    <E T="03">Docket Numbers:</E>
                     ER25-1943-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Entergy Gulf States Louisiana, L.L.C.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Tariff Amendment: ELL-Lafayette System Interconnection Agmt Cancellation to be effective 5/1/2025.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/11/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250411-5185.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 5/2/25.
                </P>
                <P>
                    The filings are accessible in the Commission's eLibrary system (
                    <E T="03">https://elibrary.ferc.gov/idmws/search/fercgensearch.asp</E>
                    ) by querying the docket number.
                </P>
                <P>Any person desiring to intervene, to protest, or to answer a complaint in any of the above proceedings must file in accordance with Rules 211, 214, or 206 of the Commission's Regulations (18 CFR 385.211, 385.214, or 385.206) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding.</P>
                <P>
                    eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: 
                    <E T="03">http://www.ferc.gov/docs-filing/efiling/filing-req.pdf.</E>
                     For other information, call (866) 208-3676 (toll free). For TTY, call (202) 502-8659.  The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, community organizations, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>Debbie Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06616 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Docket No. CP25-177-000]</DEPDOC>
                <SUBJECT>UGI LNG, Inc.; Notice of Petition for Declaratory Order</SUBJECT>
                <P>Take notice that on March 17, 2025, pursuant to Rule 207(a)(2) of the Federal Energy Regulatory Commission's (Commission) Rules of Practice and Procedure, UGI LNG, Inc. (UGI) filed a petition for declaratory order requesting the Commission issue an order stating that the construction and operation of a new liquefied natural gas (LNG) storage and trucking terminal at the Temple LNG Plant in Berks County, Pennsylvania, for the sole purpose of delivering that LNG to local gas distribution systems or directly to end users, would not be subject to the Commission's jurisdiction under the sections 3 and 7 of Natural Gas Act, 15 U.S.C. 717(b), 717(f).</P>
                <P>
                    Any person desiring to intervene or to protest this filing must file in accordance with Rules 211 and 214 of the Commission's Rules of Practice and Procedure (18 CFR 385.211, 385.214). Protests will be considered by the Commission in determining the appropriate action to be taken, but will not serve to make protestants parties to the proceeding. Any person wishing to become a party must file a notice of intervention or motion to intervene, as appropriate. Such notices, motions, or protests must be filed on or before the comment date. Anyone filing a motion 
                    <PRTPAGE P="16119"/>
                    to intervene, or protest must serve a copy of that document on the Petitioner.
                </P>
                <P>
                    The Commission encourages electronic submission of protests and interventions in lieu of paper using the “eFiling” link at 
                    <E T="03">http://www.ferc.gov.</E>
                     Persons unable to file electronically should submit an original copy of the pleading by U.S. mail to Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC 20426. Submissions by any other courier in docketed proceedings should be delivered to, Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 12225 Wilkins Avenue Rockville, Maryland 20852.
                </P>
                <P>
                    In addition to publishing the full text of this document in the 
                    <E T="04">Federal Register</E>
                    , the Commission provides all interested persons an opportunity to view and/or print the contents of this document via the internet through the Commission's Home Page (
                    <E T="03">http://www.ferc.gov</E>
                    ). From the Commission's Home Page on the internet, this information is available on eLibrary. The full text of this document is available on eLibrary in PDF and Microsoft Word format for viewing, printing, and/or downloading. To access this document in eLibrary, type the docket number excluding the last three digits of this document in the docket number field.
                </P>
                <P>
                    User assistance is available for eLibrary and the Commission's website during normal business hours from FERC Online Support at (202) 502-6652 (toll free at 1-866-208-3676) or email at 
                    <E T="03">ferconlinesupport@ferc.gov,</E>
                     or the Public Reference Room at (202) 502-8371, TTY (202) 502-8659. Email the Public Reference Room at 
                    <E T="03">public.referenceroom@ferc.gov.</E>
                </P>
                <P>
                    The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, community organizations, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. Eastern time on May 12, 2025.
                </P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06613 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Project No. 9985-039]</DEPDOC>
                <SUBJECT>Rivers Electric, LLC; Notice of Application Tendered for Filing with the Commission and Soliciting Additional Study Requests and Establishing Procedural Schedule for Relicensing and a Deadline for Submission of Final Amendments</SUBJECT>
                <P>Take notice that the following hydroelectric application has been filed with the Commission and is available for public inspection.</P>
                <P>
                    a. 
                    <E T="03">Type of Application:</E>
                     Subsequent Minor License
                </P>
                <P>
                    b. 
                    <E T="03">Project No.:</E>
                     9985-039
                </P>
                <P>
                    c. 
                    <E T="03">Date filed:</E>
                     March 31, 2025
                </P>
                <P>
                    d. 
                    <E T="03">Applicant:</E>
                     Rivers Electric, LLC (Rivers Electric)
                </P>
                <P>
                    e. 
                    <E T="03">Name of Project:</E>
                     Mill Pond Hydroelectric Project (Mill Pond Project or project)
                </P>
                <P>
                    f. 
                    <E T="03">Location:</E>
                     On Catskill Creek in Greene County, New York
                </P>
                <P>
                    g. 
                    <E T="03">Filed Pursuant to:</E>
                     Federal Power Act 16 U.S.C. 791(a)-825(r)
                </P>
                <P>
                    h. 
                    <E T="03">Applicant Contact:</E>
                     Tony Zarrella, Chief Operating Officer, Relevate Power, 230 Park Ave, Suite 447, New York, NY 10017, Phone: (315) 247-0253.
                </P>
                <P>
                    i. 
                    <E T="03">FERC Contact:</E>
                     Martha Becton at (202) 502-8335, or 
                    <E T="03">martha.becton@ferc.gov</E>
                    .
                </P>
                <P>
                    j. Cooperating agencies: Federal, state, local, and Tribal agencies with jurisdiction and/or special expertise with respect to environmental issues that wish to cooperate in the preparation of the environmental document should follow the instructions for filing such requests described in item l below. Cooperating agencies should note the Commission's policy that agencies that cooperate in the preparation of the environmental document cannot also intervene. 
                    <E T="03">See</E>
                     94 FERC ¶ 61,076 (2001).
                </P>
                <P>k. Pursuant to section 4.32(b)(7) of 18 CFR of the Commission's regulations, if any resource agency, Indian Tribe, or person believes that an additional scientific study should be conducted in order to form an adequate factual basis for a complete analysis of the application on its merit, the resource agency, Indian Tribe, or person must file a request for a study with the Commission not later than 60 days from the date of filing of the application, and serve a copy of the request on the applicant.</P>
                <P>l. Deadline for filing additional study requests and requests for cooperating agency status: May 30, 2025.</P>
                <P>
                    The Commission strongly encourages electronic filing. Please file additional study requests and requests for cooperating agency status using the Commission's eFiling system at 
                    <E T="03">https://ferconline.ferc.gov/FERCOnline.aspx</E>
                    . For assistance, please contact FERC Online Support at 
                    <E T="03">FERCOnlineSupport@ferc.gov,</E>
                     (866) 208-3676 (toll free), or (202) 502-8659 (TTY). In lieu of electronic filing, you may submit a paper copy. Submissions sent via the U.S. Postal Service must be addressed to: Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC 20426. Submissions sent via any other carrier must be addressed to: Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 12225 Wilkins Avenue, Rockville, Maryland 20852. All filings must clearly identify the project name and docket number on the first page: Mill Pond Hydroelectric Project (P-9985-039).
                </P>
                <P>m. The application is not ready for environmental analysis at this time.</P>
                <P>n. The Mill Pond Project consists of the following existing facilities: (1) a concrete gravity dam approximately 3 to 5 feet high and 130 feet long with a crest elevation of 105 feet mean sea level (msl) topped by 3-foot-high pneumatic flashboards for a spillway crest of 108 feet msl; (2) a 20-foot natural ledge rock fall; (3) a 7.28-acre reservoir with a gross storage capacity of 82 acre-feet at normal water surface elevation of 108 feet msl; (4) an intake structure that includes a trash rack with 1.75-inch clear bar spacing; (5) a 36-inch-diameter concrete trough and conveyance chute adjacent to the intake that passes minimum flows, fish, ice, and debris downstream; (6) an approximately 10-foot-diameter, 147-foot-long steel penstock that bifurcates into two separate, equivalent diameter sections; (7) a powerhouse 30 feet wide and 32 feet long containing two generating units rated at 500 kilowatts (kW) each for a total installed capacity of 1,000 kW; (8) 2.4-kilovolt (kV) generator leads connecting the generating units to a 13.2-kV-ampere step-up transformer located in a small switchyard; (9) a 200-foot-long (mostly underground) transmission line from the step-up transformer to the point of interconnection with the distribution system; and (10) appurtenant facilities.</P>
                <P>
                    Rivers Electric proposes to continue operating the project in a run-of-river mode such that outflow from the project approximates inflow to the project reservoir and to release, through the conveyance chute, a minimum flow of 20 cubic feet per second, or inflow, 
                    <PRTPAGE P="16120"/>
                    whichever is less, on a year-round basis as required by Article 402 of the current license.
                </P>
                <P>
                    o. A copy of the application can be viewed on the Commission's website at 
                    <E T="03">http://www.ferc.gov,</E>
                     using the “eLibrary” link. Enter the docket number, excluding the last three digits in the docket number field, to access the document (P-9985). For assistance, contact FERC at 
                    <E T="03">FERCOnlineSupport@ferc.gov,</E>
                     or call toll-free, (866) 208-3676 or (202) 502-8659 (TTY).
                </P>
                <P>
                    You may also register online at 
                    <E T="03">http://www.ferc.gov/docs-filing/esubscription.asp</E>
                     to be notified via email of new filings and issuances related to this or other pending projects. For assistance, contact FERC Online Support.
                </P>
                <P>
                    The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, community organizations, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov</E>
                    .
                </P>
                <P>p. Procedural schedule and final amendments: The application will be processed according to the following preliminary schedule. Revisions to the schedule will be made as appropriate.</P>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s125,r50">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Milestone</CHED>
                        <CHED H="1">Target date</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Issue Deficiency Letter (if necessary)</ENT>
                        <ENT>May 2025.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Request Additional Information</ENT>
                        <ENT>May 2025.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Issue Acceptance Letter</ENT>
                        <ENT>September 2025.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Issue Scoping Document 1 for comments</ENT>
                        <ENT>October 2025.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Issue Scoping Document 2 (if necessary)</ENT>
                        <ENT>December 2025.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Issue Notice of Ready for Environmental Analysis</ENT>
                        <ENT>December 2025.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Final amendments to the application must be filed with the Commission no later than 30 days from the issuance date of the notice of ready for environmental analysis.</P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06612 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <SUBJECT>Combined Notice of Filings</SUBJECT>
                <P>Take notice that the Commission has received the following Natural Gas Pipeline Rate and Refund Report filings:</P>
                <HD SOURCE="HD1">Filings Instituting Proceedings</HD>
                <P>
                    <E T="03">Docket Numbers:</E>
                     RP25-820-000.
                </P>
                <P>
                    <E T="03">Applicants:</E>
                     Florida Southeast Connection, LLC.
                </P>
                <P>
                    <E T="03">Description:</E>
                     Annual System Balancing Adjustment of Florida Southeast Connection, LLC.
                </P>
                <P>
                    <E T="03">Filed Date:</E>
                     4/10/25.
                </P>
                <P>
                    <E T="03">Accession Number:</E>
                     20250410-5206.
                </P>
                <P>
                    <E T="03">Comment Date:</E>
                     5 p.m. ET 4/22/25.
                </P>
                <P>Any person desiring to intervene, to protest, or to answer a complaint in any of the above proceedings must file in accordance with Rules 211, 214, or 206 of the Commission's Regulations (18 CFR 385.211, 385.214, or 385.206) on or before 5:00 p.m. Eastern time on the specified comment date. Protests may be considered, but intervention is necessary to become a party to the proceeding.</P>
                <P>
                    The filings are accessible in the Commission's eLibrary system (
                    <E T="03">https://elibrary.ferc.gov/idmws/search/fercgensearch.asp</E>
                    ) by querying the docket number.
                </P>
                <P>
                    eFiling is encouraged. More detailed information relating to filing requirements, interventions, protests, service, and qualifying facilities filings can be found at: 
                    <E T="03">http://www.ferc.gov/docs-filing/efiling/filing-req.pdf.</E>
                     For other information, call (866) 208-3676 (toll free). For TTY, call (202) 502-8659. 
                </P>
                <P>
                    The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, community organizations, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06620 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Docket No. CP25-79-000]</DEPDOC>
                <SUBJECT>ANR Pipeline Company; Notice of Schedule for the Preparation of an Environmental Assessment for the Heartland Project</SUBJECT>
                <P>On February 20, 2025, ANR Pipeline Company (ANR) filed an application in Docket No. CP25-79-000 requesting a Certificate of Public Convenience and Necessity pursuant to Section 7(c) and Authorization pursuant to Section 7(b) of the Natural Gas Act to construct, replace, and operate certain natural gas pipeline facilities. The proposed project is known as the Heartland Project (Project) and would expand ANR's existing system to provide up to 473,000 dekatherms per day of incremental firm transportation service to meet market demand for increased natural gas supply in the Midwest United States.</P>
                <P>On March 6, 2025, the Federal Energy Regulatory Commission (Commission or FERC) issued its Notice of Application for the Project. Among other things, that notice alerted agencies issuing federal authorizations of the requirement to complete all necessary reviews and to reach a final decision on a request for a federal authorization within 90 days of the date of issuance of the Commission staff's environmental document for the Project.</P>
                <PRTPAGE P="16121"/>
                <P>
                    This notice identifies Commission staff's intention to prepare an environmental assessment (EA) for the Project and the planned schedule for the completion of the environmental review.
                    <SU>1</SU>
                     The EA will be issued for a 30-day comment period.
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         For tracking purposes under the National Environmental Policy Act, the unique identification number for documents relating to this environmental review is EAXX-019-20-000-1743174609.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Schedule for Environmental Review</HD>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,p1,8/9,i1" CDEF="s150,xs68">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Issuance of EA</ENT>
                        <ENT>October 10, 2025.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            90-day Federal Authorization Decision Deadline 
                            <SU>2</SU>
                        </ENT>
                        <ENT>January 8, 2026.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    If a schedule
                    <FTREF/>
                     change becomes necessary, additional notice will be provided so that the relevant agencies are kept informed of the Project's progress.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         The Commission's deadline applies to the decisions of other federal agencies, and state agencies acting under federally delegated authority, that are responsible for federal authorizations, permits, and other approvals necessary for proposed projects under the Natural Gas Act. Per 18 CFR 157.22(a), the Commission's deadline for other agency's decisions applies unless a schedule is otherwise established by federal law.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Project Description</HD>
                <P>The Project consists of: (1) installing approximately 68.9 miles of new pipeline looping; (2) replacing approximately 1.5 miles of existing 18-inch- and 22-inch-diameter pipeline with a 30-inch diameter pipeline; (3) constructing three new greenfield compressor stations totaling 25,150 horsepower (hp) and installing one 19,500 hp compressor unit at one existing compressor station; (4) installing two greenfield meter stations and upgrading/expanding three existing meter stations; and (5) constructing or modifying other existing appurtenant facilities. The proposed Heartland Project is located in Brown, Racine, Sheboygan, Waukesha, and Winnebago Counties, Wisconsin, and Bureau, Kendall, Kane, McHenry, and Will Counties, Illinois.</P>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On July 22, 2024, the Commission issued a 
                    <E T="03">Notice of Scoping Period Requesting Comments on Environmental Issues for the Planned Heartland Project and Notice of Public Scoping Session</E>
                     (Notice of Scoping). The Notice of Scoping was issued during the pre-filing review of the Project in Docket No. PF24-3-000 and was sent to affected landowners; federal, state, and local government agencies; elected officials; environmental and public interest groups; Native American tribes; other interested parties; and local libraries and newspapers.
                </P>
                <P>In response to the Notice of Scoping, the Commission received comments from the U.S. Environmental Protection Agency, McHenry County, the City of New Berlin, 10 individuals, including potentially affected landowners, and 20 letters in support of the Project. The primary topics raised by the commenters are the potential for impacts on threatened/endangered species, conservation areas, land use, water resources, cultural resources, climate change, socioeconomics, noise, air quality, safety, health effects, general support for the Project, and the consideration of alternative routes and compressor station locations. All substantive comments will be addressed in the EA.</P>
                <P>The U.S. Environmental Protection Agency; Wisconsin Department of Agriculture, Trade, and Consumer Protection; and Wisconsin Department of Natural Resources are cooperating agencies in the preparation of the EA.</P>
                <HD SOURCE="HD1">Additional Information</HD>
                <P>
                    In order to receive notification of the issuance of the EA and to keep track of formal issuances and submittals in specific dockets, the Commission offers a free service called eSubscription. This service provides automatic notification of filings made to subscribed dockets, document summaries, and direct links to the documents. Go to 
                    <E T="03">https://www.ferc.gov/ferc-online/overview</E>
                     to register for eSubscription.
                </P>
                <P>
                    The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, community organizations, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <P>
                    Additional information about the Project is available from the Commission's Office of External Affairs at (866) 208-FERC or on the FERC website (
                    <E T="03">www.ferc.gov</E>
                    ). Using the “eLibrary” link, select “General Search” from the eLibrary menu, enter the selected date range and “Docket Number” excluding the last three digits (
                    <E T="03">i.e.,</E>
                     CP25-79), and follow the instructions. For assistance with access to eLibrary, the helpline can be reached at (866) 208-3676, TTY (202) 502-8659, or at 
                    <E T="03">FERCOnlineSupport@ferc.gov.</E>
                </P>
                <P>The eLibrary link on the FERC website also provides access to the texts of formal documents issued by the Commission, such as orders, notices, and rule makings.</P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06615 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Docket No. CP25-94-000]</DEPDOC>
                <SUBJECT>Rockies Express Pipeline, LLC; Notice of Scoping Period Requesting Comments on Environmental Issues and Notice of On-Site Environmental Review for the Proposed Decatur Lateral Project</SUBJECT>
                <P>The staff of the Federal Energy Regulatory Commission (FERC or Commission) will prepare an environmental document, that will discuss the environmental impacts of the Decatur Lateral Project involving construction and operation of facilities by Rockies Express Pipeline, LLC (Rockies Express) in Macon County, Illinois. The Commission will use this environmental document in its decision-making process to determine whether the project is in the public convenience and necessity.</P>
                <P>
                    This notice announces the opening of the scoping process the Commission will use to gather input from the public and interested agencies regarding the project. As part of the National Environmental Policy Act (NEPA) review process, the Commission takes into account concerns the public may have about proposals and the environmental impacts that could result from its action whenever it considers the issuance of a Certificate of Public Convenience and Necessity. This gathering of public input is referred to 
                    <PRTPAGE P="16122"/>
                    as “scoping.” The main goal of the scoping process is to focus the analysis in the environmental document on the important environmental issues. Additional information about the Commission's NEPA process is described below in the 
                    <E T="03">NEPA Process and Environmental Document</E>
                     section of this notice.
                </P>
                <P>
                    By this notice, the Commission requests public comments on the scope of issues to address in the environmental document. To ensure that your comments are timely and properly recorded, please submit your comments so that the Commission receives them in Washington, DC on or before 5:00pm Eastern Time on May 12, 2025. Comments may be submitted in written form. Further details on how to submit comments are provided in the 
                    <E T="03">Public Participation</E>
                     section of this notice.
                </P>
                <P>Your comments should focus on the potential environmental effects, reasonable alternatives, and measures to avoid or lessen environmental impacts. Your input will help the Commission staff determine what issues they need to evaluate in the environmental document. Commission staff will consider all written comments during the preparation of the environmental document.</P>
                <P>If you submitted comments on this project to the Commission before the opening of this docket on February 28, 2025, you will need to file those comments in Docket No. CP25-94-000 to ensure they are considered as part of this proceeding.</P>
                <P>This notice is being sent to the Commission's current environmental mailing list for this project. State and local government representatives should notify their constituents of this proposed project and encourage them to comment on their areas of concern.</P>
                <P>If you are a landowner receiving this notice, a pipeline company representative may contact you about the acquisition of an easement to construct, operate, and maintain the proposed facilities. The company would seek to negotiate a mutually acceptable easement agreement. You are not required to enter into an agreement. However, if the Commission approves the project, the Natural Gas Act conveys the right of eminent domain to the company. Therefore, if you and the company do not reach an easement agreement, the pipeline company could initiate condemnation proceedings in court. In such instances, compensation would be determined by a judge in accordance with state law. The Commission does not subsequently grant, exercise, or oversee the exercise of that eminent domain authority. The courts have exclusive authority to handle eminent domain cases; the Commission has no jurisdiction over these matters.</P>
                <P>
                    Rockies Express Pipeline, LLC provided landowners with a fact sheet prepared by the FERC entitled “An Interstate Natural Gas Facility On My Land? What Do I Need To Know?” which addresses typically asked questions, including the use of eminent domain and how to participate in the Commission's proceedings. This fact sheet along with other landowner topics of interest are available for viewing on the FERC website (
                    <E T="03">www.ferc.gov</E>
                    ) under the Natural Gas, Landowner Topics link.
                </P>
                <HD SOURCE="HD1">Public Participation</HD>
                <P>
                    There are three methods you can use to submit your comments to the Commission. Please carefully follow these instructions so that your comments are properly recorded. The Commission encourages electronic filing of comments and has staff available to assist you at (866) 208-3676 or 
                    <E T="03">FercOnlineSupport@ferc.gov</E>
                    .
                </P>
                <P>
                    (1) You can file your comments electronically using the eComment feature, which is located on the Commission's website (
                    <E T="03">www.ferc.gov</E>
                    ) under the link to FERC Online. Using eComment is an easy method for submitting brief, text-only comments on a project;
                </P>
                <P>
                    (2) You can file your comments electronically by using the eFiling feature, which is located on the Commission's website (
                    <E T="03">www.ferc.gov</E>
                    ) under the link to FERC Online. With eFiling, you can provide comments in a variety of formats by attaching them as a file with your submission. New eFiling users must first create an account by clicking on “eRegister.” You will be asked to select the type of filing you are making; a comment on a particular project is considered a “Comment on a Filing”; or
                </P>
                <P>(3) You can file a paper copy of your comments by mailing them to the Commission. Be sure to reference the project docket number (CP25-94) on your letter. Submissions sent via the U.S. Postal Service must be addressed to: Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 888 First Street NE, Room 1A, Washington, DC 20426. Submissions sent via any other carrier must be addressed to: Debbie-Anne A. Reese, Secretary, Federal Energy Regulatory Commission, 12225 Wilkins Avenue, Rockville, Maryland 20852.</P>
                <P>
                    Additionally, the Commission offers a free service called eSubscription which makes it easy to stay informed of all issuances and submittals regarding the dockets/projects to which you subscribe. These instant email notifications are the fastest way to receive notification and provide a link to the document files which can reduce the amount of time you spend researching proceedings. Go to 
                    <E T="03">https://www.ferc.gov/ferc-online/overview</E>
                     to register for eSubscription.
                </P>
                <P>
                    The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, community organizations, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202)502-6595 or 
                    <E T="03">OPP@ferc.gov</E>
                    .
                </P>
                <HD SOURCE="HD1">Onsite Environmental Review</HD>
                <P>On May 7, 2025, Office of Energy Projects staff will be in Macon County, Illinois to visit locations representative of the proposed Decatur Lateral Project area to further inform the environmental analysis. Sites will be visited via public access points.</P>
                <P>Any interested parties may attend. Those attending must provide their own transportation and should meet at the following location:</P>
                <P>• Decatur/Mt. Zion Hampton Inn (4855 East Evergreen Court, Decatur, IL 62521) at 8 a.m. CDT.</P>
                <HD SOURCE="HD1">Summary of the Proposed Project</HD>
                <P>
                    Rockies Express proposes to construct and operate a 15.9-mile, 20-inch-diameter natural gas transmission lateral pipeline and a 0.8-mile, 20-inch-diameter spur pipeline that would connect its mainline, which runs south of Decatur, IL, to two facilities in Decatur. Rockies Express would also construct numerous associated facilities including meter stations, valves, and inspection tool launching/receiving facilities. According to Rockies Express, the Decatur Lateral Project would provide about 185 million standard cubic feet of natural gas per day to Archer Daniels Midland and the Broadwing Clean Energy Complex. The general location of the project is shown in appendix 1.
                    <SU>1</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         The appendices referenced in this notice will not appear in the 
                        <E T="04">Federal Register</E>
                        . Copies of the appendices were sent to all those receiving this notice in the mail and are available at 
                        <E T="03">www.ferc.gov</E>
                         using the link called “eLibrary”. For instructions on connecting to eLibrary, refer to the last page of this notice. For assistance, contact FERC at 
                        <E T="03">FERCOnlineSupport@ferc.gov</E>
                         or call toll free, (886) 208-3676 or TTY (202) 502-8659.
                    </P>
                </FTNT>
                <PRTPAGE P="16123"/>
                <HD SOURCE="HD1">Land Requirements for Construction</HD>
                <P>Constructing the proposed facilities would require the use of about 215 acres of land. Following construction, Rockies Express would permanently maintain about 94 acres of land for operation of the Project's facilities.</P>
                <HD SOURCE="HD1">NEPA Process and the Environmental Document</HD>
                <P>Any environmental document issued by the Commission will discuss impacts that could occur as a result of the construction and operation of the proposed project under the relevant general resource areas:</P>
                <P>• geology and soils;</P>
                <P>• water resources and wetlands;</P>
                <P>• vegetation and wildlife;</P>
                <P>• threatened and endangered species;</P>
                <P>• cultural resources;</P>
                <P>• land use;</P>
                <P>• air quality and noise; and</P>
                <P>• reliability and safety.</P>
                <P>Commission staff have already identified several issues that deserve attention based on a preliminary review of the proposed facilities and the environmental information provided by Rockies Express. This preliminary list of issues may change based on your comments and our analysis:</P>
                <P>• agricultural operations and soils;</P>
                <P>• Lake Decatur crossing; and</P>
                <P>• public safety.</P>
                <P>Commission staff will also evaluate reasonable alternatives to the proposed project or portions of the project and make recommendations on how to lessen or avoid impacts on the various resource areas. Your comments will help Commission staff identify and focus on the issues that might have an effect on the human environment and potentially eliminate others from further study and discussion in the environmental document.</P>
                <P>
                    Following this scoping period, Commission staff will determine whether to prepare an Environmental Assessment (EA) or an Environmental Impact Statement (EIS). The EA or the EIS will present Commission staff's independent analysis of the issues. If Commission staff prepares an EA, a 
                    <E T="03">Notice of Schedule for the Preparation of an Environmental Assessment</E>
                     will be issued. The EA may be issued for an allotted public comment period. The Commission would consider timely comments on the EA before making its decision regarding the proposed project. If Commission staff prepares an EIS, a 
                    <E T="03">Notice of Intent to Prepare an EIS/Notice of Schedule</E>
                     will be issued, which will open up an additional comment period. Staff will then prepare a draft EIS which will be issued for public comment. Commission staff will consider all timely comments received during the comment period on the draft EIS and revise the document, as necessary, before issuing a final EIS. Any EA or draft and final EIS will be available in electronic format in the public record through eLibrary 
                    <SU>2</SU>
                    <FTREF/>
                     and the Commission's natural gas environmental documents web page (
                    <E T="03">https://www.ferc.gov/industries-data/natural-gas/environment/environmental-documents</E>
                    ). If eSubscribed, you will receive instant email notification when the environmental document is issued.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         For instructions on connecting to eLibrary, refer to the last page of this notice.
                    </P>
                </FTNT>
                <P>
                    With this notice, the Commission is asking agencies with jurisdiction by law and/or special expertise with respect to the environmental issues of this project to formally cooperate in the preparation of the environmental document.
                    <SU>3</SU>
                    <FTREF/>
                     Agencies that would like to request cooperating agency status should follow the instructions for filing comments provided under the 
                    <E T="03">Public Participation</E>
                     section of this notice.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         Cooperating agency responsibilities are addressed in Section 107(a)(3) of NEPA (42 U.S.C. 4336(a)(3)).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Consultation Under Section 106 of the National Historic Preservation Act</HD>
                <P>
                    In accordance with the Advisory Council on Historic Preservation's implementing regulations for section 106 of the National Historic Preservation Act, the Commission is using this notice to initiate consultation with the applicable State Historic Preservation Office(s), and to solicit their views and those of other government agencies, interested Indian tribes, and the public on the project's potential effects on historic properties.
                    <SU>4</SU>
                    <FTREF/>
                     The environmental document for this project will document findings on the impacts on historic properties and summarize the status of consultations under section 106.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         The Advisory Council on Historic Preservation's regulations are at Title 36, Code of Federal Regulations, Part 800. Those regulations define historic properties as any prehistoric or historic district, site, building, structure, or object included in or eligible for inclusion in the National Register of Historic Places.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Environmental Mailing List</HD>
                <P>The environmental mailing list includes federal, state, and local government representatives and agencies; elected officials; environmental and public interest groups; Native American Tribes; other interested parties; and local libraries and newspapers. This list also includes all affected landowners (as defined in the Commission's regulations) who are potential right-of-way grantors, whose property may be used temporarily for project purposes, or who own homes within certain distances of aboveground facilities, and anyone who submits comments on the project and includes a mailing address with their comments. Commission staff will update the environmental mailing list as the analysis proceeds to ensure that Commission notices related to this environmental review are sent to all individuals, organizations, and government entities interested in and/or potentially affected by the proposed project.</P>
                <P>If you need to make changes to your name/address, or if you would like to remove your name from the mailing list, please complete one of the following steps:</P>
                <P>
                    (1) Send an email to 
                    <E T="03">GasProjectAddressChange@ferc.gov</E>
                     stating your request. You must include the docket number CP25-94-000 in your request. If you are requesting a change to your address, please be sure to include your name and the correct address. If you are requesting to delete your address from the mailing list, please include your name and address as it appeared on this notice. This email address is unable to accept comments.
                </P>
                <P>
                    <E T="03">OR</E>
                </P>
                <P>(2) Return the attached “Mailing List Update Form” (appendix 2).</P>
                <HD SOURCE="HD1">Additional Information</HD>
                <P>
                    Additional information about the project is available from the Commission's Office of External Affairs, at (866) 208-FERC, or on the FERC website at 
                    <E T="03">www.ferc.gov</E>
                     using the eLibrary link. Click on the eLibrary link, click on “General Search” and enter the docket number in the “Docket Number” field. Be sure you have selected an appropriate date range. For assistance, please contact FERC Online Support at 
                    <E T="03">FercOnlineSupport@ferc.gov</E>
                     or (866) 208-3676, or for TTY, contact (202) 502-8659. The eLibrary link also provides access to the texts of all formal documents issued by the Commission, such as orders, notices, and rulemakings.
                </P>
                <P>
                    Public sessions or site visits will be posted on the Commission's calendar located at 
                    <E T="03">https://www.ferc.gov/news-events/events</E>
                     along with other related information.
                </P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06614 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="16124"/>
                <AGENCY TYPE="S">DEPARTMENT OF ENERGY</AGENCY>
                <SUBAGY>Federal Energy Regulatory Commission</SUBAGY>
                <DEPDOC>[Docket No. CP25-54-000]</DEPDOC>
                <SUBJECT>Gulf South Pipeline Company, LLC; Notice of Schedule for the Preparation of an Environmental Assessment for the Parks Line Upgrade and Sorrento Station Project</SUBJECT>
                <P>On January 28, 2025, Gulf South Pipeline Company, LLC (Gulf South) filed an application in Docket No. CP25-54-000 requesting a Certificate of Public Convenience and Necessity and authorization pursuant to Sections 7(b) and 7(c) of the Natural Gas Act for the Parks Line Upgrade and Sorrento Station Project (Project) in St. Martin and Ascension parishes, Louisiana. Gulf South proposes to add 236,000 dekatherms per day (Dth/d) of capacity through (1) restoration of maximum allowable operating pressure (MAOP) of the Arnaudville to Parks Line (Parks Line or Index 330) and (2) construction of the new Sorrento Compressor Station on Gulf South's Index 270 system in southern Louisiana. According to Gulf South, the Project would restore and enhance system capability and reliability while supporting regional energy needs.</P>
                <P>On February 11, 2025, the Federal Energy Regulatory Commission (Commission or FERC) issued its Notice of Application for the Project. Among other things, that notice alerted agencies issuing federal authorizations of the requirement to complete all necessary reviews and to reach a final decision on a request for a federal authorization within 90 days of the date of issuance of the Commission staff's environmental document for the Project.</P>
                <P>
                    This notice identifies Commission staff's intention to prepare an environmental assessment (EA) for the Project and the planned schedule for the completion of the environmental review.
                    <SU>1</SU>
                    <FTREF/>
                     The EA will be issued for a 30-day comment period.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         For tracking purposes under the National Environmental Policy Act, the unique identification number for documents relating to this environmental review is EAXX-019-20-000-1744214872.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Schedule for Environmental Review</HD>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,p1,8/9,i1" CDEF="s150,xs74">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1"> </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Issuance of EA</ENT>
                        <ENT>September 5, 2025.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">
                            90-day Federal Authorization Decision Deadline 
                            <SU>2</SU>
                        </ENT>
                        <ENT>December 4, 2025.</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    If a schedule change becomes necessary, additional notice will be provided so that the relevant agencies are kept informed of the Project's progress.
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         The Commission's deadline applies to the decisions of other federal agencies, and state agencies acting under federally delegated authority, that are responsible for federal authorizations, permits, and other approvals necessary for proposed projects under the Natural Gas Act. Per 18 CFR 157.22(a), the Commission's deadline for other agency's decisions applies unless a schedule is otherwise established by federal law.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">Project Description</HD>
                <P>The Project would consist of the facilities detailed below. Restoration of the Parks Line (Index 330) MAOP:</P>
                <P>• replacement of eleven segments, equaling 4.5 miles of the 30-inch-diameter Parks Line (Index 330) in St. Martin Parish, allowing for the pipeline to operate at its certificated MAOP of 1,000 pounds per square inch;</P>
                <P>• reestablishment of unmetered rural tap located at milepost 54.93; and</P>
                <P>• removal of one inactive tap at milepost 52.76.</P>
                <P>Construction of the Sorrento Compressor Station</P>
                <P>• construction of the new 12,510-horsepower Sorrento Compressor Station with auxiliary station equipment and a new meter and regulating (M&amp;R) station;</P>
                <P>• connection of Gulf South's existing Index 270 pipeline through two new, 0.29-mile-long 30-inch-diameter discharge pipelines, terminating at the proposed Sorrento mainline valve; and</P>
                <P>• construction of 1.06 miles of 20-inch-diameter pipeline to connect the proposed M&amp;R station to an inline tool receiver site, which would include a pig receiver, valve assembly, and security fencing.</P>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    On March 12, 2025, the Commission issued a 
                    <E T="03">Notice of Scoping Period Requesting Comments on Environmental Issues for the Proposed Parks Line Upgrade and Sorrento Station Project</E>
                     (Notice of Scoping). The Notice of Scoping was sent to affected landowners; federal, state, and local government agencies; elected officials; environmental and public interest groups; Native American tribes; other interested parties; and local libraries and newspapers. In response to the Notice of Scoping, the Commission received one comment from the Louisiana Ecological Services Office recommending use of the Information for Planning and Consultation species tool. All substantive comments will be addressed in the EA.
                </P>
                <HD SOURCE="HD1">Additional Information</HD>
                <P>
                    In order to receive notification of the issuance of the EA and to keep track of formal issuances and submittals in specific dockets, the Commission offers a free service called eSubscription. This service provides automatic notification of filings made to subscribed dockets, document summaries, and direct links to the documents. Go to 
                    <E T="03">https://www.ferc.gov/ferc-online/overview</E>
                     to register for eSubscription.
                </P>
                <P>
                    The Commission's Office of Public Participation (OPP) supports meaningful public engagement and participation in Commission proceedings. OPP can help members of the public, including landowners, community organizations, Tribal members and others, access publicly available information and navigate Commission processes. For public inquiries and assistance with making filings such as interventions, comments, or requests for rehearing, the public is encouraged to contact OPP at (202) 502-6595 or 
                    <E T="03">OPP@ferc.gov.</E>
                </P>
                <P>
                    Additional information about the Project is available from the Commission's Office of External Affairs at (866) 208-FERC or on the FERC website (
                    <E T="03">www.ferc.gov</E>
                    ). Using the “eLibrary” link, select “General Search” from the eLibrary menu, enter the selected date range and “Docket Number” excluding the last three digits (
                    <E T="03">i.e.,</E>
                     CP25-54), and follow the instructions. For assistance with access to eLibrary, the helpline can be reached at (866) 208-3676, TTY (202) 502-8659, or at 
                    <E T="03">FERCOnlineSupport@ferc.gov.</E>
                </P>
                <P>The eLibrary link on the FERC website also provides access to the texts of formal documents issued by the Commission, such as orders, notices, and rule makings.</P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>Debbie-Anne A. Reese,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06619 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6717-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="16125"/>
                <AGENCY TYPE="N">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <DEPDOC>[FRL-11923-01-R9]</DEPDOC>
                <SUBJECT>Notice of Availability of Proposed National Pollutant Discharge Elimination System (NPDES) General Permit for Bulk Fuel Facilities in Guam</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of availability of proposed NPDES general permit.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Environmental Protection Agency (EPA) Region 9 is proposing to reissue a NPDES general permit authorizing discharges of treated effluent from bulk fuel storage facilities located in Guam (Permit No. GUG000001). EPA proposes to reissue the permit upon completion of the notice and comment period and after consideration of all comments received. Upon issuance, the permit will be valid for five years. Use of a NPDES general permit allows EPA and dischargers to allocate resources in a more efficient manner while ensuring consistent permit conditions for comparable facilities. This notice announces the availability of the proposed NPDES general permit and the corresponding fact sheet for public comment, both of which can be found on EPA Region 9's website: 
                        <E T="03">https://www.epa.gov/npdes-permits/npdes-permits-epas-pacific-southwest-region-9.</E>
                         EPA is also taking comments on the frequency, duration, and volume of water discharges from each bulk fuel facility for the years including 2019 to 2024.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments on the proposed NPDES general permit must be received by May 19, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Documents and instructions for submitting comments related to this proposed NPDES general permit are available for public inspection online at: 
                        <E T="03">https://www.epa.gov/npdes-permits/npdes-permits-epas-pacific-southwest-region-9.</E>
                         If there are issues accessing the website, please contact EPA via the contact information below.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Bryn Copson, EPA Region 9, Water Division, NPDES Permits Office; telephone (415) 972-3663; email address: 
                        <E T="03">copson.bryn@epa.gov.</E>
                         The proposed NPDES general permit and other related documents in the administrative record are on file and may be inspected any time between 9 a.m. and 4 p.m., Monday through Friday, excluding legal holidays, at the following address:
                    </P>
                    <P>U.S. EPA Region 9, NPDES Permits Section, Water Division, 75 Hawthorne Street, San Francisco, CA 94105-3901.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">A. Does this action apply to me?</HD>
                <P>The proposed NPDES General Permit for Bulk Fuel Facilities in Guam is intended to provide NPDES permit coverage to certain discharges from the following bulk fuel storage facilities operating in Guam:</P>
                <P>a. Mobil Oil Guam Inc. Cabras Terminal,</P>
                <P>b. Tristar Guam F-1 Pier Terminal,</P>
                <P>c. South Pacific Petroleum Corporation Cabras Island Terminal,</P>
                <P>d. Tristar Guam Agat Terminal, and</P>
                <P>e. Guam Power Authority Piti Terminal</P>
                <P>The proposed permit does not provide coverage for any other discharges or facilities.</P>
                <HD SOURCE="HD1">B. How can I submit comments?</HD>
                <P>
                    • Submit comments by the deadline identified in this 
                    <E T="04">Federal Register</E>
                     notice.
                </P>
                <P>
                    • No public hearing is planned. If you would like to request a hearing, please see instructions at: 
                    <E T="03">https://www.epa.gov/npdes-permits/npdes-permits-epas-pacific-southwest-region-9.</E>
                </P>
                <P>
                    • Provide your comments in writing via instructions found here: 
                    <E T="03">https://www.epa.gov/npdes-permits/npdes-permits-epas-pacific-southwest-region-9.</E>
                     If you need assistance in a language other than English or if you are a person with disabilities who needs a reasonable accommodation at no cost to you, please reach out by email or telephone to the EPA contact. EPA encourages electronic submittals of comments, but if you are unable to submit electronically or need other assistance, please reach out using the contact information above.
                </P>
                <P>• Please note “General Permit for Bulk Fuel Facilities in Guam” in the subject line of any email submittal.</P>
                <P>
                    <E T="03">Authority:</E>
                     Clean Water Act, 33 U.S.C. 1251 
                    <E T="03">et seq.</E>
                </P>
                <SIG>
                    <DATED>Dated: April 3, 2025.</DATED>
                    <NAME>Tomás Torres,</NAME>
                    <TITLE>Director, Water Division, EPA Region 9.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06603 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <DEPDOC>[EPA-HQ-OAR-2003-0073; FRL-12669-01-OLEM]</DEPDOC>
                <SUBJECT>Proposed Information Collection Request; Comment Request; Distribution of Off-Site Consequence Analysis Information Under Section 112(r)(7)(H) of the Clean Air Act (CAA), as Amended (Renewal), EPA ICR Number 1981.09, OMB Control Number 2050-0172</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Environmental Protection Agency is planning to submit an information collection request (ICR), Distribution of Off-Site Consequence Analysis Information under Section 112(r)(7)(H) of the Clean Air Act (CAA), as amended (EPA No. 1981.09, OMB Control Number 2050-0172), to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act (PRA). Before doing so, EPA is soliciting public comments on specific aspects of the proposed information collection as described below. This is a proposed extension of the ICR, which is currently approved through November 30, 2025. An agency may not conduct or sponsor and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be submitted on or before June 16, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit your comments, referencing Docket ID No. EPA-HQ-OAR-2003-0073, to: EPA online using 
                        <E T="03">https://www.regulations.gov</E>
                         (our preferred method), by email to 
                        <E T="03">oira_submission@omb.eop.gov,</E>
                         or by mail to: EPA Docket Center, Environmental Protection Agency, Mail Code 28221T, 1200 Pennsylvania Ave. NW, Washington, DC 20460.
                    </P>
                    <P>EPA's policy is that all comments received will be included in the public docket without change including any personal information provided, unless the comment includes profanity, threats, information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute.</P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Wendy Hoffman, Office of Emergency Management, Mail Code 5104A, Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460; telephone number: (202) 564-
                        <PRTPAGE P="16126"/>
                        8794; email address: 
                        <E T="03">hoffman.wendy@epa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Supporting documents which explain in detail the information that EPA will be collecting are available in the public docket for this ICR. The docket can be viewed online at 
                    <E T="03">https://www.regulations.gov</E>
                     or in person at the EPA Docket Center, WJC West, Room 3334, 1301 Constitution Ave. NW, Washington, DC. The telephone number for the Docket Center is 202-566-1744. For additional information about EPA's public docket, visit 
                    <E T="03">https://www.epa.gov/dockets.</E>
                </P>
                <P>
                    Pursuant to section 3506(c)(2)(A) of the PRA, EPA is soliciting comments and information to enable it to: (i) Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility; (ii) evaluate the accuracy of the Agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (iii) enhance the quality, utility, and clarity of the information to be collected; and (iv) minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated electronic, mechanical, or other technological collection techniques or other forms of information technology, 
                    <E T="03">e.g.,</E>
                     permitting electronic submission of responses. EPA will consider the comments received and amend the ICR as appropriate. The final ICR package will then be submitted to OMB for review and approval. At that time, EPA will issue another 
                    <E T="04">Federal Register</E>
                     document to announce the submission of the ICR to OMB and the opportunity to submit additional comments to OMB.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     This ICR renewal is for the final rule, 
                    <E T="03">Accidental Release Prevention Requirements; Risk Management Programs Under the Clean Air Act Section 112(r)(7); Distribution of Off-Site Consequence Analysis Information.</E>
                     CAA section 112(r)(7) required EPA to promulgate reasonable regulations and appropriate guidance to provide for the prevention and detection of accidental releases and for responses to such releases. The regulations include requirements for submittal of a risk management plan (RMP) to EPA. The RMP includes information on off-site consequence analyses (OCA) as well as other required program elements.
                </P>
                <P>The Chemical Safety Information, Site Security, and Fuels Regulatory Relief Act (CSISSFRRA) required the President to promulgate regulations on the distribution of OCA information (CAA section 112(r)(7)(H)(ii)). The President delegated this responsibility to EPA and the Department of Justice (DOJ). The final rule, published on August 4, 2000 (65 FR 48108), imposed minimal information and recordkeeping requirements.</P>
                <P>In accordance with the final rule, the Federal Government established 55 reading rooms at Federal facilities geographically distributed across the United States and its territories. At these reading rooms, members of the public are able to read, but not mechanically copy or remove, paper copies of OCA information for up to 10 stationary sources per calendar month. Members of the public may also have access to OCA information that the Local Emergency Planning Committee (LEPC) in whose jurisdiction the person lives or works, is authorized to provide. The final rule also authorizes and encourages state and local government officials to have access to OCA information for their official use.</P>
                <P>EPA also established a Vulnerable Zone Indicator System (VZIS) which informs any person located in any state whether an address specified by that person might be within the vulnerable zone of one or more stationary sources, according to the data reported in RMPs. The VZIS is available on the internet or through a request through regular mail to the EPA.</P>
                <P>The burden estimates, numbers and types of respondents, wage rates and unit and total costs for this ICR renewal will be revised and updated, if needed, during the 60-day comment period while the ICR Supporting Statement is undergoing review at OMB.</P>
                <P>
                    <E T="03">Form numbers:</E>
                     None.
                </P>
                <P>
                    <E T="03">Respondents/affected entities:</E>
                     State and local agencies and the public.
                </P>
                <P>
                    <E T="03">Respondent's obligation to respond:</E>
                     Required to obtain or retain a benefit (40 CFR part 1400).
                </P>
                <P>
                    <E T="03">Estimated number of respondents:</E>
                     377 (total).
                </P>
                <P>
                    <E T="03">Frequency of response:</E>
                     As necessary.
                </P>
                <P>
                    <E T="03">Total estimated burden:</E>
                     665 hours (per year). Burden is defined at 5 CFR 1320.03(b).
                </P>
                <P>
                    <E T="03">Total estimated cost:</E>
                     $35,637 (per year), includes $95 annualized capital or operation &amp; maintenance costs.
                </P>
                <P>
                    <E T="03">Changes in the estimates:</E>
                     Any change in burden or cost resulting from the 60-day OMB review period will be described and explained in this section when the updated ICR Supporting Statement is completed.
                </P>
                <SIG>
                    <NAME>Shanna Ratnesar-Shumate,</NAME>
                    <TITLE>Deputy Director, Office of Emergency Management.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06594 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <DEPDOC>[EPA-HQ-OEM-2015-0725; FRL-12579-01-OLEM]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities; Proposed Information Collection Request; Comment Request; Risk Management Program Requirements and Petitions To Modify the List of Regulated Substances Under Section 112(r) of the Clean Air Act (Renewal) EPA ICR 1656.19, OMB Control Number 2050-0144</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Environmental Protection Agency (EPA) is planning to submit an information collection request (ICR), Risk Management Program Requirements and Petitions to Modify the List of Regulated Substances under Section 112(r) of the Clean Air Act (Renewal) (EPA ICR Number 1656.19, OMB Control Number 2050-0144) to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act. Before doing so, EPA is soliciting public comments on specific aspects of the proposed information collection as described below. This is a proposed extension of the ICR, which is currently approved through September 30, 2025. This notice allows for 60 days for public comments.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be submitted on or before June 16, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit your comments, referencing Docket ID Number EPA-HQ-OEM-2015-0725, to EPA online using 
                        <E T="03">www.regulations.gov</E>
                         (our preferred method), by email to 
                        <E T="03">oira_submission@omb.eop.gov,</E>
                         or by mail to: EPA Docket Center, Environmental Protection Agency, Mail Code 28221T, 1200 Pennsylvania Ave. NW, Washington, DC 20460. EPA's policy is that all comments received will be included in the public docket without change including any personal information provided, unless the comment includes profanity, threats, information claimed to be Confidential Business Information (CBI) or other 
                        <PRTPAGE P="16127"/>
                        information whose disclosure is restricted by statute.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Wendy Hoffman, Office of Emergency Management, Mail Code 5104A, Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460; telephone number: (202) 564-8794; email address: 
                        <E T="03">hoffman.wendy@epa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This is a proposed extension of the ICR, which is currently approved through September 30, 2025. An agency may not conduct or sponsor and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number.</P>
                <P>
                    This notice allows 60 days for public comments. Supporting documents, which explain in detail the information that the EPA will be collecting, are available in the public docket for this ICR. The docket can be viewed online at 
                    <E T="03">www.regulations.gov</E>
                     or in person at the EPA Docket Center, WJC West, Room 3334, 1301 Constitution Ave. NW, Washington, DC. The telephone number for the Docket Center is 202-566-1744. For additional information about EPA's public docket, visit 
                    <E T="03">https://www.epa.gov/dockets.</E>
                </P>
                <P>
                    Pursuant to section 3506(c)(2)(A) of the PRA, EPA is soliciting comments and information to enable it to: (i) evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility; (ii) evaluate the accuracy of the Agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (iii) enhance the quality, utility, and clarity of the information to be collected; and (iv) minimize the burden of the collection of information on those who are to respond, including through the use of appropriate forms of information technology. EPA will consider the comments received and amend the ICR as appropriate. The final ICR package will then be submitted to OMB for review and approval. At that time, EPA will issue another 
                    <E T="04">Federal Register</E>
                     notice to announce the submission of the ICR to OMB and the opportunity to submit additional comments to OMB.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     Information collection for on-site documentation of Risk Management Plans (RMPs) is authorized by Clean Air Act (CAA) sections 112(r)(7)(B)(i) and (ii), which state, “The Administrator shall promulgate reasonable regulations and appropriate guidance to provide . . . for the prevention and detection of accidental releases of regulated substances . . . .” and, “The regulations . . . shall require the owner or operator . . . to prepare and implement a risk management plan to detect and prevent or minimize accidental releases . . .” Information collection for submitting an RMP is authorized under CAA section 112(r)(7)(B)(iii), which states in relevant part, “The, owner or operator of each stationary source . . . shall register a risk management plan . . . with the Administrator before the effective date of the regulations . . . in such form and manner as the Administrator shall, by rule, require . . . and shall be available to the public under section 114(c).” Information collection for on-site documentation and submittal of RMPs also is authorized by CAA section 114(a)(1). State and local authorities use the information in RMPs to modify and enhance their community response plans. The agencies implementing the Risk Management Program use RMPs to evaluate compliance with the Chemical Accident Provisions in 40 CFR part 68 and to identify sources for inspection that may pose significant risks to the community. Citizens may use the information to assess chemical hazards in their communities.
                </P>
                <P>This request for comments relates to the renewal of the existing approved ICR. The burden estimates, numbers and types of respondents, wage rates, and unit and total costs for this ICR renewal will be revised and updated, if needed, based on comments received during the 60-day comment period.</P>
                <P>
                    <E T="03">Form numbers:</E>
                     None.
                </P>
                <P>
                    <E T="03">Respondents/affected entities:</E>
                     Stationary sources that manufacture, react, mix, store, or use substances in processes that require equipment designed, constructed, installed, operated, or maintained in specific ways to prevent accidental releases and ensure safe operations.
                </P>
                <P>
                    <E T="03">Respondent's obligation to respond:</E>
                     Mandatory under CAA section 112(r)(7)(B)(iii).
                </P>
                <P>
                    <E T="03">Estimated number of respondents:</E>
                     14,513 (total).
                </P>
                <P>
                    <E T="03">Frequency of response:</E>
                     Sources are required to register and submit an RMP once every five years unless there are significant changes in the information provided.
                </P>
                <P>
                    <E T="03">Total estimated burden:</E>
                     667,639 hours (per year). Burden is defined at 5 CFR 1320.03(b).
                </P>
                <P>
                    <E T="03">Total estimated cost:</E>
                     $52,611,420 (per year), which includes $36,792 annual operation &amp; maintenance costs.
                </P>
                <P>
                    <E T="03">Changes in the estimates:</E>
                     There is a decrease of 109,098 hours in the total estimated respondent burden compared with the ICR currently approved by OMB due to two reasons. First, the burden varies from one ICR renewal to the next due to sources' different resubmission and other regulatory deadlines. Therefore, the burden changes each year depending on how many sources must submit their RMP and comply with certain prevention program requirements. Second, the number of regulated sources fluctuates. It is lower than in the previous ICR (12,074 vs.12,341) due to the net change in the number of sources, as well as a lower number of new facilities anticipated to become subject to the RMP requirements during the three-year renewal period.
                </P>
                <SIG>
                    <NAME>Shanna Ratnesar-Shumate,</NAME>
                    <TITLE>Deputy Director, Office of Emergency Management.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06589 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <DEPDOC>[EPA-HQ-SFUND-2013-0549; FRL-12668-01-OLEM]</DEPDOC>
                <SUBJECT>Proposed Information Collection Request; Comment Request: Information Collection Request Submitted to OMB for Review and Approval; Notification of Episodic Releases of Oil and Hazardous Substances (Renewal) EPA ICR Number 1049.16, OMB Control Number 2050-0046</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Environmental Protection Agency is planning to submit an information collection request (ICR), Notification of Episodic Releases of Oil and Hazardous Substances (Renewal) (EPA ICR Number 1049.16, OMB Control Number 2050-0046) to the Office of Management and Budget (OMB) for review and approval in accordance with the Paperwork Reduction Act (PRA). Before doing so, EPA is soliciting public comments on specific aspects of the proposed information collection as described below. This is a proposed extension of the ICR, which is currently approved through November 30, 2025. An Agency may not conduct or sponsor and a person is not required to respond to a collection of information unless it displays a currently valid OMB control number.</P>
                </SUM>
                <DATES>
                    <PRTPAGE P="16128"/>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be submitted on or before June 16, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Submit your comments, referencing Docket ID No. EPA-HQ-SFUND-2013-0549, to: EPA online using 
                        <E T="03">https://www.regulations.gov</E>
                         (our preferred method), by email to 
                        <E T="03">superfund.docket@epa.gov</E>
                         or by mail to: EPA Docket Center, Environmental Protection Agency, Mail Code 28221T, 1200 Pennsylvania Ave. NW, Washington, DC 20460, and OMB via email to 
                        <E T="03">oira_submission@omb.eop.gov.</E>
                         EPA's policy is that all comments received will be included in the public docket without change including any personal information provided, unless the comment includes profanity, threats, information claimed to be Confidential Business Information (CBI) or other information whose disclosure is restricted by statute.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Wendy Hoffman, Office of Emergency Management, Mail Code 5104A, Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington, DC 20460; telephone number: (202) 564-8794; email address: 
                        <E T="03">hoffman.wendy@epa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Supporting documents which explain in detail the information that EPA will be collecting are available in the public docket for this ICR. The docket can be viewed online at 
                    <E T="03">https://www.regulations.gov</E>
                     or in person at the EPA Docket Center, WJC West, Room 3334, 1301 Constitution Ave. NW, Washington, DC. The telephone number for the Docket Center is 202-566-1744. For additional information about EPA's public docket, visit 
                    <E T="03">https://www.epa.gov/dockets.</E>
                </P>
                <P>
                    Pursuant to section 3506(c)(2)(A) of the PRA, EPA is soliciting comments and information to enable it to: (i) Evaluate whether the proposed collection of information is necessary for the proper performance of the functions of the Agency, including whether the information will have practical utility; (ii) evaluate the accuracy of the Agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (iii) enhance the quality, utility, and clarity of the information to be collected; and (iv) minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated electronic, mechanical, or other technological collection techniques or other forms of information technology, 
                    <E T="03">e.g.,</E>
                     permitting electronic submission of responses. EPA will consider the comments received and amend the ICR as appropriate. The final ICR package will then be submitted to OMB for review and approval. At that time, EPA will issue another 
                    <E T="04">Federal Register</E>
                     document to announce the submission of the ICR to OMB and the opportunity to submit additional comments to OMB.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     Section 103(a) of the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), as amended, requires the person in charge of a facility or vessel to immediately notify the National Response Center (NRC) of a hazardous substance release into the environment if the amount of the release equals or exceeds the substance's reportable quantity (RQ) limit. The RQs for the hazardous substance can be found in table 302.4 of 40 CFR 302.4. Section 311 of the Clean Water Act (CWA) as amended, requires the person in charge of a facility or vessel to immediately notify the NRC of an oil spill into U.S. navigable waters if the spill causes a sheen., violates applicable water quality standards, or causes a sludge or emulsion to be deposited beneath the surface of the water or upon adjoining shorelines. The reporting of a hazardous substance release that is at or above the substance's RQ allows the Federal government to determine whether a Federal response action is required to control or mitigate any potential adverse effects to public health or welfare or the environment. Likewise, the reporting of oil spills allows the Federal government to determine whether cleaning up the oil spill is required to mitigate or prevent damage to public health or welfare or the environment. The hazardous substance release and oil discharge information collected under CERCLA section 103(a) and CWA section 311 also is available to EPA program offices and other Federal agencies that use the information to evaluate the potential need for additional regulations, new permitting requirements for specific substances or sources, or improved emergency response planning. Release notification information, which is stored in WebEOC, a web-based crisis management system which supports response management for significant incidents and daily operations in the Regional Response Centers and EPA's Headquarters Emergency Operations Center (EOC), is available to state and local government authorities as well as the general public. State and local government authorities and the regulated community use release information for purposes of local emergency response planning. Members of the general public, who have access to release information through the Freedom of Information Act, may request release information for purposes of maintaining an awareness of what types of releases are occurring in different localities and what actions, if any, are being taken to protect public health and welfare and the environment.
                </P>
                <P>The burden estimates, numbers and types of respondents, wage rates and unit and total costs for this ICR renewal will be revised and updated if needed during the 60-day comment period while the ICR Supporting statement is undergoing review at OMB.</P>
                <P>
                    <E T="03">Form numbers:</E>
                     None.
                </P>
                <P>
                    <E T="03">Respondents/affected entities:</E>
                     Facilities and vessels that may have releases of any hazardous substances or oil at or above its RQ.
                </P>
                <P>
                    <E T="03">Respondent's obligation to respond:</E>
                     Mandatory under CERCLA section 103(a).
                </P>
                <P>
                    <E T="03">Estimated number of respondents:</E>
                     21,789.
                </P>
                <P>
                    <E T="03">Frequency of response:</E>
                     As releases occur from a facility or a vessel.
                </P>
                <P>
                    <E T="03">Total estimated burden:</E>
                     22,225 hours (per year). Burden is defined at 5 CFR 1320.03(b).
                </P>
                <P>
                    <E T="03">Total estimated cost:</E>
                     $1,486,297 (per year), which includes no capital or operation and maintenance costs associated with this ICR.
                </P>
                <P>
                    <E T="03">Changes in estimates:</E>
                     Any change in burden or cost resulting from the 60-day OMB review period will be described and explained in this section when the updated ICR Supporting Statement is completed.
                </P>
                <SIG>
                    <NAME>Shanna Ratnesar-Shumate,</NAME>
                    <TITLE>Deputy Director, Office of Emergency Management.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06592 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">ENVIRONMENTAL PROTECTION AGENCY</AGENCY>
                <DEPDOC>[EPA-HQ-OW-2024-0504; FRL-12451-02-OW]</DEPDOC>
                <SUBJECT>Draft Sewage Sludge Risk Assessment for Perfluorooctanoic Acid (PFOA) and Perfluorooctane Sulfonic Acid (PFOS); Extension of Comment Period</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Environmental Protection Agency (EPA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of availability; extension of comment period.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This document extends the comment period for the notice published by the Environmental Protection Agency in the 
                        <E T="04">Federal Register</E>
                         on January 15, 2025.
                    </P>
                </SUM>
                <DATES>
                    <PRTPAGE P="16129"/>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        The comment period for the notice published in the 
                        <E T="04">Federal Register</E>
                         on January 15, 2025 (90 FR 3859), which was extended on February 21, 2025 (90 FR 10078), is further extended in response to stakeholder requests for more time. The EPA is extending the comment period, and the comments must be received on or before August 14, 2025.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may send comments, identified by Docket ID No. EPA-HQ-OW-2024-0504, by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal: https://www.regulations.gov/</E>
                         (our preferred method). Follow the online instructions for submitting comments.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         U.S. Environmental Protection Agency, EPA Docket Center, Office of Water Docket, Mail Code 28221T, 1200 Pennsylvania Avenue NW, Washington, DC 20460.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery or Courier:</E>
                         EPA Docket Center, WJC West Building, Room 3334, 1301 Constitution Avenue NW, Washington, DC 20004. The Docket Center's hours of operations are 8:30 a.m.-4:30 p.m., Monday-Friday (except Federal Holidays).
                    </P>
                    <P>
                        <E T="03">Instructions:</E>
                         All submissions received must include the Docket ID No. for this rulemaking. Comments received may be posted without change to 
                        <E T="03">https://www.regulations.gov/,</E>
                         including any personal information provided.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        David Tobias, Health and Ecological Criteria Division, Office of Science and Technology, Office of Water (Mail Code 4304T), Environmental Protection Agency, 1200 Pennsylvania Avenue NW, Washington, DC 20460; telephone number: (202) 564-8534; email address: 
                        <E T="03">biosolidsprogram@epa.gov</E>
                        .
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>This document extends the comment period for a draft risk assessment published on January 15, 2025 (90 FR 3859), and the extension of comment period published on February 21, 2025 (90 FR 10078). Comments for notice FRL-12451-01-OW (90 FR 3859, January 15, 2025) must now be received on or before August 14, 2025.</P>
                <P>
                    This document extends the public comment period for the notice “Draft Sewage Sludge Risk Assessment for Perfluorooctanoic Acid (PFOA) and Perfluorooctane Sulfonic Acid (PFOS),” published in the 
                    <E T="04">Federal Register</E>
                     document on January 15, 2025 (90 FR 3859) (FRL-12451-01-OW), for an additional 120 days. In that document, the EPA announced the availability of the “Draft Sewage Sludge Risk Assessment for Perfluorooctanoic Acid (PFOA) and Perfluorooctane Sulfonic Acid (PFOS)” for a 60-day public comment period. On February 21, 2025, the EPA extended the public comment period for an additional 30 days (90 FR 10078) (FRL-12587-02-OA).
                </P>
                <P>
                    The draft risk assessment reflects the agency's latest scientific understanding of the potential risks to human health and the environment posed by the presence of PFOA and PFOS in sewage sludge that is land applied as a soil conditioner or fertilizer (on agricultural, forested, and other lands), surface disposed, or incinerated. The draft risk assessment focuses on those living on or near impacted sites or those that rely primarily on their products (
                    <E T="03">e.g.,</E>
                     food crops, animal products, drinking water); the draft risk assessment does not model risks for the general public. The draft risk assessment underwent independent external peer review, and the EPA revised the draft document accordingly. Once finalized, the risk assessment will provide information on risk from use or disposal of sewage sludge and will inform the EPA's potential future regulatory actions under the Clean Water Act.
                </P>
                <P>The EPA is extending the comment period to allow interested parties additional time to thoroughly review and analyze this draft science document. Comments previously submitted need not be resubmitted as they are already incorporated into the public record and will be considered in the final risk assessment as appropriate.</P>
                <P>
                    To submit comments, or access the docket, please follow the detailed instructions provided under 
                    <E T="02">ADDRESSES</E>
                    . If you have questions, consult the technical person listed under 
                    <E T="02">FOR FURTHER INFORMATION CONTACT</E>
                    .
                </P>
                <SIG>
                    <NAME>Tanya Hodge Mottley,</NAME>
                    <TITLE>Acting Director, Office of Science and Technology, Office of Water.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06571 Filed 4-14-25; 4:15 pm]</FRDOC>
            <BILCOD>BILLING CODE 6560-50-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL COMMUNICATIONS COMMISSION</AGENCY>
                <DEPDOC>[OMB 3060-1192; FR ID 290081]</DEPDOC>
                <SUBJECT>Information Collection Being Reviewed by the Federal Communications Commission</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Communications Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>As part of its continuing effort to reduce paperwork burdens, and as required by the Paperwork Reduction Act (PRA) of 1995, the Federal Communications Commission (FCC or the Commission) invites the general public and other Federal agencies to take this opportunity to comment on the following information collection. Comments are requested concerning: whether the proposed collection of information is necessary for the proper performance of the functions of the Commission, including whether the information shall have practical utility; the accuracy of the Commission's burden estimate; ways to enhance the quality, utility, and clarity of the information collected; ways to minimize the burden of the collection of information on the respondents, including the use of automated collection techniques or other forms of information technology; and ways to further reduce the information collection burden on small business concerns with fewer than 25 employees.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written PRA comments should be submitted on or before June 16, 2025. If you anticipate that you will be submitting comments, but find it difficult to do so within the period of time allowed by this notice, you should advise the contact listed below as soon as possible.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Direct all PRA comments to Nicole Ongele, FCC, via email 
                        <E T="03">PRA@fcc.gov</E>
                         and to 
                        <E T="03">nicole.ongele@fcc.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>For additional information about the information collection, contact Nicole Ongele, (202) 418-2991.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>The FCC may not conduct or sponsor a collection of information unless it displays a currently valid control number. No person shall be subject to any penalty for failing to comply with a collection of information subject to the PRA that does not display a valid Office of Management and Budget (OMB) control number.</P>
                <P>
                    <E T="03">OMB Control Number:</E>
                     3060-1192.
                </P>
                <P>
                    <E T="03">Title:</E>
                     Survey of Urban Rates, DA 13-598.
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     N/A.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension of a currently approved collection.
                </P>
                <P>
                    <E T="03">Respondents:</E>
                     Business or other for-profit.
                </P>
                <P>
                    <E T="03">Number of Respondents and Responses:</E>
                     2,350 respondents; 2,350 responses.
                </P>
                <P>
                    <E T="03">Estimated Time per Response:</E>
                     3 hours.
                </P>
                <P>
                    <E T="03">Frequency of Response:</E>
                     Annual reporting requirement.
                </P>
                <P>
                    <E T="03">Obligation to Respond:</E>
                     Mandatory. Statutory authority for this information collection is contained in 47 U.S.C. 254(b).
                </P>
                <P>
                    <E T="03">Total Annual Burden:</E>
                     7,050 hours.
                    <PRTPAGE P="16130"/>
                </P>
                <P>
                    <E T="03">Total Annual Cost:</E>
                     No cost.
                </P>
                <P>
                    <E T="03">Needs and Uses:</E>
                     In April 2013, the Wireline Competition Bureau of the Federal Communications Commission adopted an Order (Order), in WC Docket No. 10-90; DA 13-598, 78 FR 29063, Connect America Fund. The Order adopted the form and content for a survey of urban rates for fixed voice and fixed broadband residential services for purposes of implementing various reforms adopted as part of the USF/ICC Transformation Order, 76 FR 73830, November 29, 2011. The information collected in this survey will be used to help ensure that universal service support recipients offering fixed voice and broadband services do so at reasonably comparable rates to those in urban areas. The comparability requirements are important components of the Commission's overall effort to improve accountability for the use of universal service funding. The comparability requirements will ensure that rates are reasonably comparable for voice as well as broadband service, between urban and rural, insular, and high cost areas. Rates must be reasonably comparable so that consumers in rural, insular, and high cost areas have meaningful access to these services. This Order requires a statistically valid sample of urban providers to complete a survey with information regarding the types and prices of their offerings. The Commission conducts this survey through an online reporting form accessible to those urban providers of fixed voice and broadband services that are chosen to participate.
                </P>
                <SIG>
                    <FP>Federal Communications Commission.</FP>
                    <NAME>Katura Jackson,</NAME>
                    <TITLE>Federal Register Liaison Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06551 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6712-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL RESERVE SYSTEM</AGENCY>
                <SUBJECT>Change in Bank Control Notices; Acquisitions of Shares of a Bank or Bank Holding Company</SUBJECT>
                <P>The notificants listed below have applied under the Change in Bank Control Act (Act) (12 U.S.C. 1817(j)) and § 225.41 of the Board's Regulation Y (12 CFR 225.41) to acquire shares of a bank or bank holding company. The factors that are considered in acting on the applications are set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)).</P>
                <P>
                    The public portions of the applications listed below, as well as other related filings required by the Board, if any, are available for immediate inspection at the Federal Reserve Bank(s) indicated below and at the offices of the Board of Governors. This information may also be obtained on an expedited basis, upon request, by contacting the appropriate Federal Reserve Bank and from the Board's Freedom of Information Office at 
                    <E T="03">https://www.federalreserve.gov/foia/request.htm.</E>
                     Interested persons may express their views in writing on the standards enumerated in paragraph 7 of the Act.
                </P>
                <P>Comments received are subject to public disclosure. In general, comments received will be made available without change and will not be modified to remove personal or business information including confidential, contact, or other identifying information. Comments should not include any information such as confidential information that would not be appropriate for public disclosure.</P>
                <P>Comments regarding each of these applications must be received at the Reserve Bank indicated or the offices of the Board of Governors, Ann E. Misback, Secretary of the Board, 20th Street and Constitution Avenue NW, Washington, DC 20551-0001, not later than May 2, 2025.</P>
                <P>
                    <E T="03">A. Federal Reserve Bank of Chicago</E>
                     (Colette A. Fried, Assistant Vice President) 230 South LaSalle Street, Chicago, Illinois 60690-1414. Comments can also be sent electronically to 
                    <E T="03">Comments.applications@chi.frb.org:</E>
                </P>
                <P>
                    1. 
                    <E T="03">The Fred W. Maifeld Residuary Trust—FBO Lori Maifeld, Clarksville, Iowa; and The Fred W. Maifeld Residuary Trust—FBO Rhonda Maifeld, Clarksville, Iowa; Arlyn Maifeld, Parkersburg, Iowa, Lester J. Maifeld, Burnsville, Minnesota, Roger L. Maifeld, Manchester, Iowa, and Russell D. Maifeld, Galesburg, Illinois, as trustees of the aforementioned trusts;</E>
                     to join the Maifeld Family Control Group, a group acting in concert, to acquire voting shares of Clarkel, Inc., Kesley, Iowa, and thereby indirectly acquire voting shares of Iowa State Bank, Clarksville, Iowa.
                </P>
                <SIG>
                    <P>Board of Governors of the Federal Reserve System.</P>
                    <NAME>Benjamin W. McDonough,</NAME>
                    <TITLE>Deputy Secretary of the Board.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06581 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">FEDERAL TRADE COMMISSION</AGENCY>
                <DEPDOC>[Docket No. C-4814]</DEPDOC>
                <SUBJECT>Petition of Chevron Corporation and Hess Corporation To Reopen and Set Aside Order</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Trade Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Announcement of petition; request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Chevron Corporation and Hess Corporation (collectively, the “Respondents”), have asked the Federal Trade Commission (“FTC” or “Commission”) to reopen and set aside the Commission's Decision and Order entered on January 17, 2025, concerning Chevron's acquisition of Hess. Publication of Respondents' petition is not intended to affect its legal status or its final disposition.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before May 12, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Interested parties may file comments online or on paper, by following the instructions in the Request for Comment part of the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section below. Please write: “Chevron/Hess Petition to Reopen; Docket No. C-4814” on your comment and file your comment online at 
                        <E T="03">https://www.regulations.gov/docket/FTC-2025-0029/document</E>
                         by following the instructions on the web-based form. If you prefer to file your comment on paper, please mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Mail Stop H-144 (Annex O), Washington, DC 20580.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Peter Richman (202-326-2563), Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Pursuant to section 6(g) of the Federal Trade Commission Act, 15 U.S.C. 46(g), and FTC Rule 2.51, 16 CFR 2.51, notice is hereby given that the above-captioned petition has been filed with the Secretary of the Commission and is being placed on the public record for a period of 30 days. After the period for public comments has expired and no later than 120 days after the date of the filing of the request, the Commission shall determine whether to reopen the proceeding and modify the Order as requested. In making its determination, the Commission will consider, among other information, all timely and responsive comments submitted in connection with this notification.
                    <PRTPAGE P="16131"/>
                </P>
                <P>
                    The text of the petition is provided below. An electronic copy of the filed petition and any public exhibits attached to it can be obtained from the FTC website at this URL: 
                    <E T="03">https://www.ftc.gov/legal-library/browse/cases-proceedings/241-0008-chevronhess-matter.</E>
                </P>
                <P>
                    You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or before May 12, 2025. Write “Chevron/Hess Petition to Reopen; Docket No. C-4814” on your comment. Your comment—including your name and your State—will be placed on the public record of this proceeding, including, to the extent practicable, on the 
                    <E T="03">www.regulations.gov</E>
                     website.
                </P>
                <P>
                    Because of the agency's heightened security screening, postal mail addressed to the Commission will be subject to delay. We strongly encourage you to submit your comments online through the 
                    <E T="03">www.regulations.gov</E>
                     website. If you prefer to file your comment on paper, write “Chevron/Hess Petition to Reopen; Docket No. C-4814” on your comment and on the envelope, and mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Mail Stop H-144 (Annex O), Washington, DC 20580. If possible, submit your paper comment to the Commission by overnight service.
                </P>
                <P>
                    Because your comment will be placed on the publicly accessible website at 
                    <E T="03">www.regulations.gov,</E>
                     you are solely responsible for making sure that your comment does not include any sensitive or confidential information. In particular, your comment should not include any sensitive personal information, such as your or anyone else's Social Security number; date of birth; driver's license number or other State identification number, or foreign country equivalent; passport number; financial account number; or credit or debit card number. You are also solely responsible for making sure your comment does not include any sensitive health information, such as medical records or other individually identifiable health information. In addition, your comment should not include any “trade secret or any commercial or financial information which . . . is privileged or confidential”—as provided by section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)—including in particular competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names.
                </P>
                <P>
                    Comments containing material for which confidential treatment is requested must be filed in paper form, must be clearly labeled “Confidential,” and must comply with FTC Rule 4.9(c). In particular, the written request for confidential treatment that accompanies the comment must include the factual and legal basis for the request and must identify the specific portions of the comment to be withheld from the public record. 
                    <E T="03">See</E>
                     FTC Rule 4.9(c). Your comment will be kept confidential only if the General Counsel grants your request in accordance with the law and the public interest. Once your comment has been posted on 
                    <E T="03">www.regulations.gov</E>
                    —as legally required by FTC Rule 4.9(b)—we cannot redact or remove your comment from that website, unless you submit a confidentiality request that meets the requirements for such treatment under FTC Rule 4.9(c), and the General Counsel grants that request.
                </P>
                <P>
                    Visit the FTC website at 
                    <E T="03">https://www.ftc.gov</E>
                     to read this document and the news release describing this matter. The FTC Act and other laws that the Commission administers permit the collection of public comments to consider and use in this proceeding, as appropriate. The Commission will consider all timely and responsive public comments that it receives on or before May 12, 2025. For information on the Commission's privacy policy, including routine uses permitted by the Privacy Act, see 
                    <E T="03">https://www.ftc.gov/site-information/privacy-policy.</E>
                </P>
                <P>
                    <E T="03">Authority:</E>
                     15 U.S.C. 46, 5 U.S.C. 552.
                </P>
                <SIG>
                    <NAME>April J. Tabor,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
                <HD SOURCE="HD1">Text of Petition by Chevron Corporation and Hess Corporation To Reopen and Set Aside the Order</HD>
                <P>
                    Pursuant to section 5(b) of the Federal Trade Commission Act, 15 U.S.C. 45(b), and section 2.51 of the Federal Trade Commission Rules of Practice, 16 CFR 2.51, Respondents Chevron Corporation (“Chevron”) and Hess Corporation (“Hess”) (collectively, the “Respondents”) respectfully request that the Commission reopen and set aside the Commission's Decision and Order entered on January 17, 2025,
                    <SU>1</SU>
                    <FTREF/>
                     in Docket No. C-4814 (the “Order”).
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         The Order was issued on January 16, 2025, and final when received by the Respondents on January 17, 2025. 
                        <E T="03">See</E>
                         16 CFR 2.34(c).
                    </P>
                </FTNT>
                <P>
                    The Order bars Chevron from nominating, designating or appointing Hess CEO John B. Hess from joining Chevron's Board of Directors, as is required by the Respondents' merger agreement.
                    <SU>2</SU>
                    <FTREF/>
                     A divided Commission voted to issue a Complaint alleging that Mr. Hess's appointment to the Chevron Board “would heighten the risk of harm to competition, including meaningfully increasing the risk of industry coordination” in the global market for the development, production, and sale of crude oil.
                    <SU>3</SU>
                    <FTREF/>
                     As set forth below, and as made clear in Chairman Ferguson's and Commissioner Holyoak's September 30, 2024 dissenting statements, the Commission's Complaint failed to state a cognizable theory of competitive harm under section 7 of the Clayton Act, as amended, 15 U.S.C. 18, or section 5 of the Federal Trade Commission Act, 15 U.S.C. 45, under which to challenge the Chevron/Hess merger.
                    <SU>4</SU>
                    <FTREF/>
                     The Respondents hereby respectfully petition the Commission to reopen and set aside the Order in the public interest.
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         
                        <E T="03">See</E>
                         Decision and Order, 
                        <E T="03">In the Matter of Chevron Corp. &amp; Hess Corp.,</E>
                         File No. 241-0008 (Jan. 16, 2025), ¶ II.A. The Order also prohibits Chevron from appointing Mr. Hess to serve in an advisory or consultative capacity to Chevron or its board, with limited exceptions. 
                        <E T="03">Id.</E>
                         at ¶ II.B.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Complaint, 
                        <E T="03">In the Matter of Chevron Corp. &amp; Hess Corp.,</E>
                         File No. 241-0008 (Jan. 16, 2025), ¶¶ 19-20, 50.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See generally</E>
                         Dissenting Statement of Commissioner Andrew N. Ferguson, 
                        <E T="03">In the Matter of Chevron Corp. &amp; Hess Corp.,</E>
                         File No. 241-0008 (Sep. 30, 2024) (the “Ferguson Dissent”); Dissenting Statement of Commissioner Melissa Holyoak, 
                        <E T="03">In the Matter of Chevron Corp. &amp; Hess Corp.,</E>
                         File No. 241-0008 (Sep. 30, 2024) (the “Holyoak Dissent”). While Commissioners Holyoak and Ferguson did not issue separate written dissents to the Commission's January 17, 2025 final Decision and Order, their dissents are incorporated into the final order, and they are referenced in Commissioner Holyoak's written dissent to the Commission's contemporaneous final Decision and Order for the ExxonMobil matter. 
                        <E T="03">See</E>
                         Dissenting Statement of Commissioner Melissa Holyoak Joined by Commissioner Andrew N. Ferguson, 
                        <E T="03">In the Matter of ExxonMobil/Pioneer Res.,</E>
                         Final Decision and Order, File No. 241-0004 (Jan. 17, 2025), at 1 n.3 (“I also voted today to reject the finalization of the Decision and Order that resolves the merger of Chevron and Hess. . . . My views have not changed with respect to the flawed nature of the complaint and consent in Chevron/Hess—views that continue to apply to my decision to vote against today's finalization of the Decision and Order [in the matter of ExxonMobil].”).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">I. Background</HD>
                <HD SOURCE="HD3">A. Merger Transaction</HD>
                <P>
                    On October 22, 2023, the Respondents entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which Chevron will acquire Hess. As consideration for the merger, Hess shareholders will receive shares of Chevron voting securities with an aggregate value of approximately $53 billion at signing. Among other things, Section 1.3(a) of the Merger Agreement requires Chevron and its Board of Directors, upon closing of the proposed 
                    <PRTPAGE P="16132"/>
                    merger, to take all actions necessary to increase the size of the Chevron Board from twelve to thirteen members and to appoint Mr. Hess as a Chevron director. Upon closing of the merger, Hess's shareholders will hold in the aggregate approximately 15 percent of Chevron's outstanding voting securities, and the covenant to appoint Mr. Hess to Chevron's Board is consistent with board representation for those shareholders, as well as with their expectations when they voted to approve the merger. Mr. Hess's appointment to Chevron's Board is also consistent with Chevron's communications to Hess before the Merger Agreement was signed, in which Chevron conveyed its desire that Mr. Hess join the Chevron Board upon the closing of the merger. Chevron's commitment to appoint Mr. Hess as one of thirteen members of the Chevron Board is a fundamental part of the overall merger transaction.
                </P>
                <P>The Respondents have not yet closed the merger. On May 28, 2024, holders of a majority of Hess's outstanding common stock voted to approve the merger. Hess Guyana Exploration Limited (“HGEL”), a wholly owned subsidiary of Hess, is currently in arbitration relating to the applicability of a right of first refusal (the “Stabroek ROFR”) contained in the operating agreement among HGEL and affiliates of Exxon Mobil Corporation and China National Offshore Oil Corporation to the merger. An arbitration merits hearing about the applicability of the Stabroek ROFR to the merger has been scheduled for May 2025, with a decision expected in the following three months.</P>
                <HD SOURCE="HD3">B. The Order</HD>
                <P>On January 17, 2025, on the last Federal working day before the change of administrations, the Commission finalized the Order following a 3-to-2 vote. The Order bars Chevron from nominating, designating, or appointing Mr. Hess to the Chevron Board, or allowing Mr. Hess to serve in an advisory or consulting capacity to, or as a representative of, Chevron or the Chevron Board, other than with respect to interactions and discussions with (a) Guyanese government officials about Hess's oil-related and health ministry-related activities in Guyana, and (b) the Salk Institute's Harnessing Plants Initiative.</P>
                <P>By its terms, the Order will terminate in ten years. Unless set aside, the Order will preclude Chevron from fulfilling its contractual obligation to appoint Mr. Hess to the Chevron board upon closing of the merger, and deprive shareholders of the benefit of his service.</P>
                <P>
                    The Respondents acknowledge that a majority of the prior Commission voted to issue the Order pursuant to an Agreement Containing Consent Order among Chevron, Hess, and the Commission staff (the “ACCO”). The Respondents did not sign the ACCO because they agreed with the prior Commission's characterization of the facts, or with its interpretation and application of section 7 or section 5 to those facts. As explicitly noted in the document, the ACCO was “for settlement purposes only and does not constitute an admission . . . that the law has been violated as alleged in the Draft Complaint, or that the facts as alleged in the Draft Complaint, other than jurisdictional facts, are true.” 
                    <SU>5</SU>
                    <FTREF/>
                     Chevron and Hess entered into the ACCO solely to satisfy a key closing condition to their Merger Agreement, and thereby to reduce uncertainty and facilitate a more prompt closing of the proposed transaction, in the best interest of each company's shareholders. As noted in the Ferguson Dissent, in getting the Respondents to agree to the ACCO, “[t]he Commission leveraged its Hart-Scott-Rodino Act authority by threatening to hold up Chevron and Hess's $53 billion merger even though the lack of a plausible section 7 theory had long been obvious.” 
                    <SU>6</SU>
                    <FTREF/>
                     That the Respondents acceded to this leverage should not factor into the Commission's decision whether to reopen and set aside this Order.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Agreement Containing Consent Order, 
                        <E T="03">In the Matter of Chevron Corp. &amp; Hess Corp.,</E>
                         File No. 241-0008 (Sept. 23, 2024), at ¶ 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Ferguson Dissent at 5-6 (citation omitted).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">C. The Respondents' Compliance With the Order</HD>
                <P>Chevron has been in compliance with the Proposed Decision and Order contained in the ACCO since it was executed on September 23, 2024, and with the Order since it was finalized on January 17, 2025, as reflected in the required compliance reports filed by Chevron on October 23, 2024; November 22, 2024; December 20, 2024; and March 17, 2025.</P>
                <HD SOURCE="HD2">II. The Commission Should Reopen and Set Aside the Order in the Public Interest</HD>
                <P>
                    Respondents subject to a Commission decision containing an order which has become effective may file a request that the Commission reopen the proceeding to consider whether the order should be altered, modified, or set aside in whole or in part, if the public interest requires it.
                    <SU>7</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         16 CFR 2.51.
                    </P>
                </FTNT>
                <P>Here, public interest in the effective enforcement of the antitrust laws, as well as in the continued investment in oil and gas production championed by Mr. Hess, is best served by setting aside the Order and allowing Mr. Hess to join Chevron's Board.</P>
                <HD SOURCE="HD3">A. Setting Aside the Order Serves the Public Interest in the Effective Enforcement of the Antitrust Laws, as the Complaint Failed To State a Cognizable Theory of Harm Under Section 7 or Section 5</HD>
                <P>
                    Section 7 prohibits acquisitions the effect of which “may be substantially to lessen competition, or to tend to create a monopoly,” 
                    <SU>8</SU>
                    <FTREF/>
                     and section 5 declares unlawful “unfair methods of competition in or affecting commerce.” 
                    <SU>9</SU>
                    <FTREF/>
                     As noted in the Holyoak Dissent, the Complaint “does not take issue with Chevron's acquisition of Hess Corporation's assets. Nor could it.” 
                    <SU>10</SU>
                    <FTREF/>
                     The Respondents' combined share in the global market for oil and gas is in the low single digits, and Hess's incremental portion of that share—what Hess will add to Chevron post-close—is 
                    <E T="03">de minimis.</E>
                     Even under the agencies' 2023 Merger Guidelines, the Respondents' combined share is far below the level at which a merger could be presumed to harm competition. The fact that the prior Commission, after its months-long investigation into the Respondents' operations, allowed the merger to proceed without any structural or behavioral remedies demonstrates that there are no anticompetitive grounds on which to challenge the combination of these two companies. That fact was amplified by Senator Mike Lee and Congressman Jim Jordan in their November 18, 2024 joint letter to former Chair Khan: “These mergers did not present any anticompetitive concerns, thus the FTC's consent decrees are unwarranted and did nothing to enforce the Clayton Act or protect consumers from anticompetitive harm.” 
                    <SU>11</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         15 U.S.C. 18.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         15 U.S.C. 45(a)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Holyoak Dissent at 2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         Letter from Sen. Mike Lee and Congressman Jim Jordan to Chair Lina Khan (Nov. 18, 2024), at 2, 
                        <E T="03">https://judiciary.house.gov/sites/evo-subsites/republicans-judiciary.house.gov/files/evo-media-document/2024-11-18%20JDJ%20Lee%20to%20Khan%20re%20Exxon%20Pioneer%20Chevron%20Hess%20briefing.pdf.</E>
                    </P>
                </FTNT>
                <P>
                    Rather, the prior Commission relied on a novel theory on which to extract a concession from the parties, focused not on the two companies' asset footprints and oil and gas production, but rather on the appointment of Mr. Hess to Chevron's Board of Directors. 
                    <PRTPAGE P="16133"/>
                    Pointing to certain communications by Mr. Hess with Organization of the Petroleum Exporting Countries (“OPEC”) officials and a representative of an OPEC member State—but without alleging any improper collusion—the Commission alleged that, through the merger, Mr. Hess would have access to Chevron's “broader platform” from which to continue such communications, and in turn increase the likelihood that Chevron would collude with OPEC regarding the supply and price of oil and gas.
                </P>
                <P>This allegation fails to state a cognizable antitrust theory of harm. As highlighted in the Holyoak Dissent,</P>
                <P>Nothing in the complaint alleges that Mr. Hess has ever attempted to, or coordinated with, a rival.</P>
                <STARS/>
                <P>
                    Taking the allegations and the implications against Mr. Hess as true, neither he nor Hess Corporation ever coordinated or attempted to coordinate with Hess Corporation's rivals.
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Holyoak Dissent at 2, 4.
                    </P>
                </FTNT>
                <P>
                    Given that fact, there is no basis under the 2023 Merger Guidelines to conclude the proposed merger would violate section 7 or section 5 under a coordinated effects theory of competitive harm. But as also noted in the Holyoak Dissent, “the tangible and intangible assets of Hess Corporation have nothing to do with the violation of law [alleged in the prior Commission's complaint]—it's all about the acquisition of Mr. Hess.” This theory of harm, Commissioner Holyoak notes, is “farcical” and one that “[c]ertainly no court would endorse.” 
                    <SU>13</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">Id.</E>
                         at 2.
                    </P>
                </FTNT>
                <P>Even were the Respondents to accept that this is a plausible theory of harm under section 7, it fails on its own terms. As highlighted in the Ferguson Dissent, this theory assumes that: (i) Chevron would allow Mr. Hess to continue such communications post-closing of the transaction; (ii) that such communication is made worse by the transaction—a transaction through which Mr. Hess's role would be reduced from CEO and significant shareholder (as he currently is in Hess Corporation) to non-executive member of a thirteen-person Board (as he would be at Chevron post-merger); and (iii) that this conduct would have a significant effect on global oil prices, which, as stated above, is implausible given the Respondents' low combined shares and lack of any coordinated behavior or sharing of competitively sensitive information. The Complaint provides no justification for any of these three assumptions.</P>
                <P>
                    While the former Chair touted the withdrawal of Mr. Hess's nomination to the Chevron Board in exchange for clearance of the Respondents' merger in a list of Commission Accomplishments achieved under her tenure,
                    <SU>14</SU>
                    <FTREF/>
                     the Ferguson Dissent rightly notes that this settlement “does not vindicate the rule of law,” but rather serves to further reduce antitrust enforcement to a “pay-for-peace racket inflict[ing] serious injury on the rule of law—and on the Commission's credibility.” 
                    <SU>15</SU>
                    <FTREF/>
                     Preserving the Commission's credibility is paramount to the public interest in the effective enforcement of the antitrust laws, and this interest is best served by setting aside the Order in recognition of the Complaint's deficiencies.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         Federal Trade Commission Accomplishments, June 2021-January 2025 (Jan. 19, 2025), at 16, 
                        <E T="03">https://www.ftc.gov/system/files/ftc_gov/pdf/ftc-accomplishments-june-2021-january-2025.pdf</E>
                         (claiming the Order and the ExxonMobil/Pioneer settlement “[a]dvanced the increased risk of coordination as a basis for Section 7 liability”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         Ferguson Dissent at 6, 7.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">B. The Public Interest in Continued Investment in Oil and Gas Supply Is Served by Setting Aside the Order</HD>
                <P>
                    In addition to the public's interest in the just enforcement of the antitrust laws, there is a significant public interest in continued investment in oil and gas supply. Ensuring that U.S. oil and gas producers can meet expected increases in consumer demand for energy is vital to the interest of consumers, downstream industries that rely on oil and gas production, as well as U.S. national and energy security.
                    <SU>16</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Exec. Order No. 14156, 90 FR 8433, 8433 (Jan. 29, 2025), 
                        <E T="03">https://www.federalregister.gov/documents/2025/01/29/2025-02003/declaring-a-national-energy-emergency</E>
                         (“The integrity and expansion of our Nation's energy infrastructure—from coast to coast—is an immediate and pressing priority for the protection of the United States' national and economic security.”).
                    </P>
                </FTNT>
                <P>Mr. Hess has spent his career advocating for such an increase in investment to grow oil and gas supply, for the benefit of consumers, workers, and U.S. energy security. Throughout his career, Mr. Hess has been recognized as an industry authority on energy policy. He has been called on to advise U.S. administrations on their energy policy, including as an informal advisor to members of the cabinets of Presidents Clinton, Bush, Obama, Biden, and Trump.</P>
                <P>
                    As CEO of Hess, Mr. Hess has put this advocacy for greater investment into practice. Under Mr. Hess's leadership, Hess has differentiated itself from its peers with the highest levels of cash flow reinvestment in the industry in order to increase future oil and gas supply. This prioritization of reinvestment for long-term production growth is manifest in Hess's global production of oil and gas, which grew from 101 million barrels of oil equivalent in 2018 to 144 million barrels in 2023, an increase of nearly 45 percent.
                    <SU>17</SU>
                    <FTREF/>
                     This reinvestment strategy is projected to yield further robust growth in the near-term: a recent Bloomberg analyst consensus projects Hess will achieve a 14 percent compound annual growth rate (“CAGR”) over the years 2023 to 2025, compared to the median cohort CAGR of two percent.
                    <SU>18</SU>
                    <FTREF/>
                     This projected organic growth rate is approximately double that of Hess's closest peer, and is multiples of that of U.S. major oil and gas producers. Hess, under Mr. Hess's leadership, has chosen to invest its capital in future oil and gas production for the long term, rather than return capital to shareholders.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         Hess Corp., 2020 Annual Report (Mar. 2021), at 7, 
                        <E T="03">https://investors.hess.com/static-files/0869f80e-06ec-419d-b18a-b51d34968c44;</E>
                         Hess Corp., 2023 Annual Report (Feb. 2024), at 12, 
                        <E T="03">https://investors.hess.com/static-files/64c3f1e7-08e2-40b1-9190-ca2492e17343.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         These data are based on FactSet, Enverus, and Bloomberg consensus estimates as of July 8, 2024. The 2023-2025 production growth estimates are pro forma for announced mergers, acquisitions, and divestitures per public company disclosures.
                    </P>
                </FTNT>
                <P>This record shows Mr. Hess's longstanding commitment in investing to grow long-term oil and gas supply; it is this same commitment that first led Chevron to propose his appointment to the Chevron Board under the Merger Agreement, and that would make Mr. Hess an asset to the Chevron Board. At this vital moment when the administration looks to expand oil and gas production, it is in the public interest that Mr. Hess be allowed to continue this work.</P>
                <HD SOURCE="HD2">III. Conclusion</HD>
                <P>
                    The Respondents agree with Chairman Ferguson that “[n]othing in [s]ection 7 requires Mr. Hess to stay off the Chevron board.” 
                    <SU>19</SU>
                    <FTREF/>
                     Consistent with the discussion above, the Respondents respectfully request that the Commission reopen and set aside the Order. Setting aside the Order is consistent with the public interest in the Commission's appropriate and effective enforcement of the antitrust laws, and will promote long-term capital investments to grow American oil and gas supplies.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         Ferguson Dissent at 6-7.
                    </P>
                </FTNT>
                <EXTRACT>
                    <P>Dated: March 27, 2025.</P>
                    <P>Respectfully submitted,</P>
                    <FP SOURCE="FP-DASH"/>
                    <FP>Nelson O. Fitts,</FP>
                    <PRTPAGE P="16134"/>
                    <FP>
                        <E T="03">Wachtell, Lipton, Rosen &amp; Katz, 51 West 52nd Street, New York, New York 10019, Attorney for Respondent Hess Corporation.</E>
                    </FP>
                    <FP SOURCE="FP-DASH"/>
                    <FP>David A. Higbee,</FP>
                    <FP>
                        <E T="03">A&amp;O Shearman, 1101 New York Avenue NW, Washington, DC 20005, Attorney for Respondent Chevron Corporation.</E>
                    </FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06564 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6750-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">FEDERAL TRADE COMMISSION</AGENCY>
                <DEPDOC>[Docket No. C-4815]</DEPDOC>
                <SUBJECT>Petition of Scott Sheffield To Reopen and Set Aside Order</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Trade Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Announcement of petition; request for comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Scott Sheffield, formerly of Pioneer Natural Resources Company (“Pioneer”), has asked the Federal Trade Commission (“FTC” or “Commission”) to reopen and set aside the Commission's Decision and Order entered on January 16, 2025, concerning Exxon Mobil Corporation's acquisition of Pioneer. Publication of Mr. Sheffield's petition is not intended to affect its legal status or its final disposition.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before May 12, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Interested parties may file comments online or on paper, by following the instructions in the Request for Comment part of the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section below. Please write: “Sheffield Petition to Reopen; Docket No. C-4815” on your comment and file your comment online at 
                        <E T="03">https://www.regulations.gov/docket/FTC-2025-0030/document</E>
                         by following the instructions on the web-based form. If you prefer to file your comment on paper, please mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Mail Stop H-144 (Annex M), Washington, DC 20580.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Peter Richman (202-326-2563), Bureau of Competition, Federal Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>Pursuant to section 6(g) of the Federal Trade Commission Act, 15 U.S.C. 46(g), and FTC Rule 2.51, 16 CFR 2.51, notice is hereby given that the above-captioned petition has been filed with the Secretary of the Commission and is being placed on the public record for a period of 30 days. After the period for public comments has expired and no later than 120 days after the date of the filing of the request, the Commission shall determine whether to reopen the proceeding and modify the Order as requested. In making its determination, the Commission will consider, among other information, all timely and responsive comments submitted in connection with this notification.</P>
                <P>
                    The text of the petition is provided below. An electronic copy of the filed petition and any public exhibits attached to it can be obtained from the FTC website at this URL: 
                    <E T="03">https://www.ftc.gov/legal-library/browse/cases-proceedings/241-0004-c-4815-exxon-mobil-corporation-matter.</E>
                </P>
                <P>
                    You can file a comment online or on paper. For the Commission to consider your comment, we must receive it on or before May 12, 2025. Write “Sheffield Petition to Reopen; Docket No. C-4815” on your comment. Your comment—including your name and your State—will be placed on the public record of this proceeding, including, to the extent practicable, on the 
                    <E T="03">www.regulations.gov</E>
                     website.
                </P>
                <P>
                    Because of the agency's heightened security screening, postal mail addressed to the Commission will be subject to delay. We strongly encourage you to submit your comments online through the 
                    <E T="03">www.regulations.gov</E>
                     website. If you prefer to file your comment on paper, write “Sheffield Petition to Reopen; Docket No. C-4815” on your comment and on the envelope, and mail your comment to the following address: Federal Trade Commission, Office of the Secretary, 600 Pennsylvania Avenue NW, Mail Stop H-144 (Annex M), Washington, DC 20580. If possible, submit your paper comment to the Commission by overnight service.
                </P>
                <P>
                    Because your comment will be placed on the publicly accessible website at 
                    <E T="03">www.regulations.gov,</E>
                     you are solely responsible for making sure that your comment does not include any sensitive or confidential information. In particular, your comment should not include any sensitive personal information, such as your or anyone else's Social Security number; date of birth; driver's license number or other State identification number, or foreign country equivalent; passport number; financial account number; or credit or debit card number. You are also solely responsible for making sure your comment does not include any sensitive health information, such as medical records or other individually identifiable health information. In addition, your comment should not include any “trade secret or any commercial or financial information which . . . is privileged or confidential”—as provided by section 6(f) of the FTC Act, 15 U.S.C. 46(f), and FTC Rule 4.10(a)(2), 16 CFR 4.10(a)(2)—including in particular competitively sensitive information such as costs, sales statistics, inventories, formulas, patterns, devices, manufacturing processes, or customer names.
                </P>
                <P>
                    Comments containing material for which confidential treatment is requested must be filed in paper form, must be clearly labeled “Confidential,” and must comply with FTC Rule 4.9(c). In particular, the written request for confidential treatment that accompanies the comment must include the factual and legal basis for the request and must identify the specific portions of the comment to be withheld from the public record. 
                    <E T="03">See</E>
                     FTC Rule 4.9(c). Your comment will be kept confidential only if the General Counsel grants your request in accordance with the law and the public interest. Once your comment has been posted on 
                    <E T="03">www.regulations.gov</E>
                    —as legally required by FTC Rule 4.9(b)—we cannot redact or remove your comment from that website, unless you submit a confidentiality request that meets the requirements for such treatment under FTC Rule 4.9(c), and the General Counsel grants that request.
                </P>
                <P>
                    Visit the FTC website at 
                    <E T="03">https://www.ftc.gov</E>
                     to read this document and the news release describing this matter. The FTC Act and other laws that the Commission administers permit the collection of public comments to consider and use in this proceeding, as appropriate. The Commission will consider all timely and responsive public comments that it receives on or before May 12, 2025. For information on the Commission's privacy policy, including routine uses permitted by the Privacy Act, see 
                    <E T="03">https://www.ftc.gov/site-information/privacy-policy.</E>
                </P>
                <P>
                    <E T="03">Authority:</E>
                     15 U.S.C. 46, 5 U.S.C. 552.
                </P>
                <SIG>
                    <NAME>April J. Tabor,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
                <HD SOURCE="HD1">Text of Petition of Scott Sheffield To Reopen and Set Aside the Order</HD>
                <P>
                    Pursuant to section 5(b) of the Federal Trade Commission Act, 15 U.S.C. 45(b), and section 2.51 of the Federal Trade Commission's Rules of Practice, 16 CFR § 2.51, Scott Sheffield respectfully requests that the Commission set aside and vacate in its entirety the Decision and Order entered on January 16, 2025 in Docket No. C-4815 (“Order”). As contemplated by section 2.51(a) of the Federal Trade Commission's Rules of Practice, 16 CFR 2.51(a), Mr. Sheffield is 
                    <PRTPAGE P="16135"/>
                    a “person . . . subject to a Commission decision containing a rule or order which has become effective,” and is therefore entitled to “file with the Secretary a request that the Commission reopen the proceeding to consider whether the rule or order . . . should be altered, modified, or set aside in whole or in part.” The public interest requires that the Order be set aside and vacated in its entirety. 16 CFR 2.51(b).
                </P>
                <P>
                    After the close of business on the final business day of the last administration, the Federal Trade Commission (“FTC”) by a 3-2 vote issued the Order prohibiting ExxonMobil Corporation (“Exxon”) from appointing Mr. Sheffield to its Board of Directors, prohibiting Exxon from appointing Mr. Sheffield to serve “in an advisory capacity in any way” to Exxon's management, and prohibiting Exxon from appointing thousands of other current or former employees of Pioneer Natural Resources Company (“Pioneer”) to its Board. 
                    <E T="03">See</E>
                     Decision and Order § II. Mr. Sheffield requests that the FTC vacate that Order, which was unsupported by any antitrust law and violates his constitutional and other legally protected rights.
                </P>
                <P>
                    First, in their thoughtful and well-reasoned dissent from the Order, now-Chairman Ferguson and Commissioner Holyoak explained in detail why the Exxon/Pioneer transaction could not be challenged by the FTC on any established theory of antitrust law: (1) Exxon and Pioneer's combined share in the alleged global market—and market concentration metrics generally—falls way below any level of concentration that would be conducive to coordination; (2) the merger does not eliminate a maverick; (3) nothing in the Complaint suggests a post-merger change in incentives that would make the global market conducive to coordination; and (4) one of twelve board members will likely be less able to orchestrate coordination than could that same individual when he was a chief executive officer (and never coordinated the market). 
                    <E T="03">See</E>
                     Dissenting Statement of Comm'r Melissa Holyoak Joined by Comm'r Andrew N. Ferguson at 2 (Jan. 17, 2025) (“Dissenting Statement”). As the Dissenting Statement explains, “There is no reason to believe that Section 7 has been violated, which invalidates any justification for the order.” 
                    <E T="03">Id.</E>
                     at 6.
                </P>
                <P>The FTC premised the Order on a Complaint that was filed publicly in this matter on May 2, 2024. That Complaint alleged that Mr. Sheffield “campaigned to organize anticompetitive coordinated output reductions between and among U.S. crude oil producers, and others, including the Organization of Petroleum Exporting Countries (‘OPEC’), and a related cartel of other oil-producing countries known as OPEC+.” Complaint ¶ 1. As noted by Commissioners Ferguson and Holyoak, however, “the factual interpretations and context of the Complaint, as written, [do] not provide reason to believe that the law ha[s] been violated.” Dissenting Statement at 4. Mr. Sheffield's Comment on the Complaint further dispelled any notion of a “campaign[ ]” of anticompetitive coordination with OPEC, clarifying that, of the supposed “hundreds of text messages with OPEC representatives and officials” decried in the Complaint, “almost all of these were blast text messages containing public information like news articles that went to many recipients without any response or ‘exchange.’ ” Ex. 1, Comment on Behalf of Scott Sheffield at 2 (“Sheffield Comment”). As Commissioners Ferguson and Holyoak noted, “Such contact is far less frequent than would be expected by a central figure allegedly coordinating with OPEC, the world's most well-known output-fixing cartel that has damaged oil customers for decades.” Dissenting Statement at 3.</P>
                <P>
                    The Complaint also alleged that Mr. Sheffield exercised his First Amendment rights in a manner that the three majority commissioners found objectionable: Mr. Sheffield made public statements about oil production, and supported a petition by Pioneer to the Texas Railroad Commission (“TRRC”) during the COVID-19 Pandemic to exercise its statutory authority to regulate oil production in Texas. 
                    <E T="03">See</E>
                     Ex. 1, Sheffield Comment at 15-19. But protected activities cannot be the basis for a law enforcement action. The FTC's claim otherwise is a frontal assault on Mr. Sheffield's constitutionally protected activities, as acknowledged by Commissioners Ferguson and Holyoak. 
                    <E T="03">See</E>
                     Dissenting Statement at 3.
                </P>
                <P>Conspicuously absent from the FTC's Complaint was any allegation that Mr. Sheffield had himself violated the law. The Complaint alleged no instance in which he entered into any agreement in restraint of trade or any other unlawful conduct. Also absent was any viable theory that the combination of Exxon and Pioneer would violate antitrust laws. Pioneer was a comparatively small producer, and its acquisition by Exxon would not have meaningfully changed the market concentration in the global oil market. Nor did the FTC allege otherwise. As noted by the dissenting Commissioners, “With these egregious failings, the Complaint does not provide even an ‘ephemeral possibilit[y]’ of harm, let alone a ‘reason to believe’ the law has been violated.” Dissenting Statement at 2. The lack of legal justification for the Order, standing alone, is sufficient justification to vacate it.</P>
                <P>
                    Second, setting aside and vacating the Order would benefit the efficiency of both the FTC and the federal judiciary. On January 21, 2025, Mr. Sheffield filed a complaint in the Northern District of Texas, Fort Worth Division against the FTC, then-Chair Khan, and Commissioners Slaughter and Bedoya. 
                    <E T="03">See</E>
                     Complaint, 
                    <E T="03">Sheffield</E>
                     v. 
                    <E T="03">U.S. Fed. Trade Comm'n,</E>
                     No. 25-cv-00048 (N.D. Tex. Jan. 21, 2025), ECF No. 1. In his complaint, Mr. Sheffield seeks an order from the district court, 
                    <E T="03">inter alia,</E>
                     “[v]acating the FTC's Final Consent Order in Docket No. C-4815.” 
                    <E T="03">Id.</E>
                     at 53. Setting aside and vacating the Order would resolve those claims and would preserve the FTC's and the United States Attorney's Office's resources in defending the case, as well as the district court's resources in adjudicating the case.
                </P>
                <P>
                    Third, the Order is manifestly contrary to the public interest. The allegations in the Complaint supporting the Order were described by Commissioners Ferguson and Holyoak as “fabricated,” “embarrassing,” “indifferen[t] to First Amendment rights,” “woefully inadequate,” “lawless,” “nonsensical,” and “one of the most ludicrous theories of harm in [the FTC's] merger-enforcement history.” 
                    <E T="03">Id.</E>
                     at 1-2, 4-6. In light of the numerous defects of the Order, which “disregards the public interest,” Commissioners Ferguson and Holyoak invited and encouraged the FTC to “scrutinize[ ]” the “continuing viability of this order” under section 5(b) of the Federal Trade Commission Act. 
                    <E T="03">Id.</E>
                     at 6.
                </P>
                <P>
                    The public interest requires setting aside and vacating the Order. As Commissioners Ferguson and Holyoak noted in their dissenting statement, section 5(b) of the Federal Trade Commission Act permits the FTC to “reopen and alter, modify, or set aside, in whole or in part any report or order . . . whenever in the opinion of the Commission conditions of fact or of law have so changed as to require such action or if the public interest shall so require.” 15 U.S.C. 45(b) (
                    <E T="03">quoted in</E>
                     Dissenting Statement at 6 n.46). The Commission will set aside orders (and order provisions) which “unnecessarily inhibit[ ] respondent[s] from engaging in conduct which, in and of itself, is innocuous and may, in certain circumstances, be procompetitive.” 
                    <E T="03">
                        In the matter of Occidental Petroleum 
                        <PRTPAGE P="16136"/>
                        Corp.,
                    </E>
                     Dkt. No. C-2492, 101 F.T.C. 373, 1974 WL 175259, at *1 (F.T.C. Mar. 9, 1983); 
                    <E T="03">see also, e.g., In the matter of the Readers' Digest Ass'n,</E>
                     Dkt. No. C-2075, 102 F.T.C. 1268, 1971 WL 128725, at *2 (F.T.C. Sept. 30, 1983) (concluding that “the public interest requires eliminating” a provision where “the costs that the [provision] imposes on respondent appear to outweigh any consumer benefits [that it] may confer”). Furthermore, the public interest is served by setting aside orders and provisions that restrict constitutionally protected speech where such restrictions “cause[ ] injury to [respondent] and the public that outweighs any benefit that may be derived from the restriction.” 
                    <E T="03">In the Matter of the American College of Obstetricians and Gynecologists,</E>
                     Dkt. No. C-2855, 104 F.T.C. 524, 1984 WL 565347, at *1 (F.T.C. Aug. 28, 1984).
                </P>
                <P>
                    Here, the Order should be vacated in its entirety because “the Complaint does not provide even an ‘ephemeral possibilit[y]’ of harm, let alone a ‘reason to believe’ the law has been violated.” Dissenting Statement at 2. The fact that the Complaint fails to identify any violation of section 7 “invalidates any justification for the order,” 
                    <E T="03">id.</E>
                     at 6, and confirms that the Order confers no benefit on consumers. In light of the utter lack of justification for the Order, the harm that the Order causes to Mr. Sheffield easily outweighs its nonexistent benefits. 
                    <E T="03">See Readers' Digest Ass'n,</E>
                     102 F.T.C. 1268, 1971 WL 128725, at *2. Furthermore, the only restrictions imposed by the Order—preventing Exxon from appointing Mr. Sheffield or any Pioneer employee to its Board and prohibiting Exxon from appointing Mr. Sheffield to serve as an adviser in any capacity to Exxon's management—“unnecessarily inhibit” Mr. Sheffield, thousands of Pioneer employees, and even Exxon “from engaging in conduct which, in and of itself, is innocuous and may, in certain circumstances, be procompetitive.” 
                    <E T="03">In the matter of Occidental Petroleum Corp.,</E>
                     101 F.T.C. 373, 1974 WL 175259, at *1. Vacatur of the Order is warranted to remove these unnecessary restrictions.
                </P>
                <P>
                    The Order “ignored the public interest by using [the FTC's] Complaint to obtain a consent agreement” that specifically targeted Mr. Sheffield, “an individual who was 
                    <E T="03">not</E>
                     party to the agreement.” Dissenting Statement at 1. The public interest is harmed when an individual's constitutional and other legally protected rights are trampled upon by a federal agency without due process or other protections. As outlined in detail in Mr. Sheffield's Comment, the FTC shared the draft Complaint with Mr. Sheffield only two days before Exxon signed the Consent Order, without ever engaging with Mr. Sheffield's counsel on the allegations in the Complaint. 
                    <E T="03">See</E>
                     Ex. 1, Sheffield Comment at 21-22. The “factual failings” of the Complaint are therefore “exacerbated by the process failings that the Majority embraced in this investigation,” including the Majority's decision to “hide[ ] behind the caption that names only Exxon” despite the fact that the Order directly targets Mr. Sheffield, whose name appears “47 times in an eight-page redacted Complaint.” Dissenting Statement at 4-5.
                </P>
                <P>
                    In addition to violating Mr. Sheffield's constitutional right to due process, the Order and Complaint disregard Mr. Sheffield's First Amendment rights, leveraging his protected government petitioning to support the FTC's flawed narrative that Mr. Sheffield is a purported advocate for collusion among oil producers, 
                    <E T="03">see id.</E>
                     at 4-5. Vacatur of the Order is therefore also warranted to protect Mr. Sheffield's constitutional rights to due process and to petition the government for redress. 
                    <E T="03">See In the Matter of the American College of Obstetricians and Gynecologists,</E>
                     104 F.T.C. 524, 1984 WL 565347, at *2 (modifying order to clarify that “this order shall not be construed to prevent [respondent] from . . . [e]xercising rights permitted under the First Amendment to the United States Constitution to petition any federal or state government, executive agency, or legislative body concerning legislation, rules or procedures.”).
                </P>
                <P>In light of all of these factors, the Order should be set aside and vacated in its entirety.</P>
                <EXTRACT>
                    <P>Dated: March 14, 2025.</P>
                    <P>Respectfully submitted,</P>
                    <FP>
                        <E T="03">/s/ David Gelfand</E>
                    </FP>
                    <FP>David Gelfand,</FP>
                    <FP>Jeremy Calsyn,</FP>
                    <FP>
                        <E T="03">Cleary Gottlieb Steen &amp; Hamilton LLP, 2112 Pennsylvania Avenue NW, Washington, DC 20037, 202-974-1522, Counsel for Scott Sheffield.</E>
                    </FP>
                </EXTRACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06562 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6750-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">GENERAL SERVICES ADMINISTRATION</AGENCY>
                <DEPDOC>[Notice-MA-2025-05; Docket No. 2025-0002; Sequence No. 3]</DEPDOC>
                <SUBJECT>Federal Management Regulation (FMR); Rescinding FMR Bulletin B-2023-55</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Government-wide Policy (OGP), General Services Administration (GSA).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of recission of FMR Bulletin B-2023-55.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>GSA is issuing a notice to rescind Federal Management Regulation (FMR) Bulletin B-2023-55, “Fleet Management Information Systems” dated May 19, 2023 due to recent Executive orders.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Applicability date:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        For clarification of content please contact Mr. Alexander J. Kurien, Deputy Associate Administrator, Office of Government-wide Policy, Office of Asset and Transportation Management, at  202-495-9628 or by email at 
                        <E T="03">vehicle.policy@gsa.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Background</HD>
                <P>
                    GSA is rescinding FMR Bulletin B-2023-55 in line with Executive Orders (E.O.) 14148, 
                    <E T="03">Initial Rescissions of Harmful Executive Orders and Actions,</E>
                     dated January 20, 2025, and E.O. 14154, 
                    <E T="03">Unleashing American Energy,</E>
                     dated January 20, 2025, which revoked E.O. 14057, 
                    <E T="03">Catalyzing Clean Energy Industries and Jobs Through Federal Sustainability,</E>
                     dated December 8, 2021.
                </P>
                <SIG>
                    <NAME>Larry Allen,</NAME>
                    <TITLE>Associate Administrator, Office of Government-wide Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06582 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 6820-14-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>National Institute on Minority Health and Health Disparities; Cancellation of Meeting</SUBJECT>
                <P>
                    Notice is hereby given of the cancellation of the National Institute on Minority Health and Health Disparities Special Emphasis Panel, June 18, 2025, 9:00 a.m. to June 18, 2025, 6:00 p.m., National Institutes of Health, NIMHD, DEM II, Suite 800, 6707 Democracy Boulevard, Bethesda, MD 20892 which 
                    <PRTPAGE P="16137"/>
                    was published in the 
                    <E T="04">Federal Register</E>
                     on April 9, 2025, FR Doc 2025-06088, 90 FR 15256.
                </P>
                <P>This meeting notice is to cancel the meeting scheduled June 18, 2025. This meeting will not be rescheduled.</P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>David W. Freeman,</NAME>
                    <TITLE>Supervisory Program Analyst, Office of Federal Advisory Committee Policy.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06486 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>National Cancer Institute; Notice of Closed Meeting</SUBJECT>
                <P>Pursuant to section 1009 of the Federal Advisory Committee Act, as amended, notice is hereby given of the following meeting.</P>
                <P>The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., as amended. The contract proposals and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the contract proposals, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <EXTRACT>
                    <P>
                        <E T="03">Name of Committee:</E>
                         National Cancer Institute Special Emphasis Panel; FFRDC Review Meeting.
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         May 9, 2025.
                    </P>
                    <P>
                        <E T="03">Time:</E>
                         9:00 a.m. to 6:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate contract proposals.
                    </P>
                    <P>
                        <E T="03">Address:</E>
                         National Cancer Institute Shady Grove, 9609 Medical Center Drive, Room 7W530, Rockville, Maryland 20850.
                    </P>
                    <P>
                        <E T="03">Meeting Format:</E>
                         Virtual Meeting.
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Shamala K. Srinivas, Ph.D., Associate Director, Office of Referral, Review, and Program Coordination, Division of Extramural Activities, National Cancer Institute, NIH, 9609 Medical Center Drive, Room 7W530, Rockville, Maryland 20850, 240-276-6442, 
                        <E T="03">ss537t@nih.gov.</E>
                    </P>
                    <FP>(Catalogue of Federal Domestic Assistance Program Nos. 93.392, Cancer Construction; 93.393, Cancer Cause and Prevention Research; 93.394, Cancer Detection and Diagnosis Research; 93.395, Cancer Treatment Research; 93.396, Cancer Biology Research; 93.397, Cancer Centers Support; 93.398, Cancer Research Manpower; 93.399, Cancer Control, National Institutes of Health, HHS)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>Melanie J. Pantoja, </NAME>
                    <TITLE>Program Analyst, Office of Federal Advisory Committee Policy.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06556 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>National Institute on Minority Health and Health Disparities; Amended Notice of Partially Closed Meeting</SUBJECT>
                <P>
                    Notice is hereby given of a change in the meeting of the National Advisory Council on Minority Health and Health Disparities, May 06, 2025, 10:00 a.m. to May 06, 2025, 05:30 p.m., National Institutes of Health, 31 Center Drive, Bethesda, MD 20892 which was published in the 
                    <E T="04">Federal Register</E>
                     on March 31, 2025, FR Doc 2025-05511, 90 FR 14270.
                </P>
                <P>This meeting notice is being amended to change the meeting format from hybrid to virtual. The meeting is partially Closed to the public.</P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>David W. Freeman,</NAME>
                    <TITLE>Supervisory Program Analyst, Office of Federal Advisory Committee Policy.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06488 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>Prospective Grant of Exclusive License, Inter-Institutional Agreement-Institution Lead: Conductive Polymer Coated Electrodes for Dielectrophoretic Cell Positioning and Electroporation</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Institutes of Health, National Institute of Allergy and Infectious Diseases.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The National Institute of Allergy and Infectious Diseases, an institute of the National Institutes of Health, Department of Health and Human Services, is contemplating the grant of an exclusive, sublicensable patent license to Cambridge Enterprise Limited, University of Cambridge, located in Cambridge, United Kingdom, to practice the inventions embodied in the patent applications listed in the 
                        <E T="02">Supplementary Information</E>
                         section of this notice.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Only written comments and/or applications for a license which are received by the Technology Transfer and Intellectual Property Office, National Institute of Allergy and Infectious Diseases on or before May 2, 2025 will be considered.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Requests for copies of the patent applications, inquiries, and comments relating to the contemplated exclusive patent license should be directed to: Wade Green, Ph.D., Acting Branch Chief, Technology Transfer and Intellectual Property Office, National Institute of Allergy and Infectious Diseases, 5601 Fishers Lane, Suite 2G, MSC9804, Rockville, MD 20852-9804, phone number 301-761-7505, or 
                        <E T="03">wade.green@nih.gov.</E>
                    </P>
                </ADD>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The following represents the intellectual property to be licensed under the prospective agreement: European Patent Application Patent Application No. EP23386021.2, filed March 10, 2023, titled “Conductive Polymer Coated Electrodes for Dielectrophoretic Cell Positioning and Electroporation” (HHS Reference No. E-266-2023-0-EP-01) and International Patent Application No. PCT/EP2024/056247, filed on March 8, 2024, titled “Conductive Polymer Coated Electrodes for Dielectrophoretic Cell Positioning and Electroporation” (HHS Reference No. E-266-2023-0-PC-01). All rights in these inventions have been assigned to Cambridge Enterprise Limited and the Government of the United States of America.</P>
                <P>The prospective patent license will be for the purpose of consolidating patent rights with Cambridge Enterprise Limited, the co-owner of said rights, for commercial development and marketing. Consolidation of these co-owned rights is intended to expedite development of the invention, consistent with the goals of the Bayh-Dole Act codified as 35 U.S.C. 200-212.</P>
                <P>The prospective patent license will be exclusive, and may be limited to those fields of use commensurate in scope with the patent rights. It will be sublicensable, and any sublicenses granted by Cambridge Enterprise Limited in the United Kingdom will be subject to the provisions of 37 CFR part 404.</P>
                <P>
                    The subject patent rights pertain to devices and methods for single-cell electroporation of human cells for clinical uses. Specifically, this subject invention describes certain conductive polymer electrodes that have properties that may allow for their use in the development of microfluidic-based electroporation devices for clinical uses.
                    <PRTPAGE P="16138"/>
                </P>
                <P>This notice is made in accordance with 35 U.S.C. 209 and 37 CFR part 404. The prospective exclusive license will be royalty-bearing, and may be granted unless within fifteen (15) days from the date of this published notice, the National Insitute of Allergy and Infectious Diseases receives written evidence and argument that establishes that the grant of the license would not be consistent with the requirements of 35 U.S.C. 209 and 37 CFR part 404.</P>
                <P>In response to this Notice, the public may file comments or objections. Comments and objections, other than those in the form of a license application, will not be treated confidentially, and may be made publicly available.</P>
                <P>
                    License applications submitted in response to this Notice will be presumed to contain business confidential information and any release of information in these license applications will be made only as required and upon a request under 
                    <E T="03">the Freedom of Information Act,</E>
                     5 U.S.C. 552.
                </P>
                <SIG>
                    <DATED>Dated: April 14, 2025</DATED>
                    <NAME>Surekha Vathyam,</NAME>
                    <TITLE>Director, Technology Transfer and Intellectual Property Office, National Institute of Allergy and Infectious Diseases.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06576 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>National Institute on Minority Health and Health Disparities; Amended Notice of Partially Closed Meeting</SUBJECT>
                <P>
                    Notice is hereby given of a change in the meeting of the National Advisory Council on Minority Health and Health Disparities, May 05, 2025, 10:00 a.m. to May 05, 2025, 05:30 p.m., National Institute of Health, 31 Center Drive, Building 31C, Rooms F&amp;G, D&amp;E, and C, Bethesda, MD 20892 which was published in the 
                    <E T="04">Federal Register</E>
                     on March 31, 2025, FR Doc 2025-05512, 90 FR 14269.
                </P>
                <P>This meeting notice is being amended to change the meeting format from hybrid to virtual. The meeting is partially Closed to the public.</P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>David W. Freeman,</NAME>
                    <TITLE>Supervisory Program Analyst, Office of Federal Advisory Committee Policy.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06487 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>National Institute on Minority Health and Health Disparities; Cancellation of Meeting</SUBJECT>
                <P>
                    Notice is hereby given of the cancellation of the National Institute on Minority Health and Health Disparities Special Emphasis Panel, June 03, 2025, 10:00 a.m. to June 05, 2025, 6:00 p.m., National Institutes of Health, NIMHD, DEM II, Suite 800, 6707 Democracy Boulevard, Bethesda, MD 20892 which was published in the 
                    <E T="04">Federal Register</E>
                     on April 9, 2025, FR Doc 2025-06088, 90 FR 15256.
                </P>
                <P>This meeting notice is to cancel the meeting scheduled June 3, 2025 to June 5, 2025. This meeting will not be rescheduled.</P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>David W. Freeman, </NAME>
                    <TITLE>Supervisory Program Analyst, Office of Federal Advisory Committee Policy.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06491 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>National Institutes of Health</SUBAGY>
                <SUBJECT>National Institute of Neurological Disorders and Stroke; Notice of Meeting</SUBJECT>
                <P>Pursuant to section 1009 of the Federal Advisory Committee Act, as amended, notice is hereby given of a meeting of the National Advisory Neurological Disorders and Stroke Council.</P>
                <P>
                    The meeting will be open to the public as indicated below, with attendance limited to space available. Individuals who plan to attend as well as those who need special assistance, such as sign language interpretation or other reasonable accommodations, must notify the Contact Person listed below in advance of the meeting. The open session will be videocast and can be accessed from the NIH Videocasting and Podcasting website (
                    <E T="03">https://videocast.nih.gov/</E>
                    ).
                </P>
                <P>The meeting will be closed to the public in accordance with the provisions set forth in sections 552b(c)(4) and 552b(c)(6), Title 5, U.S.C., as amended. The grant applications and the discussions could disclose confidential trade secrets or commercial property such as patentable material, and personal information concerning individuals associated with the grant applications, the disclosure of which would constitute a clearly unwarranted invasion of personal privacy.</P>
                <EXTRACT>
                    <P>
                        <E T="03">Name of Committee:</E>
                         National Advisory Neurological Disorders and Stroke Council.
                    </P>
                    <P>
                        <E T="03">Date:</E>
                         May 14-15, 2025.
                    </P>
                    <P>
                        <E T="03">Open:</E>
                         May 14, 2025, 10:00 a.m. to 5:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         Report by the Director, NINDS; Report by the Director, Division of Extramural Activities; and Administrative and Program Developments; and Overview of the NINDS Intramural Program.
                    </P>
                    <P>
                        <E T="03">Open session will be videocast from this link: https://videocast.nih.gov</E>
                        .
                    </P>
                    <P>
                        <E T="03">Closed:</E>
                         May 15, 2025, 10:00 a.m. to 5:00 p.m.
                    </P>
                    <P>
                        <E T="03">Agenda:</E>
                         To review and evaluate grant applications.
                    </P>
                    <P>
                        <E T="03">Place:</E>
                         National Institutes of Health  6001 Executive Boulevard, Room 1131, Rockville, Maryland 20852 (Virtual Meeting).
                    </P>
                    <P>
                        <E T="03">Contact Person:</E>
                         Andrea Meredith, Ph.D.,  Director, Extramural Activities, National Institute of Neurological Disorders and Stroke, NIH, 6001 Executive Blvd., 5th Floor, MSC 9531, Bethesda, MD 20892, (301) 496-9248, 
                        <E T="03">andrea.meredith@nih.gov</E>
                        .
                    </P>
                    <P>Any interested person may file written comments with the committee by forwarding the statement to the Contact Person listed on this notice at least 10 days in advance of the meeting. The statement should include the name, address, telephone number and when applicable, the business or professional affiliation of the interested person.</P>
                    <P>
                        Information is also available on the Institute's/Center's home page: 
                        <E T="03">www.ninds.nih.gov,</E>
                         where an agenda and any additional information for the meeting will be posted when available.
                    </P>
                    <FP>(Catalogue of Federal Domestic Assistance Program Nos. 93.853, Clinical Research Related to Neurological Disorders; 93.854, Biological Basis Research in the Neurosciences, National Institutes of Health, HHS.)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>David W. Freeman, </NAME>
                    <TITLE>Supervisory Program Analyst, Office of Federal Advisory Committee Policy.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06490 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4140-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HEALTH AND HUMAN SERVICES</AGENCY>
                <SUBAGY>Substance Abuse and Mental Health Services Administration</SUBAGY>
                <SUBJECT>Fiscal Year (FY) 2025 Notice of Supplemental Funding Opportunity</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Substance Abuse and Mental Health Services Administration, Department of Health and Human Services (HHS).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of intent to award supplemental funding.</P>
                </ACT>
                <SUM>
                    <PRTPAGE P="16139"/>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This notice is to inform the public that the Substance Abuse and Mental Health Services Administration (SAMHSA) is supporting a supplement (in scope of the parent award) for the Cooperative Agreement for National Suicide Prevention Lifeline and Disaster Distress Helpline recipient, Mental Health Association of New York City, Inc. (DBA Vibrant Emotional Health), funded in FY 2021 under Notice of Funding Opportunity (NOFO) SM 21-005. The recipient may receive up to $100,000,000 and has a project end date of September 2026. The supplemental funding will be used to maintain 988 operations and services, both at local levels and across all subnetwork services. This funding will ensure continuation of all 988 services and supports.</P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        James Wright, Division Director, 988 and Behavioral Health Crisis Coordinating Office, Substance Abuse and Mental Health Services Administration, 5600 Fishers Lane, Rockville, MD 20857, telephone 240-276-1615; email: 
                        <E T="03">james.wright@samhsa.hhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Funding Opportunity Title:</E>
                     Cooperative Agreement for the National Suicide Prevention Lifeline and Disaster Distress Helpline, SM-21-005.
                </P>
                <P>
                    <E T="03">Assistance Listing Number:</E>
                     93.243.
                </P>
                <P>
                    <E T="03">Authority:</E>
                     Section 520E-3 [42 U.S.C. 290bb-36c] of the Public Health Service Act, as amended.
                </P>
                <P>
                    <E T="03">Justification:</E>
                     The 988 Suicide and Crisis Lifeline Cooperative Agreement (988 Lifeline) manages, enhances, and strengthens the 988 Lifeline network that routes individuals in the United States to a network of certified crisis centers that links to local emergency, mental health, and social services resources. The 988 Lifeline is a 24/7 confidential suicide and crisis hotline providing phone, chat, and text services for anyone in the United States experiencing a suicidal crisis or in emotional distress. This supplemental funding will ensure continuation of all active services and supporting infrastructure to ensure stability, safety, privacy, and connection of service.
                </P>
                <P>Since 2005, Vibrant Emotional Health has provided oversight and management of the Suicide Prevention Lifeline and its local call centers and subnetwork functions with a network of over 215+ centers in all fifty states. Vibrant Emotional Health has the infrastructure, experience, and national reach to work with the backup centers, language services, and chat/text organizations to address the increased contact volumes expected in 2025 and beyond. With the transition to 988 accomplished, consistent services, such as ensuring access to the local and national Lifeline backup centers, geo-routing, language services, system evaluation and data reporting, and access are required to fully realize the potential impact to 988 contact service. Through this supplemental funding, SAMHSA and Vibrant can ensure capacity to address increased call, chat and text volume following 988 implementation, further develop connection and support, and strengthen the efficiency and customer experience of the network through unified, integrated and coordinated technology.</P>
                <P>This is not a formal request for application. Assistance will only be provided to Vibrant Emotional Health funded in FY 2021 under the 988 Suicide and Crisis Lifeline Cooperative Agreement (SM-21-005) based on the receipt of a satisfactory application and associated budget that is approved by a review group.</P>
                <SIG>
                    <DATED>Dated: April 14, 2025.</DATED>
                    <NAME>Ann Ferrero,</NAME>
                    <TITLE>Public Health Analyst.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06611 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4162-20-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>U.S. Customs and Border Protection</SUBAGY>
                <SUBJECT>2025 Trade and Cargo Security Summit</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. Customs and Border Protection, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of 2025 Trade and Cargo Security Summit.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This document announces that U.S. Customs and Border Protection (CBP) will convene the 2025 Trade and Cargo Security (TCS) Summit in New Orleans, LA, on May 6-8, 2025. The 2025 TCS Summit will be open for the public to attend in person or via webinar. The 2025 TCS Summit will feature CBP personnel, members of the trade community, and members of other government agencies in panel discussions on CBP's role in international trade initiatives and programs. Members of the international trade and transportation communities and other interested parties are encouraged to attend.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Tuesday, May 6, 2025 (opening remarks and general sessions, 8:00 a.m.-5:00 p.m. CDT), Wednesday, May 7, 2025 (breakout sessions, 8:00 a.m.-5:00 p.m. CDT), and Thursday, May 8, 2025 (breakout sessions, 8:00 a.m.-12:30 p.m. CDT).</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>The 2025 Trade and Cargo Security Summit will be held at the Hilton New Orleans Riverside at Two Poydras Street, New Orleans, LA 70130. Directional signage will be displayed throughout the event space for registration, the sessions, and the exhibits.</P>
                    <P>
                        <E T="03">Registration:</E>
                         Registration is open. Registration to attend in person will close April 24, 2025, at 4:00 p.m. EDT. Registration to attend virtually via webcast will close May 1, 2025, at 4:00 p.m. EDT. Registration information may be found on the event web page at 
                        <E T="03">https://inevent.com/en/USCustomsandBorderProtection-1686596630/2025TFCSSummit/hotsite.php.</E>
                         All registrations must be made online and will be confirmed with payment by credit card only. The registration fee to attend in person is $328.00 per person. The registration fee to attend virtually via Chime webcast is $28.00 per person. Interested parties are requested to register immediately as space is limited. Members of the public who are pre-registered to attend and later need to cancel, may do so by using the link from their confirmation email or sending an email to 
                        <E T="03">TFCSSummit@cbp.dhs.gov</E>
                        . Please include your name and confirmation number with your cancellation request. Cancellation requests made after Friday, April 11, 2025, will not receive a refund.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mrs. Daisy Castro, Office of Trade Relations, U.S. Customs and Border Protection at (202) 344-1440 or at 
                        <E T="03">TFCSSummit@cbp.dhs.gov.</E>
                         The most current 2025 TCS Summit information can be found at 
                        <E T="03">https://inevent.com/en/USCustomsandBorderProtection-1686596630/2025TFCSSummit/hotsite.php.</E>
                    </P>
                    <P>
                        For information on facilities or services for individuals with disabilities or to request special assistance at the meeting, please contact Mrs. Daisy Castro, Office of Trade Relations, U.S. Customs and Border Protection at (202) 344-1440 or at 
                        <E T="03">TFCSSummit@cbp.dhs.gov,</E>
                         as soon as possible.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    This document announces that U.S. Customs and Border Protection (CBP) will convene the 2025 Trade and Cargo Security (TCS) Summit in New Orleans, LA, on May 6-8, 2025. The format of the 2025 TCS Summit will consist of general sessions on the first day and breakout sessions on the second and third days. The 2025 TCS Summit will feature panels composed of CBP 
                    <PRTPAGE P="16140"/>
                    personnel, members of the trade community, and members of other government agencies. The panel discussions will address various topics of interest to the trade community. The 2025 TCS Summit agenda will be posted on the CBP website: 
                    <E T="03">https://inevent.com/en/USCustomsandBorderProtection-1686596630/2025TFCSSummit/hotsite.php.</E>
                </P>
                <P>
                    Hotel accommodations have been made available at the Hilton New Orleans Riverside at Two Poydras Street, New Orleans, LA 70130. Hotel room block reservation information can be found on the event web page at 
                    <E T="03">https://inevent.com/en/USCustomsandBorderProtection-1686596630/2025TFCSSummit/hotsite.php.</E>
                </P>
                <SIG>
                    <NAME>George Bogden,</NAME>
                    <TITLE>Executive Director, Office of Trade Relations.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06574 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9111-14-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID FEMA-2025-0002]</DEPDOC>
                <SUBJECT>Final Flood Hazard Determinations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Flood hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where applicable, in the supporting Flood Insurance Study (FIS) reports have been made final for the communities listed in the table below.</P>
                    <P>The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having an effect in order to qualify or remain qualified for participation in the Federal Emergency Management Agency's (FEMA's) National Flood Insurance Program (NFIP).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The date of September 19, 2025 has been established for the FIRM and, where applicable, the supporting FIS report showing the new or modified flood hazard information for each community.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The FIRM, and if applicable, the FIS report containing the final flood hazard information for each community is available for inspection at the respective Community Map Repository address listed in the tables below and will be available online through the FEMA Map Service Center at 
                        <E T="03">https://msc.fema.gov</E>
                         by the date indicated above.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rick Sacbibit, Chief, Engineering Services Branch, Risk Analysis, Planning &amp; Information Directorate, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov;</E>
                         or visit the FEMA Mapping and Insurance eXchange (FMIX) online at 
                        <E T="03">https://www.floodmaps.fema.gov/fhm/fmx_main.html.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Federal Emergency Management Agency (FEMA) makes the final determinations listed below for the new or modified flood hazard information for each community listed. Notification of these changes has been published in newspapers of local circulation and 90 days have elapsed since that publication. The Deputy Associate Administrator for Insurance and Mitigation has resolved any appeals resulting from this notification.</P>
                <P>This final notice is issued in accordance with section 110 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR part 67. FEMA has developed criteria for floodplain management in floodprone areas in accordance with 44 CFR part 60.</P>
                <P>
                    Interested lessees and owners of real property are encouraged to review the new or revised FIRM and FIS report available at the address cited below for each community or online through the FEMA Map Service Center at 
                    <E T="03">https://msc.fema.gov.</E>
                </P>
                <P>The flood hazard determinations are made final in the watersheds and/or communities listed in the table below.</P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance No. 97.022, “Flood Insurance.”)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Kristin E. Fontenot,</NAME>
                    <TITLE>Assistant Administrator, Risk Analysis, Planning &amp; Information Directorate, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s100,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Community</CHED>
                        <CHED H="1">Community map repository address</CHED>
                    </BOXHD>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Mendocino County, California and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2281</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Ukiah</ENT>
                        <ENT>City Hall, 300 Seminary Avenue, Ukiah, CA 95482.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Unincorporated Areas of Mendocino County</ENT>
                        <ENT>Mendocino County Planning and Building Services Department, 860 North Bush Street, Ukiah, CA 95482.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Greene County, Missouri and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-1914, FEMA-B-2379</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Ash Grove</ENT>
                        <ENT>City Hall, 100 West Main Street, Ash Grove, MO 65604.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Battlefield</ENT>
                        <ENT>City Hall, 5434 South Tower Drive, Battlefield, MO 65619.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Fair Grove</ENT>
                        <ENT>City Hall, 81 South Orchard Boulevard, Fair Grove, MO 65648.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Republic</ENT>
                        <ENT>City Hall, 4221 South Wilson's Creek Boulevard, Republic, MO 65738.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Springfield</ENT>
                        <ENT>Busch Municipal Building, 840 North Boonville Avenue, Springfield, MO 65802.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Strafford</ENT>
                        <ENT>City Hall, 126 South Washington Avenue, Strafford, MO 65757.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Willard</ENT>
                        <ENT>City Hall, 224 West Jackson Street, Willard, MO 65781.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Unincorporated Areas of Greene County</ENT>
                        <ENT>Greene County Courthouse, 940 North Boonville Avenue, Springfield, MO 65802.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <PRTPAGE P="16141"/>
                        <ENT I="21">
                            <E T="02">Franklin County, North Carolina and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2389</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00" RUL="s">
                        <ENT I="01">Unincorporated Areas of Franklin County</ENT>
                        <ENT>Franklin County Planning and Inspections, 127 South Bickett Boulevard, Louisburg, NC 27549.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Halifax County, North Carolina and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2389</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Roanoke Rapids</ENT>
                        <ENT>Planning and Development Department, 1040 Roanoke Avenue, First Floor, Roanoke Rapids, NC 27870.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Enfield</ENT>
                        <ENT>Town Hall, 121 Southeast Railroad Street, Enfield, NC 27823.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Halifax</ENT>
                        <ENT>Town Hall, 24 South King Street, Halifax, NC 27839.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Scotland Neck</ENT>
                        <ENT>Town Hall, 1310 Main Street, Scotland Neck, NC 27874.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Weldon</ENT>
                        <ENT>Town Hall, 109 Washington Avenue, Weldon, NC 27890.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Unincorporated Areas of Halifax County</ENT>
                        <ENT>Halifax County Planning and Zoning, 15 West Pittsylvania Street, Halifax, NC 27839.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Nash County, North Carolina and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2389</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00" RUL="s">
                        <ENT I="01">Unincorporated Areas of Nash County</ENT>
                        <ENT>Nash County Planning Department, 120 West Washington Street, Suite 2110, Nashville, NC 27856.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Warren County, North Carolina and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2389</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Town of Warrenton</ENT>
                        <ENT>Town Hall, 113 South Bragg Street, Warrenton, NC 27589.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Unincorporated Areas of Warren County</ENT>
                        <ENT>Warren County Planning Department, 542 West Ridgeway Street, Warrenton, NC 27589.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Golden Valley County, North Dakota and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2426</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Beach</ENT>
                        <ENT>City Hall, 153 East Main Street, Beach, ND 58621.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Unincorporated Areas of Golden Valley County</ENT>
                        <ENT>Golden Valley County Courthouse, 150 1st Avenue SE, Beach, ND 58621.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Charlotte County, Virginia and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2432</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Town of Charlotte Court House</ENT>
                        <ENT>Town Office, 350 George Washington Highway, Charlotte Court House, VA 23923.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Drakes Branch</ENT>
                        <ENT>Town Office, 4801 Drakes Branch Main Street, Drakes Branch, VA 23937.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Phenix</ENT>
                        <ENT>Town Office, 6860 Phenix Main Street, Phenix, VA 23959.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Unincorporated Areas of Charlotte County</ENT>
                        <ENT>Charlotte County Administration Building, 250 LeGrande Avenue, Suite A, Charlotte Court House, VA 23923.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Hardin County, Illinois and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2179, FEMA-B-2408</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Rosiclare</ENT>
                        <ENT>City Hall, 632 Main Street, Rosiclare, IL 62982.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Unincorporated Areas of Hardin County</ENT>
                        <ENT>Hardin County Courthouse, 102 East Market Street, Elizabethtown, IL 62931.</ENT>
                    </ROW>
                </GPOTABLE>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06601 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID FEMA-2025-0002; Internal Agency Docket No. FEMA-B-2516]</DEPDOC>
                <SUBJECT>Proposed Flood Hazard Determinations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Comments are requested on proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for the communities listed in the table below. The purpose of this notice is to seek general information and comment regarding the preliminary FIRM, and 
                        <PRTPAGE P="16142"/>
                        where applicable, the FIS report that the Federal Emergency Management Agency (FEMA) has provided to the affected communities. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP).
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are to be submitted on or before July 16, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The Preliminary FIRM, and where applicable, the FIS report for each community are available for inspection at both the online location 
                        <E T="03">https://hazards.fema.gov/femaportal/prelimdownload</E>
                         and the respective Community Map Repository address listed in the tables below. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                        <E T="03">https://msc.fema.gov</E>
                         for comparison.
                    </P>
                    <P>
                        You may submit comments, identified by Docket No. FEMA-B-2516, to Rick Sacbibit, Chief, Engineering Services Branch, Risk Analysis, Planning &amp; Information Directorate, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rick Sacbibit, Chief, Engineering Services Branch, Risk Analysis, Planning &amp; Information Directorate, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov;</E>
                         or visit the FEMA Mapping and Insurance eXchange (FMIX) online at 
                        <E T="03">https://www.floodmaps.fema.gov/fhm/fmx_main.html.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>FEMA proposes to make flood hazard determinations for each community listed below, in accordance with section 110 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR 67.4(a).</P>
                <P>These proposed flood hazard determinations, together with the floodplain management criteria required by 44 CFR 60.3, are the minimum that are required. They should not be construed to mean that the community must change any existing ordinances that are more stringent in their floodplain management requirements. The community may at any time enact stricter requirements of its own or pursuant to policies established by other Federal, State, or regional entities. These flood hazard determinations are used to meet the floodplain management requirements of the NFIP.</P>
                <P>The communities affected by the flood hazard determinations are provided in the tables below. Any request for reconsideration of the revised flood hazard information shown on the Preliminary FIRM and FIS report that satisfies the data requirements outlined in 44 CFR 67.6(b) is considered an appeal. Comments unrelated to the flood hazard determinations also will be considered before the FIRM and FIS report become effective.</P>
                <P>
                    Use of a Scientific Resolution Panel (SRP) is available to communities in support of the appeal resolution process. SRPs are independent panels of experts in hydrology, hydraulics, and other pertinent sciences established to review conflicting scientific and technical data and provide recommendations for resolution. Use of the SRP only may be exercised after FEMA and local communities have been engaged in a collaborative consultation process for at least 60 days without a mutually acceptable resolution of an appeal. Additional information regarding the SRP process can be found online at 
                    <E T="03">https://www.floodsrp.org/pdfs/srp_overview.pdf.</E>
                </P>
                <P>
                    The watersheds and/or communities affected are listed in the tables below. The Preliminary FIRM, and where applicable, FIS report for each community are available for inspection at both the online location 
                    <E T="03">https://hazards.fema.gov/femaportal/prelimdownload</E>
                     and the respective Community Map Repository address listed in the tables. For communities with multiple ongoing Preliminary studies, the studies can be identified by the unique project number and Preliminary FIRM date listed in the tables. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                    <E T="03">https://msc.fema.gov</E>
                     for comparison.
                </P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance No. 97.022, “Flood Insurance.”)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Kristin E. Fontenot,</NAME>
                    <TITLE>Assistant Administrator, Risk Analysis, Planning &amp; Information Directorate, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s100,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Community</CHED>
                        <CHED H="1">Community map repository address</CHED>
                    </BOXHD>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Camp County, Texas and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Project: 23-06-0036S Preliminary Date: October 4, 2024</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Pittsburg</ENT>
                        <ENT>City Hall, 200 Rusk Street, Pittsburg, TX 75686.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Town of Rocky Mound</ENT>
                        <ENT>Rocky Mound City Hall, 16 County Road 2222, Pittsburg, TX 75686.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Unincorporated Areas of Camp County</ENT>
                        <ENT>Camp County Courthouse, 126 Church Street, Pittsburg, TX 75686.</ENT>
                    </ROW>
                </GPOTABLE>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06599 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID FEMA-2025-0002]</DEPDOC>
                <SUBJECT>Final Flood Hazard Determinations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Flood hazard determinations, which may include additions or modifications of Base Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, or regulatory floodways on the Flood Insurance Rate Maps (FIRMs) and where applicable, in the supporting Flood Insurance Study (FIS) reports have been made final for the communities listed in the table below. The FIRM and FIS report are the basis of the floodplain management measures that a community is required either to adopt or to show evidence of having an effect in order to qualify or remain qualified for participation in the Federal Emergency Management Agency's (FEMA's) National Flood Insurance Program (NFIP).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The date of September 5, 2025 has been established for the FIRM and, where applicable, the supporting FIS report showing the new or modified flood hazard information for each community.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The FIRM, and if applicable, the FIS report containing the final flood hazard information for each 
                        <PRTPAGE P="16143"/>
                        community is available for inspection at the respective Community Map Repository address listed in the tables below and will be available online through the FEMA Map Service Center at 
                        <E T="03">https://msc.fema.gov</E>
                         by the date indicated above.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rick Sacbibit, Chief, Engineering Services Branch, Risk Analysis, Planning &amp; Information Directorate, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov;</E>
                         or visit the FEMA Mapping and Insurance eXchange (FMIX) online at 
                        <E T="03">https://www.floodmaps.fema.gov/fhm/fmx_main.html.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Federal Emergency Management Agency (FEMA) makes the final determinations listed below for the new or modified flood hazard information for each community listed. Notification of these changes has been published in newspapers of local circulation and 90 days have elapsed since that publication. The Deputy Associate Administrator for Insurance and Mitigation has resolved any appeals resulting from this notification.</P>
                <P>This final notice is issued in accordance with section 110 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR part 67. FEMA has developed criteria for floodplain management in floodprone areas in accordance with 44 CFR part 60.</P>
                <P>
                    Interested lessees and owners of real property are encouraged to review the new or revised FIRM and FIS report available at the address cited below for each community or online through the FEMA Map Service Center at 
                    <E T="03">https://msc.fema.gov.</E>
                </P>
                <P>The flood hazard determinations are made final in the watersheds and/or communities listed in the table below.</P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance No. 97.022, “Flood Insurance.”)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Kristin E. Fontenot,</NAME>
                    <TITLE>Assistant Administrator, Risk Analysis, Planning &amp; Information Directorate, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s100,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Community</CHED>
                        <CHED H="1">Community map repository address</CHED>
                    </BOXHD>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Deuel County, Nebraska and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2423</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Chappell</ENT>
                        <ENT>City Hall, 757 2nd Street, Chappell, NE 69129.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Unincorporated Areas of Deuel County</ENT>
                        <ENT>Deuel County Clerk's Office, 718 3rd Street, Chappell, NE 69129.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Village of Big Springs</ENT>
                        <ENT>Village Office, 403 Pine Street, Big Springs, NE 69122.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Wayne County, Nebraska and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-2423</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Wayne</ENT>
                        <ENT>City Hall, 306 Pearl Street, Wayne, NE 68787.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Unincorporated Areas of Wayne County</ENT>
                        <ENT>Wayne County Courthouse, 510 Pearl Street, Wayne, NE 68787.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Village of Carroll</ENT>
                        <ENT>Community Hall, 502 Main Street, Carroll, NE 68723.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Village of Hoskins</ENT>
                        <ENT>Community Center, 101 South Main Street, Hoskins, NE 68740.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Village of Sholes</ENT>
                        <ENT>Village of Sholes Clerk's Office, 56187 Sholes Terrace, Randolph, NE 68771.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Village of Winside</ENT>
                        <ENT>Village Clerk's Office, 424 Main Street, Winside, NE 68790.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Cass County, North Dakota (All Jurisdictions)</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Docket No.: FEMA-B-1915 and B-2388</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Amenia</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Argusville</ENT>
                        <ENT>Argusville Community Center, 107 Northern Drive, Argusville, ND 58005.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Arthur</ENT>
                        <ENT>Community Hall, 340 Main Street, Arthur, ND 58006.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Casselton</ENT>
                        <ENT>City Hall, 702 1st Street N, Casselton, ND 58012.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Davenport</ENT>
                        <ENT>City Hall, 115 4th Avenue, Davenport, ND 58021.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Fargo</ENT>
                        <ENT>City Hall, 225 4th Street N, Fargo, ND 58102.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Harwood</ENT>
                        <ENT>City Office, 108 Main Street, Harwood, ND 58042.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Horace</ENT>
                        <ENT>City Hall, 215 Park Drive E, Horace, ND 58047.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Hunter</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Kindred</ENT>
                        <ENT>City Hall, 31 5th Avenue N, Kindred, ND 58051.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Mapleton</ENT>
                        <ENT>City Hall, 651 2nd Street, Mapleton, ND 58059.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Reiles Acres</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of West Fargo</ENT>
                        <ENT>City Hall, 800 4th Avenue E, Suite 1, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Addison</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Amenia</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Arthur</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Berlin</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Casselton</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Davenport</ENT>
                        <ENT>Residence, 3514 41st Avenue S, Fargo, ND 58014.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Durbin</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="16144"/>
                        <ENT I="01">Township of Everest</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Gardner</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Harmony</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Harwood</ENT>
                        <ENT>Clerk, Zoning and Administrator's Office, 126 Brooktree Park, Harwood, ND 58042.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Highland</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Hunter</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Maple River</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Mapleton</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Noble</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Normanna</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Pleasant</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Raymond</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Reed</ENT>
                        <ENT>Reed Township Hall, 1851 County Road 17 N, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Rush River</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Walburg</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Warren</ENT>
                        <ENT>Warren Township Chairman's Office, 9605 81st Street S, Horace, ND 58047.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Watson</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Township of Wiser</ENT>
                        <ENT>Cass County Planning Office, 1201 Main Avenue W, West Fargo, ND 58078.</ENT>
                    </ROW>
                </GPOTABLE>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06600 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID FEMA-2025-0002; Internal Agency Docket No. FEMA-B-2515]</DEPDOC>
                <SUBJECT>Proposed Flood Hazard Determinations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Comments are requested on proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for the communities listed in the table below. The purpose of this notice is to seek general information and comment regarding the preliminary FIRM, and where applicable, the FIS report that the Federal Emergency Management Agency (FEMA) has provided to the affected communities. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are to be submitted on or before July 16, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The Preliminary FIRM, and where applicable, the FIS report for each community are available for inspection at both the online location 
                        <E T="03">https://hazards.fema.gov/femaportal/prelimdownload</E>
                         and the respective Community Map Repository address listed in the tables below. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                        <E T="03">https://msc.fema.gov</E>
                         for comparison.
                    </P>
                    <P>
                        You may submit comments, identified by Docket No. FEMA-B-2515, to Rick Sacbibit, Chief, Engineering Services Branch, Risk Analysis, Planning &amp; Information Directorate, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rick Sacbibit, Chief, Engineering Services Branch, Risk Analysis, Planning &amp; Information Directorate, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov;</E>
                         or visit the FEMA Mapping and Insurance eXchange (FMIX) online at 
                        <E T="03">https://www.floodmaps.fema.gov/fhm/fmx_main.html.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>FEMA proposes to make flood hazard determinations for each community listed below, in accordance with section 110 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR 67.4(a).</P>
                <P>
                    These proposed flood hazard determinations, together with the floodplain management criteria required by 44 CFR 60.3, are the minimum that are required. They should not be construed to mean that the community must change any existing ordinances that are more stringent in their floodplain management requirements. The community may at any time enact 
                    <PRTPAGE P="16145"/>
                    stricter requirements of its own or pursuant to policies established by other Federal, State, or regional entities. These flood hazard determinations are used to meet the floodplain management requirements of the NFIP.
                </P>
                <P>The communities affected by the flood hazard determinations are provided in the tables below. Any request for reconsideration of the revised flood hazard information shown on the Preliminary FIRM and FIS report that satisfies the data requirements outlined in 44 CFR 67.6(b) is considered an appeal. Comments unrelated to the flood hazard determinations also will be considered before the FIRM and FIS report become effective.</P>
                <P>
                    Use of a Scientific Resolution Panel (SRP) is available to communities in support of the appeal resolution process. SRPs are independent panels of experts in hydrology, hydraulics, and other pertinent sciences established to review conflicting scientific and technical data and provide recommendations for resolution. Use of the SRP only may be exercised after FEMA and local communities have been engaged in a collaborative consultation process for at least 60 days without a mutually acceptable resolution of an appeal. Additional information regarding the SRP process can be found online at 
                    <E T="03">https://www.floodsrp.org/pdfs/srp_overview.pdf.</E>
                </P>
                <P>
                    The watersheds and/or communities affected are listed in the tables below. The Preliminary FIRM, and where applicable, FIS report for each community are available for inspection at both the online location 
                    <E T="03">https://hazards.fema.gov/femaportal/prelimdownload</E>
                     and the respective Community Map Repository address listed in the tables. For communities with multiple ongoing Preliminary studies, the studies can be identified by the unique project number and Preliminary FIRM date listed in the tables. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                    <E T="03">https://msc.fema.gov</E>
                     for comparison.
                </P>
                <EXTRACT>
                    <P>(Catalog of Federal Domestic Assistance No. 97.022, “Flood Insurance.”)</P>
                </EXTRACT>
                <SIG>
                    <NAME>Kristin E. Fontenot,</NAME>
                    <TITLE>Assistant Administrator, Risk Analysis, Planning &amp; Information Directorate, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s100,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Community</CHED>
                        <CHED H="1">Community map repository address</CHED>
                    </BOXHD>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Fairfax County, Virginia and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Project: 14-03-3327S Preliminary Date: April 30, 2021 and August 30, 2024</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">Town of Herndon</ENT>
                        <ENT>Municipal Center, 777 Lynn Street, Herndon, VA 20170.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Unincorporated Areas of Fairfax County</ENT>
                        <ENT>Fairfax County Government Center, 12000 Government Center Parkway, Suite 449, Fairfax, VA 22035.</ENT>
                    </ROW>
                </GPOTABLE>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06598 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID FEMA-2025-0002; Internal Agency Docket No. FEMA-B-2518]</DEPDOC>
                <SUBJECT>Proposed Flood Hazard Determinations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>Comments are requested on proposed flood hazard determinations, which may include additions or modifications of any Base Flood Elevation (BFE), base flood depth, Special Flood Hazard Area (SFHA) boundary or zone designation, or regulatory floodway on the Flood Insurance Rate Maps (FIRMs), and where applicable, in the supporting Flood Insurance Study (FIS) reports for the communities listed in the table below. The purpose of this notice is to seek general information and comment regarding the preliminary FIRM, and where applicable, the FIS report that the Federal Emergency Management Agency (FEMA) has provided to the affected communities. The FIRM and FIS report are the basis of the floodplain management measures that the community is required either to adopt or to show evidence of having in effect in order to qualify or remain qualified for participation in the National Flood Insurance Program (NFIP).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments are to be submitted on or before July 16, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The Preliminary FIRM, and where applicable, the FIS report for each community are available for inspection at both the online location 
                        <E T="03">https://hazards.fema.gov/femaportal/prelimdownload</E>
                         and the respective Community Map Repository address listed in the tables below. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                        <E T="03">https://msc.fema.gov</E>
                         for comparison.
                    </P>
                    <P>
                        You may submit comments, identified by Docket No. FEMA-B-2518, to Rick Sacbibit, Chief, Engineering Services Branch, Risk Analysis, Planning &amp; Information Directorate, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rick Sacbibit, Chief, Engineering Services Branch, Risk Analysis, Planning &amp; Information Directorate, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov;</E>
                         or visit the FEMA Mapping and Insurance eXchange (FMIX) online at 
                        <E T="03">https://www.floodmaps.fema.gov/fhm/fmx_main.html.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>FEMA proposes to make flood hazard determinations for each community listed below, in accordance with section 110 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4104, and 44 CFR 67.4(a).</P>
                <P>These proposed flood hazard determinations, together with the floodplain management criteria required by 44 CFR 60.3, are the minimum that are required. They should not be construed to mean that the community must change any existing ordinances that are more stringent in their floodplain management requirements. The community may at any time enact stricter requirements of its own or pursuant to policies established by other Federal, State, or regional entities. These flood hazard determinations are used to meet the floodplain management requirements of the NFIP.</P>
                <P>
                    The communities affected by the flood hazard determinations are provided in the tables below. Any request for reconsideration of the revised flood hazard information shown on the Preliminary FIRM and FIS report that satisfies the data requirements outlined in 44 CFR 67.6(b) is considered 
                    <PRTPAGE P="16146"/>
                    an appeal. Comments unrelated to the flood hazard determinations also will be considered before the FIRM and FIS report become effective.
                </P>
                <P>
                    Use of a Scientific Resolution Panel (SRP) is available to communities in support of the appeal resolution process. SRPs are independent panels of experts in hydrology, hydraulics, and other pertinent sciences established to review conflicting scientific and technical data and provide recommendations for resolution. Use of the SRP only may be exercised after FEMA and local communities have been engaged in a collaborative consultation process for at least 60 days without a mutually acceptable resolution of an appeal. Additional information regarding the SRP process can be found online at 
                    <E T="03">https://www.floodsrp.org/pdfs/srp_overview.pdf.</E>
                </P>
                <P>
                    The watersheds and/or communities affected are listed in the tables below. The Preliminary FIRM, and where applicable, FIS report for each community are available for inspection at both the online location 
                    <E T="03">https://hazards.fema.gov/femaportal/prelimdownload</E>
                     and the respective Community Map Repository address listed in the tables. For communities with multiple ongoing Preliminary studies, the studies can be identified by the unique project number and Preliminary FIRM date listed in the tables. Additionally, the current effective FIRM and FIS report for each community are accessible online through the FEMA Map Service Center at 
                    <E T="03">https://msc.fema.gov</E>
                     for comparison.
                </P>
                <EXTRACT>
                    <FP>(Catalog of Federal Domestic Assistance No. 97.022, “Flood Insurance.”)</FP>
                </EXTRACT>
                <SIG>
                    <NAME>Kristin E. Fontenot,</NAME>
                    <TITLE>Assistant Administrator, Risk Analysis, Planning &amp; Information Directorate, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
                <GPOTABLE COLS="2" OPTS="L2,nj,tp0,i1" CDEF="s100,r100">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Community</CHED>
                        <CHED H="1">Community map repository address</CHED>
                    </BOXHD>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Texas County, Missouri and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Project: 19-07-0074S Preliminary Date: September 12, 2024</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Cabool</ENT>
                        <ENT>City Hall, 618 Main Street, Cabool, MO 65689.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Houston</ENT>
                        <ENT>City Hall, 601 South Grand Avenue, Houston, MO 65483.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Licking</ENT>
                        <ENT>City Hall, 125 South Main Street, Licking, MO 65542.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Summersville</ENT>
                        <ENT>City Hall, 195 Rogers Avenue, Summersville, MO 65571.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Unincorporated Areas of Texas County</ENT>
                        <ENT>Texas County Administrative Center, 210 North Grand Avenue, Houston, MO 65483.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Village of Plato</ENT>
                        <ENT>Texas County Administrative Center, 210 North Grand Avenue, Houston, MO 65483.</ENT>
                    </ROW>
                    <ROW RUL="s">
                        <ENT I="01">Village of Raymondville</ENT>
                        <ENT>Village Hall, 209 East Highway B, Raymondville, MO 65555.</ENT>
                    </ROW>
                    <ROW EXPSTB="01">
                        <ENT I="21">
                            <E T="02">Webster County, Missouri and Incorporated Areas</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="01" RUL="s">
                        <ENT I="21">
                            <E T="02">Project: 20-07-0039S Preliminary Date: September 30, 2024</E>
                        </ENT>
                    </ROW>
                    <ROW EXPSTB="00">
                        <ENT I="01">City of Marshfield</ENT>
                        <ENT>City Hall, 798 South Marshall Street, Marshfield, MO 65706.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Rogersville</ENT>
                        <ENT>City Hall, 211 East Center Street, Rogersville, MO 65742.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">City of Seymour</ENT>
                        <ENT>City Hall, 123 West Market Street, Seymour, MO 65746.</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Unincorporated Areas of Webster County</ENT>
                        <ENT>Webster County Courthouse, 101 South Crittenden Street, Marshfield, MO 65706.</ENT>
                    </ROW>
                </GPOTABLE>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06602 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID: FEMA-2024-0038; OMB No. 1660-0132]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities: Submission for OMB Review, Comment Request; Consolidated FEMA-National Training and Education Division (NTED) Level 3 Training Evaluation Forms</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day Notice of Reinstatement and Request for Comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Federal Emergency Management Agency (FEMA) will submit the information collection abstracted below to the Office of Management and Budget for review and clearance in accordance with the requirements of the Paperwork Reduction Act of 1995. FEMA invites the general public to take this opportunity to comment on a reinstatement, with change, of a previously approved information collection. In accordance with the requirements of the Paperwork Reduction Act of 1995, this notice seeks comments concerning the consolidation of all previous instruments into two evaluation forms to be shared by three FEMA offices to evaluate training programs.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be submitted on or before May 19, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Requests for additional information or copies of the information collection should be made to Director, Information Management Division, 500 C Street SW, Washington, DC 20472, email address 
                        <E T="03">FEMA-Information-Collections-Management@fema.dhs.gov</E>
                         or Samuel Phillips, Supervisory Emergency Management Specialist, NTED, (202) 786-9573, and 
                        <E T="03">Samuel.Phillips@fema.dhs.gov.</E>
                         Denis Campeau, Director, Training and Education, Center for Domestic Preparedness (CDP), (256) 310-0874, and 
                        <E T="03">Denis.Campeau@fema.dhs.gov.</E>
                         Dalia Abdelmeguid, Supervisory Instructional Systems Specialist, National Disaster and Emergency Management University (NDEMU), (202) 212-8524, and 
                        <E T="03">Dalia.Abdelmeguid@fema.dhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The National Training and Education Division (NTED), the Center for Domestic Preparedness (CDP) and the 
                    <PRTPAGE P="16147"/>
                    National Disaster and Emergency Management University (NDEMU) are geographically separated components of FEMA's National Preparedness Directorate. As such, all three organizations are part of the National Preparedness Directorate Training Enterprise with unique training missions for specific target audiences and are responsible for supporting and enabling national preparedness Core Capability, Community Lifelines, and Recovery Sector Preparedness performance outcomes described in Presidential Policy Directive (PPD) 8 National Preparedness, the National Preparedness Goal, the National Preparedness System, and 2022-2026 FEMA Strategic Plan objectives 1.3, 2.1, 2.2, and 3.1.
                </P>
                <P>
                    Like other Federal training organizations, the NTED, CDP and NDEMU utilize the Kirkpatrick Training Evaluation Model Level 3 survey results as one of several training evaluation tools to inform component program managers and leadership with metrics that monitor and report organizational performance and compliance with the Government Performance, Results and Modernization Act of 2010 (the “GPRA Modernization Act of 2010”). 31 U.S.C. 1115(b)(6) requires a balanced set of performance indicators to be used in measuring or assessing progress toward each performance goal, including, as appropriate, 
                    <E T="03">customer service, efficiency, output, and outcome indicators.</E>
                     Because the survey collects qualitative feedback from participants about how the training impacted their job performance, occupation, or organization, the results—along with other data—are used to assess the effectiveness of NTED, CDP and NDEMU training programs. NTED and CDP are members of the National Domestic Preparedness Consortium (NDPC). Per 6 U.S.C. 1102(c), the NDPC shall identify, develop, 
                    <E T="03">test,</E>
                     and deliver training to State, local, and Tribal emergency response providers, provide onsite and mobile training at the performance and management and planning levels, and facilitate the delivery of training by the training partners of the Department. FEMA interprets this authority to “test training” as the ability to assess its effectiveness, which this survey directly facilitates.
                </P>
                <P>Per 6 U.S.C. 748(a)(1), the FEMA Administrator in coordination with heads of appropriate Federal agencies, the National Council on Disability, and the National Advisory Council, carries out a national training program to implement the national preparedness goal, National Incident Management System, National Response Plan, and other related plans and strategies. In addition, 6 U.S.C. 748(a)(2) directs the FEMA Administrator, in developing and implementing the national training program, to work with government training facilities, academic institutions, private organizations, and other entities that provide specialized, state-of-the-art training for emergency managers or emergency response providers; and utilize, as appropriate, training courses provided by community colleges, State and local public safety academies, State and private universities, and other facilities.</P>
                <P>The Level 3 data collected from course graduates 3 to 6 months following training provides NTED, CDP and NDEMU with information and data on how training knowledge, skill and attitudes gained from training transfer to the student's job and organization and if the training was applied to the job, an exercise, or during an operational mission. Note: The number of NTED Continuing Training Grants training providers may fluctuate, increase, or decrease based on fiscal year grant funding levels approved by Congress. This reinstatement, with change, consolidates all evaluation forms for all offices into two shared instruments.</P>
                <P>
                    This proposed information collection previously published in the 
                    <E T="04">Federal Register</E>
                     on January 17, 2025, at 90 FR 5924 with a 60-day public comment period. No comments were received. The purpose of this notice is to notify the public that FEMA will submit the information collection abstracted below to the Office of Management and Budget for review and clearance.
                </P>
                <HD SOURCE="HD1">Collection of Information</HD>
                <P>
                    <E T="03">Title:</E>
                     Consolidated FEMA-National Training and Education Division (NTED) Level 3 Training Evaluation Forms.
                </P>
                <P>
                    <E T="03">Type of Information Collection:</E>
                     Reinstatement, with change, of a previously approved information collection.
                </P>
                <P>
                    <E T="03">OMB Number:</E>
                     1660-0132.
                </P>
                <P>
                    <E T="03">FEMA Forms:</E>
                     CDP, NDEMU, and NTED Level 3 Student Evaluation Form, FEMA Form FF-008-FY-25-100; CDP, NDEMU, and NTED Level 3 Supervisor Evaluation Form, FEMA Form FF-008-FY-25-101.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     NTED, CDP, and NDEMU all utilize the Kirkpatrick Four Level Training Evaluation Model to assess training effectiveness. Donald Kirkpatrick developed the four-level model of training evaluation: Level 1 evaluation captures the students' perception or reaction to training. Level 2 completes a pre-post comparison of learning via tests/examinations and performance assessment checklists of the student learning (change in behavior). Level 3 evaluation instruments capture how the training transfers to the students' work environment and their particular job. Lastly, Level 4 captures information about the return on key stakeholder expectations of the course or training program. The data collected by these training evaluation forms is shared with representatives from each course/program's respective target audience during 3-year course/program reviews. All three organizations analyze the data to determine what revisions are needed in curriculum, delivery, and to elicit inputs to improve training while providing documentation as to how training was applied, and how it impacts the individual and organization.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     State, Local, and Tribal Government; Private Sector.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     20,224.
                </P>
                <P>
                    <E T="03">Estimated Number of Responses:</E>
                     20,224.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     5,057.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Respondent Cost:</E>
                     $303,922.
                </P>
                <P>
                    <E T="03">Estimated Respondents' Operation and Maintenance Costs:</E>
                     $0.
                </P>
                <P>
                    <E T="03">Estimated Respondents' Capital and Start-Up Costs:</E>
                     $0.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Cost to the Federal Government:</E>
                     $32,314.
                </P>
                <HD SOURCE="HD1">Comments</HD>
                <P>
                    Comments may be submitted as indicated in the 
                    <E T="02">ADDRESSES</E>
                     caption above. Comments are solicited to (a) evaluate whether the proposed data collection is necessary for the proper performance of the Agency, including whether the information shall have practical utility; (b) evaluate the accuracy of the Agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (c) enhance the quality, utility, and clarity of the information to be collected; and (d) minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, 
                    <PRTPAGE P="16148"/>
                    <E T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </P>
                <SIG>
                    <NAME>Maile Rasco-Arthur,</NAME>
                    <TITLE>Acting Records Management Branch Chief, Office of the Chief Administrative Officer, Mission Support, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06596 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9111-72-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID: FEMA-2024-0036; OMB No. 1660-0112]</DEPDOC>
                <SUBJECT>Agency Information Collection Activities: Submission for OMB Review, Comment Request; FEMA Preparedness Grants: Transit Security Grant Program (TSGP) and Intercity Bus Security Grant Program (IBSGP)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>30-Day notice of reinstatement and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Federal Emergency Management Agency (FEMA) will submit the information collection abstracted below to the Office of Management and Budget for review and clearance in accordance with the requirements of the Paperwork Reduction Act of 1995. FEMA invites the general public to take this opportunity to comment on a reinstatement, with change, of a previously approved information collection. In accordance with the requirements of the Paperwork Reduction Act of 1995, this notice seeks comments concerning the Transit Security Grant Program (TSGP) and the Intercity Bus Security Grant Program (IBSGP), which are FEMA grant programs that focus on transportation infrastructure protection activities.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be submitted on or before May 16, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Written comments and recommendations for the proposed information collection should be sent within 30 days of publication of this notice to 
                        <E T="03">www.reginfo.gov/public/do/PRAMain.</E>
                         Find this particular information collection by selecting “Currently under 30-day Review—Open for Public Comments” or by using the search function.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Requests for additional information or copies of the information collection should be made to Director, Information Management Division, 500 C Street SW, Washington, DC 20472, email address 
                        <E T="03">FEMA-Information-Collections-Management@fema.dhs.gov</E>
                         or Kevin Groves, Supervisory Program Analyst, FEMA, 202-330-3836, and 
                        <E T="03">kevin.groves@fema.dhs.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The Transit Security Grant Program (TSGP) is a Federal Emergency Management Agency (FEMA) grant program that focuses on transportation infrastructure protection activities. The collection of information for TSGP is mandated by Section 1406, Title XIV of the 
                    <E T="03">Implementing Recommendations of the 9/11 Commission Act of 2007</E>
                     (Pub. L. 110-53) (codified at 6 U.S.C. 1135), which directs the Secretary to establish a program for making grants to eligible public transportation agencies for security improvements. Additionally, information is collected in accordance with Section 1406(c) of the 
                    <E T="03">Implementing Recommendations of the 9/11 Commission Act of 2007</E>
                     (6 U.S.C. 1135(c)) which authorizes the Secretary to determine the requirements for grant recipients, including application requirements. The Intercity Bus Security Grant Program (IBSGP) is a FEMA grant program that focuses on transportation infrastructure protection activities. The collection of information for IBSGP is mandated by Section 1532 of the 
                    <E T="03">Implementing Recommendations of the 9/11 Commission Act of 2007</E>
                     (Pub. L. 110-53) (codified at 6 U.S.C. 1182), which directs the Secretary to establish a program for making grants to eligible private operators providing transportation by an over-the-road bus for security improvements. Additionally, information is collected in accordance with 
                    <E T="03">Section 1532(d) of the Implementing Recommendations of the 9/11 Commission Act of 2007</E>
                     (6 U.S.C. 1182(d)) which authorizes the Secretary to determine the requirements for grant recipients, including application requirements.
                </P>
                <P>With this reinstatement, with change, FEMA adds the instruments for the IBSGP to this collection for easier management and transparency.</P>
                <P>
                    This proposed information collection previously published in the 
                    <E T="04">Federal Register</E>
                     at 89 FR 102932, Dec. 18, 2024 with a 60-day public comment period. FEMA received zero public comments. The purpose of this notice is to notify the public that FEMA will submit the information collection abstracted below to the Office of Management and Budget for review and clearance.
                </P>
                <HD SOURCE="HD1">Collection of Information</HD>
                <P>
                    <E T="03">Title:</E>
                     FEMA Preparedness Grants: Transit Security Grant Program (TSGP) and Intercity Bus Security Grant Program (IBSGP).
                </P>
                <P>
                    <E T="03">Type of Information Collection:</E>
                     Reinstatement, with change, of a previously approved information collection.
                </P>
                <P>
                    <E T="03">OMB Number:</E>
                     1660-0112.
                </P>
                <P>
                    <E T="03">FEMA Forms:</E>
                     TSGP Five Year Security Capital and Operational Sustainment Plan, FEMA Form FF-207-FY-21-101; TSGP Investment Justification Background Document, FEMA Form FF-207-FY-21-102; TSGP Investment Justification, FEMA Form FF-207-FY-21-103; TSGP Public Transit Risk Assessment Methodology (PT-RAM) Gap Analysis, FEMA Form FF-207-FY-21-104; TSGP PT-RAM Implementation Plan, FEMA Form FF-207-FY-21-105; TSGP PT-RAM, FEMA Form FF-207-FY-21-106; IBSGP Investment Justification Form, FEMA Form FF-207-FY-23-102; IBSGP Detailed Budget Worksheet, FEMA Form FF-207-FY-23-103; and IBSGP Vulnerability Assessment and Security Plan, FEMA Form FF-207-FY-23-104.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     The TSGP and IBSGP are important components of the Department's effort to enhance the security of the Nation's critical infrastructure. The programs provide funds to owners and operators of transit systems (TSGP) and private bus operators (IBSGP) to protect critical surface transportation infrastructure and the traveling public from acts of terrorism, major disasters, and other emergencies.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Business or other for-profit entities, State and local governments.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     906.
                </P>
                <P>
                    <E T="03">Estimated Number of Responses:</E>
                     906.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     15,940.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Respondent Cost:</E>
                     $1,537,792.
                </P>
                <P>
                    <E T="03">Estimated Respondents' Operation and Maintenance Costs:</E>
                     $0.
                </P>
                <P>
                    <E T="03">Estimated Respondents' Capital and Start-Up Costs:</E>
                     $0.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Cost to the Federal Government:</E>
                     $1,188,925.
                </P>
                <HD SOURCE="HD1">Comments</HD>
                <P>
                    Comments may be submitted as indicated in the 
                    <E T="02">ADDRESSES</E>
                     caption above. Comments are solicited to (a) evaluate whether the proposed data collection is necessary for the proper performance of the Agency, including whether the information shall have practical utility; (b) evaluate the 
                    <PRTPAGE P="16149"/>
                    accuracy of the Agency's estimate of the burden of the proposed collection of information, including the validity of the methodology and assumptions used; (c) enhance the quality, utility, and clarity of the information to be collected; and (d) minimize the burden of the collection of information on those who are to respond, including through the use of appropriate automated, electronic, mechanical, or other technological collection techniques or other forms of information technology, 
                    <E T="03">e.g.,</E>
                     permitting electronic submission of responses.
                </P>
                <SIG>
                    <NAME>Maile Rasco-Arthur,</NAME>
                    <TITLE>Acting Records Management Branch Chief, Office of the Chief Administrative Officer, Mission Support, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06595 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9111-78-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF HOMELAND SECURITY</AGENCY>
                <SUBAGY>Federal Emergency Management Agency</SUBAGY>
                <DEPDOC>[Docket ID FEMA-2025-0002]</DEPDOC>
                <SUBJECT>Changes in Flood Hazard Determinations</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Emergency Management Agency, Department of Homeland Security.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>New or modified Base (1-percent annual chance) Flood Elevations (BFEs), base flood depths, Special Flood Hazard Area (SFHA) boundaries or zone designations, and/or regulatory floodways (hereinafter referred to as flood hazard determinations) as shown on the indicated Letter of Map Revision (LOMR) for each of the communities listed in the table below are finalized. Each LOMR revises the Flood Insurance Rate Maps (FIRMs), and in some cases the Flood Insurance Study (FIS) reports, currently in effect for the listed communities.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Each LOMR was finalized as in the table below.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Each LOMR is available for inspection at both the respective Community Map Repository address listed in the table below and online through the FEMA Map Service Center at 
                        <E T="03">https://msc.fema.gov.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rick Sacbibit, Chief, Engineering Services Branch, Risk Analysis, Planning &amp; Information Directorate, FEMA, 400 C Street SW, Washington, DC 20472, (202) 646-7659, or (email) 
                        <E T="03">patrick.sacbibit@fema.dhs.gov;</E>
                         or visit the FEMA Mapping and Insurance eXchange (FMIX) online at 
                        <E T="03">https://www.floodmaps.fema.gov/fhm/fmx_main.html.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Federal Emergency Management Agency (FEMA) makes the final flood hazard determinations as shown in the LOMRs for each community listed in the table below. Notice of these modified flood hazard determinations has been published in newspapers of local circulation and 90 days have elapsed since that publication. The Deputy Associate Administrator for Insurance and Mitigation has resolved any appeals resulting from this notification.</P>
                <P>
                    The modified flood hazard determinations are made pursuant to section 206 of the Flood Disaster Protection Act of 1973, 42 U.S.C. 4105, and are in accordance with the National Flood Insurance Act of 1968, 42 U.S.C. 4001 
                    <E T="03">et seq.,</E>
                     and with 44 CFR part 65. The current effective community number is shown and must be used for all new policies and renewals.
                </P>
                <P>The new or modified flood hazard information is the basis for the floodplain management measures that the community is required either to adopt or to show evidence of being already in effect in order to remain qualified for participation in the National Flood Insurance Program (NFIP).</P>
                <P>This new or modified flood hazard information, together with the floodplain management criteria required by 44 CFR 60.3, are the minimum that are required. They should not be construed to mean that the community must change any existing ordinances that are more stringent in their floodplain management requirements. The community may at any time enact stricter requirements of its own or pursuant to policies established by other Federal, State, or regional entities.</P>
                <P>This new or modified flood hazard determinations are used to meet the floodplain management requirements of the NFIP. The changes in flood hazard determinations are in accordance with 44 CFR 65.4.</P>
                <P>
                    Interested lessees and owners of real property are encouraged to review the final flood hazard information available at the address cited below for each community or online through the FEMA Map Service Center at 
                    <E T="03">https://msc.fema.gov.</E>
                </P>
                <FP>(Catalog of Federal Domestic Assistance No. 97.022, “Flood Insurance.”)</FP>
                <SIG>
                    <NAME>Kristin E. Fontenot,</NAME>
                    <TITLE>Assistant Administrator, Risk Analysis, Planning &amp; Information Directorate, Federal Emergency Management Agency, Department of Homeland Security.</TITLE>
                </SIG>
                <BILCOD>BILLING CODE 9110-12-P</BILCOD>
                <GPH SPAN="3" DEEP="545">
                    <PRTPAGE P="16150"/>
                    <GID>EN17AP25.002</GID>
                </GPH>
                <GPH SPAN="3" DEEP="545">
                    <PRTPAGE P="16151"/>
                    <GID>EN17AP25.003</GID>
                </GPH>
                <GPH SPAN="3" DEEP="545">
                    <PRTPAGE P="16152"/>
                    <GID>EN17AP25.004</GID>
                </GPH>
                <GPH SPAN="3" DEEP="545">
                    <PRTPAGE P="16153"/>
                    <GID>EN17AP25.005</GID>
                </GPH>
                <GPH SPAN="3" DEEP="545">
                    <PRTPAGE P="16154"/>
                    <GID>EN17AP25.006</GID>
                </GPH>
                <GPH SPAN="3" DEEP="545">
                    <PRTPAGE P="16155"/>
                    <GID>EN17AP25.007</GID>
                </GPH>
                <GPH SPAN="3" DEEP="545">
                    <PRTPAGE P="16156"/>
                    <GID>EN17AP25.008</GID>
                </GPH>
                <GPH SPAN="3" DEEP="545">
                    <PRTPAGE P="16157"/>
                    <GID>EN17AP25.009</GID>
                </GPH>
                <GPH SPAN="3" DEEP="539">
                    <PRTPAGE P="16158"/>
                    <GID>EN17AP25.010</GID>
                </GPH>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06597 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 9110-12-C</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT</AGENCY>
                <DEPDOC>[Docket No. FR-6508-N-01]</DEPDOC>
                <SUBJECT>Waivers and Alternative Requirements for a Community Development Block Grant Disaster Recovery (CDBG-DR) Grantee</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of the Assistant Secretary for Community Planning and Development, HUD.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This notice governs Community Development Block Grant—Disaster Recovery (CDBG-DR) funds allocated to the Commonwealth of Puerto Rico pursuant to the Supplemental Appropriations for Disaster Relief Requirements Act, 2017, and the Further Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2018, 
                        <PRTPAGE P="16159"/>
                        for major disasters occurring in 2017. In response to a request by the Commonwealth of Puerto Rico, this notice provides waivers and alternative requirements of certain sections of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, as amended (URA), and waivers of certain sections of the Housing and Community Development Act of 1974 (HCDA) to acquire disaster-damaged properties and assist in the recovery of the Commonwealth.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Applicability Date: April 22, 2025.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Tennille Parker, Director, Office of Disaster Recovery, U.S. Department of Housing and Urban Development, 451 7th Street SW, Room 7282, Washington, DC 20410, telephone number 202-708-3587 (this is not a toll-free number). HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as from individuals with speech or communication disabilities. To learn more about how to make an accessible telephone call, please visit: 
                        <E T="03">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.</E>
                         Email inquiries may be sent to 
                        <E T="03">disaster_recovery@hud.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <HD SOURCE="HD1">Table of Contents </HD>
                <EXTRACT>
                    <FP SOURCE="FP-2">I. Authority to Grant Waivers</FP>
                    <FP SOURCE="FP-2">II. Public Law 115-56 and 115-123 Waiver and Alternative Requirements</FP>
                    <FP SOURCE="FP-2">III. Finding of No Significant Impact (FONSI)</FP>
                </EXTRACT>
                <HD SOURCE="HD1">I. Authority To Grant Waivers</HD>
                <P>The Supplemental Appropriations for Disaster Relief Requirements Act, 2017 (Division B, Pub. L. 115-56), approved September 8, 2017, and the Further Additional Supplemental Appropriations for Disaster Relief Requirements Act, 2018 (Division B, Subdivision 1, Pub. L. 115-123), approved February 9, 2018, authorize the Secretary to waive, or specify alternative requirements for, any provision of any statute or regulation that the Secretary administers in connection with the obligation by the Secretary, or use by the recipient, of grant funds, except for requirements related to fair housing, nondiscrimination, labor standards, and the environment. HUD may also exercise its regulatory waiver authority under 24 CFR 5.110, 91.600, and 570.5.</P>
                <P>The waiver authorized in this notice is based upon a determination by the Secretary that good cause exists and that the waiver is not inconsistent with the overall purposes of title I of the HCDA. The good cause for the waiver is summarized below.</P>
                <HD SOURCE="HD1">II. Public Law 115-56 and 115-123 Waiver and Alternative Requirements</HD>
                <P>
                    The Department has awarded CDBG-DR funds to the Commonwealth of Puerto Rico (the Commonwealth) under Public Laws 115-56 and 115-123 to assist in the long-term recovery from the 2017 disasters, Hurricanes Irma and Maria. This notice waives requirements and specifies alternative requirements for CDBG-DR funds awarded to the Commonwealth under these two Public Laws. The CDGB-DR funds awarded to the Commonwealth under these two Public Laws remain subject to the requirements in prior applicable 
                    <E T="04">Federal Register</E>
                     notices, including environmental requirements found in HUD's 
                    <E T="04">Federal Register</E>
                     notices published on February 9, 2018 (83 FR 5844) and August 14, 2018 (83 FR 40314).
                </P>
                <HD SOURCE="HD2">II.A.1. Background</HD>
                <P>The Puerto Rico Department of Housing (PRDOH) is using CDBG-DR funds provided under Public Laws 115-56 and 115-123 to implement its Home Repair, Reconstruction, or Relocation (R3) Program. The R3 Program is intended to provide relief for those individuals and families whose households were impacted by the qualifying disasters and have unmet housing needs.</P>
                <P>Under the R3 Program, PRDOH provides relocation assistance to eligible low- to moderate-income (LMI) applicants who are owner-occupants of homes that are substantially damaged by the qualifying disaster (the “disaster-damaged property”). If the disaster-damaged property is in a high-risk area and it is determined that it is not reasonable to elevate the property, the owner-occupant has the option to voluntarily relocate to a lower-risk area. As part of this process, eligible owner-occupants receive relocation assistance to purchase a replacement property outside the high-risk area and an acquisition offer from PRDOH to voluntarily transfer the disaster-damaged property to PRDOH.</P>
                <P>
                    In order to acquire a disaster-damaged property under the R3 Program, the disaster-damaged property must be registered in the Property Registry under the owner-occupant's name. However, there are cases where the ownership of a property cannot be transferred to PRDOH because the property title is not duly registered in the Property Registry or the owner-occupant has no legal means of documenting their proprietary interest (
                    <E T="03">i.e.,</E>
                     full or partial ownership interest). In the Commonwealth, there is no legal requirement to register a property, so many properties are not registered, and some have been subdivided without complying with applicable laws and requirements.
                </P>
                <P>
                    When a person does not have a registered and clear title (
                    <E T="03">i.e.,</E>
                     a title free of claims or disputes about ownership) to a property, an acquiring agency cannot fulfill the voluntary acquisition requirements under the URA and its implementing regulations at 49 CFR part 24. The URA regulations at 49 CFR 24.101 require that before an acquiring agency engages in a voluntary acquisition of properties with Federal financial assistance, all owners of the property to be acquired must be provided with a written offer reflecting what the agency believes to be the market value of the property. If a R3 applicant does not have a clear title to their property because of unknown heirs or the absence of indispensable parties, then PRDOH cannot fulfill the applicable voluntary acquisition requirements for an acquiring agency under the URA regulations.
                </P>
                <P>To address situations where R3 applicants do not have clear title, PRDOH created the Title Clearance (TC) Program. The goal of the TC Program is to help LMI households that own disaster-damaged properties to register and obtain clear and marketable title to their properties. However, if clear title cannot be obtained in a timely manner because of unknown heirs or the absence of indispensable parties, PRDOH's only option is to acquire the disaster-damaged property through the use of an eminent domain process, as described in this waiver (the “R3 Eminent Domain process”).</P>
                <HD SOURCE="HD2">II.A.2. PRDOH's Proposed R3 Eminent Domain Process</HD>
                <P>
                    The URA regulations at 49 CFR 24.102 require that PRDOH provide owners with just compensation when acquiring property through eminent domain for a program or project using Federal financial assistance. Based on the information provided by PRDOH, for purposes of the R3 Eminent Domain process, just compensation will be at least equal to the amount of PRDOH's determination of the fair market value of the disaster-damaged property (the PRDOH-determined FMV) that is attributable to an owner's proprietary interest in the property to be acquired, or the court's determination of an owner's entitlement to compensation through the eminent domain action if the court-determined compensation attributable to the owner's proprietary interest is higher. PRDOH will notify all 
                    <PRTPAGE P="16160"/>
                    parties with a proprietary interest of its intent to acquire the property through the R3 Eminent Domain process to the greatest extent possible, as set forth in the CDBG-DR action plan.
                </P>
                <P>Prior to filing an eminent domain action against the property, PRDOH will compensate program participants for their proprietary interest, which includes the provision of relocation assistance for the acquisition of a replacement property.</P>
                <P>Upon acquisition of a replacement property by the program participant, the program participant will assign their rights to the compensation they are entitled to through the eminent domain action to PRDOH, in an amount equal to the PRDOH-determined FMV attributable to the program participant's proprietary interest in the disaster-damaged property. PRDOH will not proceed with filing an eminent domain action against a disaster-damaged property until the program participant has obtained a replacement property with PRDOH's assistance and PRDOH has provided any required additional compensation based on the PRDOH-determined FMV attributable to the program participant's proprietary interests in the property. PRDOH will also not proceed with filing an eminent domain action against a property until all Known Owners (as defined below) of the property to be acquired through the R3 Eminent Domain process have received compensation based on the PRDOH-determined FMV attributable to the Known Owner's proprietary interests in the property.</P>
                <P>Once PRDOH files the eminent domain action, PRDOH deposits the amount equal to the PRDOH-determined FMV of the property with the court, in accordance with Commonwealth laws. The court may determine the PRDOH-determined FMV is insufficient to satisfy the just compensation owed and require PRDOH to deposit an additional amount with the court. The court will distribute the deposited funds as just compensation based on the court's ownership determination. If the court-determined compensation for a program participant or Known Owner exceeds the PRDOH-determined FMV attributable to a program participant's or Known Owner's proprietary interest, PRDOH shall provide for any amounts in excess of the PRDOH-determined FMV attributable to that program participant's or Known Owner's proprietary interest to the program participant or Known Owner.</P>
                <HD SOURCE="HD2">II.A.3. URA Waiver and Alternative Requirement for the R3 Eminent Domain Process</HD>
                <P>PRDOH has requested a waiver of certain sections of the URA to acquire disaster-damaged properties to implement the R3 Eminent Domain process and assist in the recovery of its municipalities. In the Department's review of PRDOH's request, the Department determined additional waivers, in addition to those requested by PRDOH, are required under the URA and sections 104(d) and 105(a)(1) of the Housing and Community Development Act of 1974 (HCDA) (42 U.S.C. 5304(d); 42 U.S.C. 5305(a)(1)). These waivers are described in sections II.A.4. and II.A.5.</P>
                <P>The Secretary has determined there is sufficient good cause to grant the following waivers for CDBG-DR funds provided under Public Laws 115-56 and 115-123 because these waivers will allow PRDOH to acquire disaster-damaged properties from LMI owner-occupants, despite the property's various title issues. The following waivers will also assist LMI owner-occupants to purchase replacement housing in lower risk areas. In doing so, PRDOH will provide decent, safe, and sanitary housing in the Most Impacted and Distressed Areas to LMI owners affected by the qualifying disasters. Without the waivers, PRDOH would not be able to meet the acquisition requirements in 49 CFR part 24, subpart B and the requirements in 24 CFR part 570 for these disaster-damaged properties because of unknown heirs or the absence of indispensable parties with proprietary interests in the properties. PRDOH would also be required to consider a program participant in the R3 Eminent Domain process to be a displaced person under the URA and 24 CFR part 570, thereby causing a potential duplication of benefits in the issuance of relocation assistance. The Secretary therefore grants the following waiver to permit PRDOH to carry out the R3 Eminent Domain process for properties acquired by PRDOH, subject to the alternative requirements described below.</P>
                <P>HUD waives 49 CFR 24.101(b), and 24 CFR 570.606(e) to the extent that the R3 Eminent Domain process is considered an involuntary acquisition subject to the requirements at 49 CFR part 24, subpart B. HUD also waives the definition of “displaced person” under 49 CFR 24.2(a), 24 CFR 42.305, and 24 CFR 570.606(b)(2) to the extent that program participants would be considered displaced persons under these regulations. HUD imposes the following alternative requirements on the use of this waiver:</P>
                <P>1. The R3 Eminent Domain process will only be available to R3 applicants that are owner-occupants of disaster-damaged properties under the following conditions:</P>
                <P>a. The R3 applicant agrees to voluntarily relocate from their disaster-damaged property;</P>
                <P>b. The R3 applicant has a proprietary interest in their disaster-damaged property;</P>
                <P>c. The R3 applicant does not have clear title to their disaster-damaged property; and,</P>
                <P>d. All of the following criteria have been met:</P>
                <P>i. The R3 applicant has evidence of their proprietary interest in the disaster-damaged property;</P>
                <P>ii. The R3 applicant and/or PRDOH has used their best efforts to clear title, as defined by PRDOH in its CDBG-DR Action Plan(s), which may include attempting to obtain clear title through the TC program; and</P>
                <P>
                    iii. The R3 applicant and/or PRDOH has used best efforts, as defined by PRDOH in its CDBG-DR Action Plan(s), to contact all indispensable parties and heirs (
                    <E T="03">i.e.,</E>
                     persons having or claiming to have a proprietary interest in the disaster-damaged property) to provide the required compensation attributable to their proprietary interests.
                </P>
                <P>2. PRDOH will notify all parties with a proprietary interest in a disaster-damaged property of its intent to acquire the property through the R3 Eminent Domain process to the greatest extent possible, as set forth in the CDBG-DR action plan.</P>
                <P>3. Prior to acquiring a property through the R3 Eminent Domain process, PRDOH must obtain written consent from all program participants and every Known Owner with a proprietary interest in the program participant's disaster-damaged property. “Known Owner” is a person having a verifiable proprietary interest in the disaster-damaged property, other than program participant(s), that PRDOH is able to contact. Written consent must be obtained through one or more written agreements that describe the R3 Eminent Domain process, declare that there is no other means of obtaining clear title to the disaster-damaged property and the basis for the determination, and state that the program participant or Known Owner is voluntarily participating in the R3 Eminent Domain process.</P>
                <P>
                    4. The PRDOH-determined FMV for a disaster-damaged property must be based on a third-party appraisal completed no more than 12 months 
                    <PRTPAGE P="16161"/>
                    prior to the date of execution of the written agreement or any amendment of the written agreement that revises the PRDOH-determined FMV between the program participant or Known Owner and PRDOH.
                </P>
                <P>5. PRDOH must provide just compensation to the property's program participant(s) and Known Owners(s). Just compensation must be at least equal to the amount of the PRDOH-determined FMV that is attributable to an owner's proprietary interest in a property to be acquired or the court's determination of an owner's entitlement to compensation through the eminent domain action if the court-determined compensation is higher than the PRDOH-determined FMV attributable to an owner's proprietary interest.</P>
                <P>6. The fully executed written agreement with each Known Owner must contain the following specific terms and conditions:</P>
                <P>a. PRDOH will provide the Known Owner with just compensation, as defined in condition 5. above;</P>
                <P>b. Upon receiving compensation in the amount of the PRDOH-determined FMV attributable to the Known Owner's proprietary interest in the disaster-damaged property, the Known Owner will assign their rights to the compensation they are entitled to through the eminent domain action to PRDOH, in an amount equal to the PRDOH-determined FMV attributable to the Known Owner's proprietary interest in the disaster-damaged property; and,</P>
                <P>c. If the court's determination of a Known Owner's entitlement to compensation through the eminent domain action is higher than the PRDOH-determined FMV attributable to the Known Owner's proprietary interest in the disaster-damaged property, PRDOH shall provide the amount of just compensation greater than the PRDOH-determined FMV to the Known Owner, as determined by the court in the eminent domain action.</P>
                <P>7. The fully executed written agreement with each program participant must contain the following specific terms and conditions:</P>
                <P>a. PRDOH will provide the program participant with just compensation, as defined in condition 5. above;</P>
                <P>b. PRDOH will assist the program participant by providing relocation assistance to acquire a replacement property;</P>
                <P>c. PRDOH is only permitted to place a forgivable lien on the replacement property equal to or less than the difference between the cost of the replacement property and the PRDOH-determined estimated FMV attributable to the program participant's proprietary interest in the property, in accordance with the lien terms established in the R3 Program and disclosed in the written agreement;</P>
                <P>d. If the final purchase price of the replacement property is less than the PRDOH-determined FMV attributable to the program participant's proprietary interest in the property to be acquired through the R3 Eminent Domain process, then PRDOH must provide additional compensation that is no less than the difference between the final purchase price of the replacement property and the PRDOH-determined FMV attributable to the program participant's proprietary interest;</P>
                <P>e. Upon acquiring a replacement property and receiving any additional compensation (if applicable) up to the amount of the PRDOH-determined FMV attributable to the program participant's proprietary interest in the property, the program participant will assign their rights to the compensation determined by the court through the R3 Eminent Domain process to PRDOH. The amount of compensation assigned to PRDOH must be equal to the PRDOH-determined FMV attributable to the program participant's proprietary interest in the disaster-damaged property.</P>
                <P>f. If the court's determination of the program participant's entitlement to compensation through the eminent domain action is higher than the PRDOH-determined FMV attributable to the program participant's proprietary interest in the disaster-damaged property, PRDOH shall provide the amount of court-determined compensation that is greater than the PRDOH-determined FMV attributable to the proprietary interest to the program participant;</P>
                <P>g. PRDOH may only require a program participant to vacate the disaster-damaged property to be acquired through the R3 Eminent Domain process after a reasonable period of time following the program participant's completed acquisition of the replacement property;</P>
                <P>h. If the program participant is unable to acquire a replacement property and vacate, PRDOH shall not proceed with its acquisition of the disaster-damaged property through the R3 Eminent Domain process and is prohibited from filing the eminent domain action.</P>
                <P>i. PRDOH must amend the written agreement with the program participant for any changes to the terms and conditions of the payment of just compensation and the terms and conditions of the forgivable lien placed on the replacement property.</P>
                <P>8. Throughout the R3 Eminent Domain process, PRDOH shall provide advisory services to program participants and Known Owners including, but not limited to:</P>
                <P>a. Explaining the R3 program, the R3 Eminent Domain process, and the rights and requirements associated with each; and,</P>
                <P>b. Advising on the terms and conditions of any written agreements, assignments of their just compensation for real property, and for program participants, any liens that will be recorded against a replacement property by PRDOH.</P>
                <P>9. If PRDOH and a program participant or Known Owner have already entered into a written agreement for just compensation or relocation and the property will be acquired by PRDOH through the R3 Eminent Domain process, then PRDOH and the program participant or Known Owner must amend the written agreement or execute a new written agreement to include all applicable terms and conditions of this waiver and alternative requirement.</P>
                <P>11. Before PRDOH proceeds with the R3 Eminent Domain process for any disaster-damaged property, PRDOH must update its policies, procedures, and Residential Antidisplacement and Relocation Assistance Plan (RARAP).</P>
                <P>12. Before PRDOH proceeds with the R3 Eminent Domain process for any disaster-damaged property, PRDOH must certify that it shall comply with the URA, section 104(d), and 24 CFR 570.606, as modified by all applicable waivers and alternative requirements.</P>
                <P>13. Records for each property acquired by PRDOH through the R3 Eminent Domain process must include:</P>
                <P>a. Documentation of the reasonable efforts conducted prior to starting the R3 Eminent Domain process (as described in the grantee's action plan) for any disaster-damaged property;</P>
                <P>b. The written offer(s) for the amount of compensation attributable to a program participant's proprietary interest in the disaster-damaged property using the PRDOH-determined FMV and the written acceptance of the offer by a program participant;</P>
                <P>c. The written offer(s) for the amount of compensation attributable to a Known Owner's proprietary interest in the disaster-damaged property using the PRDOH-determined FMV and the written acceptances of the offer by the Known Owner;</P>
                <P>d. The written agreements and all amendments with program participants and Known Owners;</P>
                <P>
                    e. Documentation of the certified, third-party appraisal and PRDOH FMV determination;
                    <PRTPAGE P="16162"/>
                </P>
                <P>f. Any required certification;</P>
                <P>g. All notices, filings, and court records related to the R3 Eminent Domain process;</P>
                <P>h. Evidence of the provision of advisory services to program participants and Known Owners;</P>
                <P>i. Records relating to the purchase of the replacement property, including but not limited to the final sales price including all fees and closing costs and any liens placed on the property by PRDOH;</P>
                <P>j. Evidence of all additional compensation provided to a program participant when the final purchase price of a replacement property including all fees and closing costs is less than the PRDOH-determined FMV;</P>
                <P>k. If the court's determination of an owner's entitlement to compensation through the eminent domain action is higher than the PRDOH-determined FMV that is attributable to an owner, evidence that PRDOH provided that owner with additional compensation so that the owner received overall compensation in the amount of the court-determined just compensation for that owner's court-determined proprietary interest;</P>
                <P>l. Evidence that the property obtained through the R3 Eminent Domain process was disaster-damaged and qualified under the R3 Program; and</P>
                <P>m. Evidence that PRDOH provided any residential tenants of the disaster-damaged property acquired through the R3 Eminent Domain process, other than the program participant, with all services, assistance, and benefits due to them under the applicable URA regulations at 49 CFR part 24 and CDBG regulations at 24 CFR 570.606, as amended by waivers and alternative requirements.</P>
                <P>14. All properties obtained through the R3 Eminent Domain process must only be employed for a public use, as follows:</P>
                <P>a. Public use shall not be construed to include economic development that primarily benefits private entities; and</P>
                <P>b. Any use of funds for mass transit, railroad, airport, seaport or highway projects, as well as utility projects which benefit or serve the general public (including energy-related, communication-related, water-related and wastewater-related infrastructure), other structures designated for use by the general public or which have other common-carrier or public-utility functions that serve the general public and are subject to regulation and oversight by the government, and projects for the removal of an immediate threat to public health and safety or brownfields as defined in the Small Business Liability Relief and Brownfields Revitalization Act (Public Law 107-118) shall be considered a public use for purposes of eminent domain.</P>
                <P>15. All URA requirements contained in 49 CFR part 24 or the requirements contained in 24 CFR 570.606 for tenants of disaster-damaged property obtained through the R3 Eminent Domain Process still apply. PRDOH must provide tenants living in property acquired by PRDOH through the R3 Eminent Domain process with all required written notices, advisory services, and replacement housing assistance payments required under 49 CFR part 24 and 24 CFR 570.606.</P>
                <HD SOURCE="HD2">II.A.4. Waiver of Section 104(d) of the HCDA for the R3 Eminent Domain Process</HD>
                <P>Based on the good cause described in section II.A.2., HUD waives the one-for-one replacement requirements at section 104(d)(2)(A)(i) and (ii) and 104(d)(3) of the HCDA and 24 CFR 42.375 in the purchase and demolition of the disaster-damaged properties through the R3 Eminent Domain process. The section104(d) one-for-one replacement housing requirements apply to occupied and vacant occupiable lower-income dwelling units demolished or converted in connection with a CDBG-assisted activity. This waiver exempts property purchased in accordance with the URA waiver and alternative requirement in II.A.2. from being replaced in accordance with the one-for-one replacement housing requirements of 24 CFR 42.375. This waiver is necessary to reduce burdensome administrative requirements by allowing the Commonwealth to document that a disaster-damaged property was acquired pursuant to these waivers and alternative requirement for the R3 Eminent Domain process instead of documenting that the acquisition of the property met another exception to, or waiver of the section 104(d) one-for-one replacement requirements contained in 24 CFR 42.375.</P>
                <HD SOURCE="HD2">II.A.5. Waiver of Section 105(a)(1) of the HCDA for the R3 Eminent Domain Process</HD>
                <P>Based on the good cause described in section II.A.2., HUD waives the definition of acquisition in section 105(a)(1) of the HCDA to allow the use of the R3 Eminent Domain process to be considered an eligible form of acquisition in the purchase of disaster-damaged properties in the R3 Program. Eminent domain is not an eligible form of acquisition under the HCDA. This waiver is necessary to enable property purchased through the R3 Eminent Domain process in accordance with the waiver and alternative requirement contained in section II.A.2. of this notice to be considered eligible CDBG-DR acquisition activities even though the purchases are made through the use of eminent domain actions.</P>
                <HD SOURCE="HD1">III. Finding of No Significant Impact</HD>
                <P>
                    A Finding of No Significant Impact (FONSI) with respect to the environment has been made in accordance with HUD regulations at 24 CFR part 50, which implement section 102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 4332(2)(C)). The FONSI is available online on HUD's CDBG-DR website at 
                    <E T="03">https://www.hud.gov/program_offices/comm_planning/cdbg-dr</E>
                     and for public inspection between 8 a.m. and 5 p.m. weekdays in the Regulations Division, Office of General Counsel, Department of Housing and Urban Development, 451 7th Street SW, Room 10276, Washington, DC 20410-0500. Due to security measures at the HUD Headquarters building, an advance appointment to review the docket file must be scheduled by calling the Regulations Division at 202-708-3055 (this is not a toll-free number). HUD welcomes and is prepared to receive calls from individuals who are deaf or hard of hearing, as well as individuals with speech or communication disabilities. To learn more about how to make an accessible telephone call, please visit 
                    <E T="03">https://www.fcc.gov/consumers/guides/telecommunications-relay-service-trs.</E>
                </P>
                <SIG>
                    <NAME>Scott Turner,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06549 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4210-67-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Bureau of Indian Affairs</SUBAGY>
                <DEPDOC>[256A2100DD/AAKP300000/A0A501010.000000]</DEPDOC>
                <SUBJECT>HEARTH Act Approval of Shawnee Tribe Leasing Ordinance</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Indian Affairs, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        The Assistant Secretary—Indian Affairs approved the Shawnee Tribe Leasing Ordinance under the Helping Expedite and Advance Responsible Tribal Homeownership Act of 2012 (HEARTH Act). With this approval, the Tribe is authorized to 
                        <PRTPAGE P="16163"/>
                        enter into business, wind and solar, public, religious, educational, cultural, and recreational leases without further Secretary of the Interior approval.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The Assistant Secretary—Indian Affairs issued the approval on April 11, 2025.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Ms. Carla Clark, Bureau of Indian Affairs, Division of Real Estate Services, 1001 Indian School Road NW, Albuquerque, NM 87104, 
                        <E T="03">carla.clark@bia.gov,</E>
                         (702) 484-3233.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">I. Summary of the HEARTH Act</HD>
                <P>The HEARTH Act makes a voluntary, alternative land leasing process available to Tribes, by amending the Indian Long-Term Leasing Act of 1955, 25 U.S.C. 415. The HEARTH Act authorizes Tribes to negotiate and enter into business leases of Tribal trust lands with a primary term of 25 years, and up to two renewal terms of 25 years each, without the approval of the Secretary of the Interior (Secretary). The HEARTH Act also authorizes Tribes to enter into leases for residential, recreational, religious or educational purposes for a primary term of up to 75 years without the approval of the Secretary. Participating Tribes develop Tribal Leasing regulations, including an environmental review process, and then must obtain the Secretary's approval of those regulations prior to entering into leases. The HEARTH Act requires the Secretary to approve Tribal regulations if the Tribal regulations are consistent with the Department of the Interior's (Department) leasing regulations at 25 CFR part 162 and provide for an environmental review process that meets requirements set forth in the HEARTH Act. This notice announces that the Secretary, through the Assistant Secretary—Indian Affairs, has approved the Tribal regulations for the Shawnee Tribe.</P>
                <HD SOURCE="HD1">II. Federal Preemption of State and Local Taxes</HD>
                <P>
                    The Department's regulations governing the surface leasing of trust and restricted Indian lands specify that, subject to applicable Federal law, permanent improvements on leased land, leasehold or possessory interests, and activities under the lease are not subject to State and local taxation and may be subject to taxation by the Indian Tribe with jurisdiction. 
                    <E T="03">See</E>
                     25 CFR 162.017. As explained further in the preamble to the final regulations, the Federal Government has a strong interest in promoting economic development, self-determination, and Tribal sovereignty. 77 FR 72440, 72447-48 (December 5, 2012). The principles supporting the Federal preemption of State law in the field of Indian leasing and the taxation of lease-related interests and activities applies with equal force to leases entered into under Tribal leasing regulations approved by the Federal Government pursuant to the HEARTH Act.
                </P>
                <P>
                    Section 5 of the Indian Reorganization Act (IRA), 25 U.S.C. 5108, preempts State and local taxation of permanent improvements on trust land. 
                    <E T="03">Confederated Tribes of the Chehalis Reservation</E>
                     v. 
                    <E T="03">Thurston County,</E>
                     724 F.3d 1153, 1157 (9th Cir. 2013) (citing 
                    <E T="03">Mescalero Apache Tribe</E>
                     v. 
                    <E T="03">Jones,</E>
                     411 U.S. 145 (1973)). Similarly, section 5108 of the IRA preempts State taxation of rent payments by a lessee for leased trust lands, because “tax on the payment of rent is indistinguishable from an impermissible tax on the land.” 
                    <E T="03">See Seminole Tribe of Florida</E>
                     v. 
                    <E T="03">Stranburg,</E>
                     799 F.3d 1324, 1331, n.8 (11th Cir. 2015). In addition, as explained in the preamble to the revised leasing regulations at 25 CFR part 162, Federal courts have applied a balancing test to determine whether State and local taxation of non-Indians on the reservation is preempted. 
                    <E T="03">White Mountain Apache Tribe</E>
                     v. 
                    <E T="03">Bracker,</E>
                     448 U.S. 136, 143 (1980). The 
                    <E T="03">Bracker</E>
                     balancing test, which is conducted against a backdrop of “traditional notions of Indian self- government,” requires a particularized examination of the relevant State, Federal, and Tribal interests. We hereby adopt the 
                    <E T="03">Bracker</E>
                     analysis from the preamble to the surface leasing regulations, 77 FR at 72447-48, as supplemented by the analysis below.
                </P>
                <P>The strong Federal and Tribal interests against State and local taxation of improvements, leaseholds, and activities on land leased under the Department's leasing regulations apply equally to improvements, leaseholds, and activities on land leased pursuant to Tribal leasing regulations approved under the HEARTH Act. Congress's overarching intent was to “allow Tribes to exercise greater control over their own land, support self-determination, and eliminate bureaucratic delays that stand in the way of homeownership and economic development in Tribal communities.” 158 Cong. Rec. H. 2682 (May 15, 2012). The HEARTH Act was intended to afford Tribes “flexibility to adapt lease terms to suit [their] business and cultural needs” and to “enable [Tribes] to approve leases quickly and efficiently.” H. Rep. 112-427 at 6 (2012).</P>
                <P>
                    Assessment of State and local taxes would obstruct these express Federal policies supporting Tribal economic development and self-determination, and also threaten substantial Tribal interests in effective Tribal government, economic self-sufficiency, and territorial autonomy. 
                    <E T="03">See Michigan</E>
                     v. 
                    <E T="03">Bay Mills Indian Community,</E>
                     572 U.S. 782, 810 (2014) (Sotomayor, J., concurring) (determining that “[a] key goal of the Federal Government is to render Tribes more self-sufficient, and better positioned to fund their own sovereign functions, rather than relying on Federal funding”). The additional costs of State and local taxation have a chilling effect on potential lessees, as well as on a Tribe that, as a result, might refrain from exercising its own sovereign right to impose a Tribal tax to support its infrastructure needs. 
                    <E T="03">See id.</E>
                     at 810-11 (finding that State and local taxes greatly discourage Tribes from raising tax revenue from the same sources because the imposition of double taxation would impede Tribal economic growth).
                </P>
                <P>
                    Similar to BIA's surface leasing regulations, Tribal regulations under the HEARTH Act pervasively cover all aspects of leasing. 
                    <E T="03">See</E>
                     25 U.S.C. 415(h)(3)(B)(i) (requiring Tribal regulations be consistent with BIA surface leasing regulations). Furthermore, the Federal Government remains involved in the Tribal land leasing process by approving the Tribal leasing regulations in the first instance and providing technical assistance, upon request by a Tribe, for the development of an environmental review process. The Secretary also retains authority to take any necessary actions to remedy violations of a lease or of the Tribal regulations, including terminating the lease or rescinding approval of the Tribal regulations and reassuming lease approval responsibilities. Moreover, the Secretary continues to review, approve, and monitor individual Indian land leases and other types of leases not covered under the Tribal regulations according to 25 CFR part 162.
                </P>
                <P>
                    Accordingly, the Federal and Tribal interests weigh heavily in favor of preemption of State and local taxes on lease-related activities and interests, regardless of whether the lease is governed by Tribal leasing regulations or 25 CFR part 162. Improvements, activities, and leasehold or possessory 
                    <PRTPAGE P="16164"/>
                    interests may be subject to taxation by the Shawnee Tribe.
                </P>
                <SIG>
                    <NAME>Scott J. Davis,</NAME>
                    <TITLE>Senior Advisor to the Secretary, Exercising the delegated authority of the Assistant Secretary—Indian Affairs.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06607 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4337-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Bureau of Indian Affairs</SUBAGY>
                <DEPDOC>[256A2100DD/AAMM001010/A0A600000.999900]</DEPDOC>
                <SUBJECT>Pueblo of Santa Clara, New Mexico; Amendments to Liquor Control Ordinance</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Indian Affairs, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        This notice publishes the Pueblo of Santa Clara Liquor Code. This Liquor Code amends the existing Liquor Code, published in the 
                        <E T="04">Federal Register</E>
                         on August 18, 2017.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This Code shall become effective April 17, 2025.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mr. Eric J. Rodriguez, Tribal Government, Southwest Regional Office, Bureau of Indian Affairs, 1001 Indian School Road NW, Albuquerque, New Mexico 87104, 
                        <E T="03">eric.rodriguez@bia.gov,</E>
                         (505) 536-3100.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Pursuant to the Act of August 15, 1953, Public Law 83-277, 67 Stat. 586, 18 U.S.C. 1161, as interpreted by the Supreme Court in 
                    <E T="03">Rice</E>
                     v. 
                    <E T="03">Rehner,</E>
                     463 U.S. 713 (1983), the Secretary of the Interior shall certify and publish in the 
                    <E T="04">Federal Register</E>
                     notice of adopted liquor ordinances for the purpose of regulating liquor transactions in Indian country. On December 13, 2024, the Tribal Council of the Pueblo of Santa Clara adopted amendments to the Santa Clara Pueblo Liquor Code by Resolution No. 2024-101. The Pueblo of Santa Clara, in furtherance of its economic and social goals, has taken positive steps to regulate retail sales of alcohol and use revenues to combat alcohol abuse and its debilitating effects among individuals and family members within the reservation of the Pueblo of Santa Clara.
                </P>
                <P>This notice is published in accordance with the authority delegated by the Secretary of the Interior to the Assistant Secretary-Indian Affairs. I certify that the Pueblo of Santa Clara, New Mexico, duly adopted these amendments to the Pueblo of Santa Clara Liquor Code by on December 13, 2024.</P>
                <SIG>
                    <NAME>Scott Davis,</NAME>
                    <TITLE>Senior Advisor to the Secretary of the Interior, Exercising the delegated Authority of the Assistant Secretary-Indian Affairs.</TITLE>
                </SIG>
                <P>The Pueblo of Santa Clara, New Mexico, Liquor Code, as amended, shall read as follows:</P>
                <HD SOURCE="HD1">PUEBLO OF SANTA CLARA TRIBAL CODE</HD>
                <HD SOURCE="HD1">TITLE 19, CHAPTER 108—LIQUOR CODE SUBCHAPTER 1: GENERAL PROVISIONS</HD>
                <HD SOURCE="HD2">Sec. 108.1 Findings</HD>
                <P>The Tribal Council finds as follows:</P>
                <P>A. The introduction, possession and sale of alcoholic beverages into Santa Clara Indian Lands has long been regarded as a matter of special concern to the Pueblo, that bears directly on the health, welfare and security of the Pueblo and its members; and</P>
                <P>B. Under Federal law and New Mexico state law, and as a matter of inherent Tribal sovereignty, the question of to what extent and under what circumstances alcoholic beverages may be introduced into and sold or consumed within Santa Clara Indian Lands is to be decided by the governing body of the Tribe; and</P>
                <P>C. It is desirable that the Tribal Council legislate comprehensively on the subject of the sale and possession of alcoholic beverages within Santa Clara Indian Lands, both to establish a consistent and reasonable Tribal policy on this important subject, as well as to facilitate economic development projects within Santa Clara Indian Lands that may involve outlets for the sale and consumption of alcoholic beverages; and</P>
                <P>D. It is the policy of the Tribal Council that the introduction, sale and consumption of alcoholic beverages within Santa Clara Indian Lands be carefully regulated so as to protect the public health, safety and welfare, and that licensees be made fully accountable for violations of conditions of their licenses and the consequences thereof.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.2 Definitions</HD>
                <P>As used in this chapter, the following words shall have the following meanings:</P>
                <P>A. “Pueblo” or “Tribe” means the Pueblo of Santa Clara.</P>
                <P>B. “Tribal Council” or “Council” means the Tribal Council of the Pueblo of Santa Clara.</P>
                <P>C. “Governor” means the Governor of the Pueblo of Santa Clara.</P>
                <P>D. “Administrator” means the Tax Administrator of the Pueblo of Santa Clara.</P>
                <P>E. “Person” means any natural person, partnership, corporation, joint venture, association, or other legal entity.</P>
                <P>F “Sale” or “sell” means any exchange, barter, or other transfer of goods from one person to another for commercial purposes, whether with or without consideration.</P>
                <P>G. “Liquor” or “Alcoholic Beverage” includes the four varieties of liquor commonly referred to as alcohol, spirits, wine and beer, and all fermented, spirituous, vinous or malt liquors or combinations thereof, mixed liquor, any part of which is fermented, spirituous, vinous, or malt liquor, or any otherwise intoxicating liquid, including every liquid or solid or semi-solid or other substance, patented or not, containing alcohol, spirits, wine or beer and intended for oral consumption.</P>
                <P>H. “Licensee” means a person who has been issued a license to sell alcoholic beverages on the licensed premises under the provisions of this Liquor Code.</P>
                <P>I. “Licensed Premises” means the location within Santa Clara Indian Lands at which a licensee is permitted to sell and allow the consumption of alcoholic beverages, and may, if requested by the applicant and approved by the Tribal Council, include any related or associated areas or facilities under the control of the licensee, or within which the licensee is otherwise authorized to conduct business (but subject to any conditions or limitations as to sales within such area that may be imposed by the Governor in issuance of the license).</P>
                <P>J. “Santa Clara Indian Lands” means all lands within the exterior boundaries of the Santa Clara Indian Reservation, all lands within the exterior boundaries of the Santa Clara Pueblo Grant, and all other lands owned by the Pueblo subject to Federal law restrictions on alienation or held by the United States for the use and benefit of the Pueblo.</P>
                <P>
                    K. “Special Event” means a bona fide special occasion such as a fair, fiesta, show, tournament, contest, meeting, picnic or similar event held on Santa Clara Indian Lands that is sponsored by an established business or non-governmental organization, lasting no more than three days. A special event may be open to the public or to a designated group, and it may be a one-time event or periodic, provided, however, that such events held more than four times a year by the same business or organization shall not be 
                    <PRTPAGE P="16165"/>
                    deemed special events for purposes of this Liquor Code.
                </P>
                <P>L. “Server” means an individual who sells, serves or dispenses alcoholic beverages for consumption on or off licensed premises, and including persons who manage, direct or control the sale or service of such beverages.</P>
                <P>M. “Liquor Code” means the Santa Clara Pueblo Liquor Code, this chapter.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.3 Sovereign Immunity</HD>
                <P>Nothing in the Liquor Code shall be construed as a waiver or limitation of the sovereign immunity of the Pueblo.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.4 Initial Compliance</HD>
                <P>No person shall be disqualified from being issued a license under the provisions of this Liquor Code, or shall be found to have violated any provision of this Liquor Code, solely because such person, having been duly authorized to engage in the sale of alcoholic beverages within Santa Clara Indian Lands under the law as it existed prior to enactment of this Liquor Code, continues to engage in such business without a license issued under the provisions of this Liquor Code after the effective date hereof, so long as such person complies with the provisions of this Section. Within 90 days after the effective date of this Liquor Code (or within 30 days after receiving written notice from the Pueblo of the enactment of the Liquor Code, whichever is later) any person who is licensed to sell alcoholic beverages within Santa Clara Pueblo Indian Lands under the law as it existed prior to the enactment of this Liquor Code shall submit an application for a license under the provisions of this Liquor Code. Upon the issuance of a license under the provisions of this Liquor Code to such person, or upon the rejection of an application for such license by such person, no license issued by the State of New Mexico or issued under the provisions of any prior law of the Pueblo that is held by such person, or that purports to authorize the possession, sale or consumption of alcoholic beverages on premises covered by a license issued (or a license application rejected) under the provisions of this Liquor Code, shall have any further validity or effect within Santa Clara Indian Lands.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.5 Severability</HD>
                <P>In the event any provision of this Liquor Code is held invalid or unenforceable by any court of competent jurisdiction, the remainder of the Code shall continue in full force and effect, notwithstanding the invalidity or unenforceability of such provision, to the fullest extent practicable.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.6 Issuance of Regulations</HD>
                <P>The Administrator shall have the authority to issue such regulations, consistent with the provisions of this Liquor Code, as may be helpful to the effective administration of the Liquor Code, provided that such regulations shall be provided to the Tribal Council no less than 90 days prior to their effective date. If the Council votes to reject the regulations, or any particular provisions thereof, within such 90-day time period, the regulations, or such provisions as were rejected, shall not take effect.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD1">Subchapter 2: Sale, Possession and Consumption of Alcoholic Beverages</HD>
                <HD SOURCE="HD2">Sec. 108.7 Prohibition</HD>
                <P>The sale, introduction for sale, purchase, or other commercial dealing in alcoholic beverages, except as is specifically authorized by the Liquor Code, is prohibited within Santa Clara Indian Lands.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.8 Possession for Personal Use</HD>
                <P>Possession of alcoholic beverages for personal use shall be lawful within Santa Clara Indian Lands only if such alcoholic beverages were lawfully purchased from an establishment duly licensed to sell such beverages, whether on or off Santa Clara Indian Lands, and are possessed by a person or persons 21 years of age or older. Such possession is otherwise prohibited.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.9 Transportation Through Reservation Not Affected</HD>
                <P>Nothing herein shall pertain to the otherwise lawful transportation of alcoholic beverages through Santa Clara Indian Lands by persons remaining upon public highways (or other paved public facilities for motor vehicles) and where such beverages are not delivered, sold or offered for sale to anyone within Santa Clara Indian Lands.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.10 Requirement of Public License</HD>
                <P>No person shall sell any alcoholic beverage within Santa Clara Indian Lands, or offer any such beverage for sale, unless such person holds a license issued by the Pueblo under the provisions of this chapter that is in effect.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.; amended by Res. No. 2016-113, Sept. 12, 2016; approved by Sec'y, July 13, 2017.</P>
                <HD SOURCE="HD2">Sec. 108.11 All Sales for Personal Use</HD>
                <P>No person licensed to sell alcoholic beverages within Santa Clara Indian Lands shall sell any such beverage for resale, but all such sales shall be for the personal use of the purchaser. Nothing herein shall prohibit a duly licensed wholesale dealer in alcoholic beverages from selling and delivering such beverages to properly licensed retailers within Santa Clara Indian Lands, so long as such sales and deliveries are otherwise in conformity with the laws of the State of New Mexico and this Liquor Code, and so long as such wholesale dealer registers with the Administrator and pays any taxes due on such sales.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.12 Package Sales and Sales of Liquor by the Drink Permitted</HD>
                <P>Sales of alcoholic beverages on Santa Clara Indian Lands may be in package form or for consumption on the premises, or both, so long as the seller is properly licensed by the Pueblo to make sales of that type. No seller of alcoholic beverages shall permit any person to consume, on premises where liquor by the drink is authorized to be sold, any alcoholic beverages purchased elsewhere by the consumer, except that a restaurant holding a premises license may allow a customer who is ordering a meal, and who is legally entitled to consume alcoholic beverages, to bring onto the premises one or more bottles of wine that were legally acquired elsewhere and came from a New Mexico licensed wholesaler (but not to exceed one bottle per person at the table), for consumption with such customer's meal, provided that any such bottle is opened by an employee of the restaurant who is legally entitled to serve alcoholic beverages, and the restaurant may charge a corkage fee for each such bottle opened.</P>
                <P>
                    Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001; amended by Res. No. 2016-113, Sept. 
                    <PRTPAGE P="16166"/>
                    12, 2016; approved by Sec'y, July 13, 2017.
                </P>
                <HD SOURCE="HD2">Sec. 108.13 No Sales to Minors</HD>
                <P>No alcoholic beverages may be sold within Santa Clara Indian Lands to any person under the age of 21 years.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.14 Hours and Days of Sale</HD>
                <P>Alcoholic beverages may be sold, offered for sale, delivered or consumed on licensed premises within Santa Clara Indian Lands every day during the following hours:</P>
                <P>A. From 8:00 a.m. until 12:00 midnight; and</P>
                <P>B. From 12:01 a.m. until 2:00 a.m.; provided, however, that any such sales made between midnight and 2:00 a.m. shall only be for consumption on the premises.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001; amended by Res. No. 2016-113, Sept. 12, 2016; approved by Sec'y, July 13, 2017.</P>
                <HD SOURCE="HD2">Sec. 108.15 Sales on Election Day</HD>
                <P>[Repealed.]</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001; repealed by Res. No. 2016-113, Sept. 12, 2016; approved by Sec'y, July 13, 2017.</P>
                <HD SOURCE="HD2">Sec. 108.16 Other Prohibitions on Sales</HD>
                <P>The Tribal Council may, by duly enacted resolution, establish other days on which or times at which sales or consumption of alcoholic beverages are not permitted within Santa Clara Indian Lands, or specified portions thereof. The Council shall give notice of any such enactment promptly to all licensees within Santa Clara Indian Lands. In addition, the Governor of the Pueblo may, in the event of a bona fide emergency, and by written order, prohibit the sale of any alcoholic beverages within Santa Clara Indian Lands, or any specified portions thereof, for a period of time not to exceed 48 hours. The Governor shall give prompt notice of such emergency order to all licensees within Santa Clara Indian Lands. No such emergency order may extend beyond 48 hours, unless during that time the Tribal Council meets and determines by resolution that the emergency requires a further extension of such order.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.17 Location of Sales; Consumption</HD>
                <P>No person licensed to sell alcoholic beverages within Santa Clara Indian Lands shall make such sales except at the licensed premises specifically designated in such license. No person holding only a premises license shall permit alcoholic beverages purchased from such licensee for consumption on the premises to be consumed off of the licensed premises; except that nothing herein shall prohibit a premises licensee that is a restaurant from permitting a customer who has purchased a bottle of wine with a meal, but only partially consumed the contents of such bottle, from taking the partially consumed bottle off of the premises, after such bottle has been recorked by the licensee and placed in a sealed bag, to which a receipt for the purchase of the bottle has been affixed.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001; amended by Res. No. 2016-113, Sept. 12, 2016; approved by Sec'y, July 13, 2017.</P>
                <HD SOURCE="HD2">Sec. 108.18 Sales To Be Made by Adults; Exception for Restaurant Servers</HD>
                <P>A. Except as provided in subsection B of this Section, no person shall take any order, make any delivery, or accept payment for any sale of alcoholic beverages within Santa Clara Indian Lands, or otherwise have any direct involvement in any such sale, who is less than 21 years of age.</P>
                <P>B. A person holding a premises license may employ persons eighteen (18) years of age or older to sell or serve alcoholic beverages in an establishment that is held out to the public as a place where meals are prepared and served and the primary source of revenue is food, and where the sale or consumption of alcoholic beverages is not the primary activity, provided that such person has successfully completed, within the past five years, an alcohol server education program and examination approved by the director of the New Mexico Alcohol and Gaming Division, and further provided that a person under twenty-one (21) years of age shall not be employed as a bartender or deliverer (a deliverer being a person who transports alcoholic beverages from a licensed premises to consumers, off of a licensed premises at or near the time of sale).</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.19 All Sales Cash</HD>
                <P>No licensee shall make any sale of any alcoholic beverages within Santa Clara Indian Lands without receiving payment therefor by cash, check, credit card or cash equivalent, such as, in the case of a licensee that is a gaming establishment, chips, or player's club points in accordance with policies of the licensee applicable to the redemption of such points, at or about the time the sale is made; provided, that nothing herein shall preclude a licensee from receiving a delivery of alcoholic beverages from a duly authorized wholesaler where arrangements have been made to pay for such delivery at a different time; and provided further that nothing herein shall preclude a licensee from allowing a customer to purchase more than one alcoholic beverage in sequence, and to pay for all such purchases at the conclusion thereof, so long as payment is made in full before the customer has left the licensed premises; and provided further that nothing herein shall prevent a licensee from distributing alcoholic beverages to customers without charge, so long as such distribution is not otherwise in violation of any provision of this Liquor Code.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001; amended by Res. No. 2016-113, Sept. 12, 2016; approved by Sec'y, July 13, 2017.</P>
                <HD SOURCE="HD2">Sec. 108.20 Nuisances Prohibited</HD>
                <P>No licensee shall knowingly conduct its business in such a location, or in such a manner, or at such times of day or night, as to amount to a nuisance, in that such activity is injurious to public health, safety or morals, or interferes with the exercise and enjoyment of public rights, including the right to use public property.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD1">Subchapter 3: Licensing and Regulation</HD>
                <HD SOURCE="HD2">Sec. 108.21 Requirement of License</HD>
                <P>[Repealed.]</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001; repealed by Res. No. 2016-113, Sept. 12, 2016; approved by Sec'y, July 13, 2017.</P>
                <HD SOURCE="HD2">Sec. 108.22 Classes of Licenses</HD>
                <P>The following types or classes of licenses for the sale or distribution of alcoholic beverages within Santa Clara Indian Lands shall be permitted:</P>
                <P>A. Package license, which shall authorize the licensee to store, possess, sell and offer for sale alcoholic beverages in sealed containers, for consumption only off of the licensed premises.</P>
                <P>
                    B. Premises license, which shall authorize the licensee to store, possess and sell alcoholic beverages in open containers, for consumption on the licensed premises only, and to permit such consumption on the licensed premises only.
                    <PRTPAGE P="16167"/>
                </P>
                <P>C. Special event license, which shall authorize the licensee to possess, distribute, sell and offer for sale alcoholic beverages for consumption only on the licensed premises, and to permit such consumption on the licensed premises only, but only for a bona fide special event, and only during the period or periods specified in such license, which period or periods shall be limited to the periods during which the special event is occurring and from beginning to end shall not exceed 72 hours.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.23 Prohibited Zone</HD>
                <P>Notwithstanding any other provision of this chapter, no license shall be issued under the provisions of this Liquor Code for any location as the proposed licensed premises that is within the geographical area encompassed by Sections 9, 10, 15 and 16, Township 20 North, Range 8 East, New Mexico Principal Meridian, and the area located south of said Sections 15 and 16, bounded on the east by the Rio Grande and on the west by the right-of-way line for NM Rte. 30, to the south boundary of the Santa Clara Pueblo Grant. The area described herein from which licenses are excluded is hereinafter referred to as the “Prohibited Zone.”</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.24 Qualifications for License</HD>
                <P>A. No person shall be entitled to be issued a license under the provisions of this Liquor Code who has previously been the subject of any proceeding resulting in the revocation of any license for the sale of alcoholic beverages issued by the Pueblo or by any state or other jurisdiction, or who has been convicted of any felony in any jurisdiction involving theft, dishonesty, corruption, embezzlement or violation of laws regulating the sale, possession and use of alcoholic beverages, or who (if a natural person) has not at the time the application for license is submitted attained the age of 25 years, or who is otherwise determined by the Pueblo to be unfit to be licensed to sell alcoholic beverages, or (if a natural person) whose spouse is a person not qualified to hold a license under the provisions of this section.</P>
                <P>B. No partnership, corporation or other legal entity shall be entitled to be issued a license under the provisions of this Liquor Code if any individual occupying any management or supervisory position within such entity, or who sits on the management committee or board of directors or trustees thereof, or who holds or controls a financial interest of ten percent or more in such entity, is a person who would not be entitled to be issued a license under the provisions of this section.</P>
                <P>C. No person shall be entitled to be issued a package or premises license hereunder unless such person owns, or has an approved lease or other valid interest in, land within Santa Clara Indian Lands, is lawfully entitled to engage in a business on such land with which such license would be compatible, and can demonstrate that such person is otherwise capable of complying with all of the requirements imposed on licensees by this Liquor Code.</P>
                <P>D. An applicant for a package or premises license hereunder, including, if the applicant is not a natural person, each principal in the applicant entity who will have any direct involvement in the proposed business, must have successfully completed within the three years preceding the date of the application an alcohol server education program and examination that is approved by the director of the New Mexico Alcohol and Gaming Division.</P>
                <P>E. Notwithstanding anything in this section to the contrary, the Pueblo and its wholly owned commercial entities shall be entitled to be issued licenses hereunder upon application therefor to the Administrator, provided that all other provisions of this Liquor Code are complied with.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.25 Package and Premises License Application; Procedure; Fees</HD>
                <P>A. Every person seeking a package or premises license under the provisions of this Liquor Code (other than the Pueblo or any of its wholly owned commercial entities) shall submit to the Administrator a written application, under oath, in the form prescribed by and containing the information required by this section.</P>
                <P>B. If the applicant is a natural person, the application shall contain, at a minimum, all of the following information:</P>
                <P>1. The full legal name of the applicant, plus any other names under which the applicant has been known or done business during the previous 20 years, and the applicant's date and place of birth, as shown by a certified copy of the applicant's birth certificate.</P>
                <P>2. The applicant's current legal residence address and business address, if any, and every residence address that the applicant has maintained during the previous ten years, with the dates during which each such address was current.</P>
                <P>3. The trade name, business address and description of every business in which the applicant has engaged or had any interest (other than stock ownership or partnership interest amounting to less than five percent of total capital) during the previous ten years, and the dates during which the applicant engaged in or held an interest in any such business.</P>
                <P>4. A listing of every other jurisdiction in which the applicant has ever applied for a license to sell or distribute alcoholic beverages, the date on which each such application was filed, the name of the regulatory agency with which the application was filed, the action taken on each such application, and if any such license was issued, the dates during which it remained in effect, and as to each such license a statement whether any action was ever taken by the regulatory body to suspend or revoke such license, with full dates and details of any such incident.</P>
                <P>5. A listing of every crime with which the applicant has ever been charged, other than routine traffic offenses (but including any charge of driving while intoxicated or the like), giving as to each the date on which the charge was made, the location, the jurisdiction, the court in which the matter was heard, and the outcome or ultimate disposition thereof.</P>
                <P>6. The name and address of every person or entity holding any security interest in any of the assets of the business to be conducted by the applicant, or in any of the proceeds of such business.</P>
                <P>7. A detailed plat of the applicant's business premises within Santa Clara Indian Lands including the floor plans of any structure and the details of any exterior areas intended to be part of the licensed premises, together with evidence of the applicant's right to conduct business on such premises.</P>
                <P>8. A detailed description of the business conducted or intended to be conducted on the licensed premises and including (but not limited to) hours of operation and number of employees.</P>
                <P>9. The type(s) of license(s) requested.</P>
                <P>C. If the applicant is a corporation, the corporation, each officer of the corporation and every person holding 10% or more of the outstanding stock in the corporation shall submit an application complying with the provisions of paragraph B of this section, and in addition, the applicant shall also submit the following:</P>
                <P>1. A certified copy of its Articles of Incorporation and Bylaws.</P>
                <P>
                    2. The names and addresses of all officers and directors and those 
                    <PRTPAGE P="16168"/>
                    stockholders owning 5% or more of the voting stock of the corporation, and the amount of stock held by each such stockholder.
                </P>
                <P>3. The name of the resident agent of the corporation who would be authorized to accept service of process, including orders and notices issued by the Pueblo, and who will have principal supervisory responsibility for the business to be conducted on the licensed premises.</P>
                <P>4. Such additional information regarding the corporation as the Administrator may require to assure a full disclosure of the corporation's structure and financial responsibility.</P>
                <P>D. If the applicant is a partnership or a limited liability corporation (“LLC”), the partnership or LLC, the managing partner or manager and every person or entity having an interest amounting to 10% or more of the total equity interest in the partnership or LLC shall submit an application complying with the provisions of paragraph B of this section, and in addition, the applicant shall submit the following:</P>
                <P>1. A certified copy of the Partnership Agreement, or, in the case of an LLC, the Articles of Organization and the Operating Agreement.</P>
                <P>2. The names and addresses of all general partners and of all limited partners contributing 10% or more of the total value of contributions made to the limited partnership or who are entitled to 10% or more of any distributions of the limited partnership; and in the case of an LLC, the names and addresses of every person or entity holding an ownership interest of 10% or more.</P>
                <P>3. The name and address of the partner, manager or other agent of the partnership or LLC who or which is authorized to accept service of process, including orders and notices issued by the Pueblo, and who will have principal supervisory responsibility for the business to be conducted in the licensed premises.</P>
                <P>4. Such additional information regarding the partnership or LLC as the Administrator may require to assure a full disclosure of the partnership's or LLC's structure and financial responsibility.</P>
                <P>E. Every applicant who is a natural person, and every person required by paragraphs C or D of this section to comply with the provisions of paragraph B, shall also submit with the application a complete set of fingerprints, taken under the supervision of and certified to by an officer of an authorized law enforcement agency located within the State of New Mexico.</P>
                <P>F. The applicant shall also submit proof that applicant, if a natural person, and every person who will be directly involved in the sale or service of alcoholic beverages as part of the applicant's business, has successfully completed, within the three years next preceding the date of the application, an alcohol server education program and examination approved by the director of the New Mexico Alcohol and Gaming Division.</P>
                <P>G. Every applicant for either a package license or a premises license shall submit with the completed license application a non-refundable license processing fee, in the amount set forth below:</P>
                <FP SOURCE="FP-1">Package license $5,000.00</FP>
                <FP SOURCE="FP-1">Premises license $1,000.00</FP>
                <P>In addition, each such applicant shall pay a fee to cover the cost of a background investigation, in an amount to be set by the Administrator from time to time, but which shall not exceed the sum of $1000.00.</P>
                <P>H. Upon receiving a completed license application together with the required fees, the Administrator shall cause a background investigation to be performed of the applicant, to determine whether the applicant is qualified to be licensed under the provisions of this Liquor Code. Upon the written recommendation of the Administrator (if requested by the applicant), the Tribal Council may, in its discretion, approve the issuance of a preliminary license to the applicant effective for a period of no more than 90 days, but which shall be renewable for one additional period of 90 days in the event the background investigation cannot be completed within the first 90-day period; provided, however, that in no event shall the issuance of a preliminary license, or the renewal of such license for an additional 90-day period, entitle the applicant to favorable consideration with respect to the application for a package or premises license.</P>
                <P>I. The Pueblo or any of its wholly owned commercial entities may apply for a package or premises license by submitting an application to the Administrator identifying the applicant, describing in detail the purpose of the license, including a detailed description of the proposed licensed premises, and including the appropriate fee as set forth in Paragraph G of this section.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001; amended by Res. No. 2016-113, Sept. 12, 2016; approved by Sec'y, July 13, 2017.</P>
                <HD SOURCE="HD2">Sec. 108.26 Action on Application</HD>
                <P>A. Upon making a determination that an applicant for a package or premises license satisfies the requirements of this chapter, the Administrator shall prepare a written recommendation for the issuance of such license, setting forth sufficient information about the applicant, the proposed business, and any other matters deemed relevant by the Administrator, to enable the Tribal Council to evaluate the merits of the license, together with any and all supporting data deemed suitable by the Administrator. The recommendation shall include a detailed description of the proposed leased premises, and any limitations or conditions the Administrator recommends be included in the license. The Administrator shall deliver the recommendation to the Governor, who shall place the matter on the agenda for the Tribal Council's next regular meeting that is at least fifteen days after the recommendation was received by the Governor, and shall give written notice thereof to the Administrator and the applicant, and to the public. The Governor shall provide a complete copy of the Administrator's recommendation, with all supporting documentation, to each member of the Tribal Council, by no later than ten days before the meeting at which the matter is to be heard.</P>
                <P>B. The Tribal Council shall take up the Administrator's recommendation at its next regular meeting. The Administrator shall explain the application and the basis for his or her recommendation, and the applicant shall be permitted to speak in favor of the application. Any interested member of the public may also be heard on the matter. The Tribal Council shall vote either to approve or deny the application, and if it votes to approve the license, it shall specify whether the Administrator's recommendations as to the description of the licensed premises and any limitations or conditions on the license are accepted, rejected, or modified, and may add any additional limitations or conditions it deems appropriate.</P>
                <P>
                    C. If the Administrator concludes that the applicant is not qualified for a license under the provisions of Section 108.24 of this chapter, or that the application is otherwise not allowable under the provisions of this chapter, he or she shall give written notice to the applicant that the license is rejected, by certified mail, return receipt requested. The applicant may appeal that decision to the Tribal Council, by delivering written notice of such appeal to the office of the Governor, with a copy to 
                    <PRTPAGE P="16169"/>
                    the Administrator, within thirty days of the date the notice of rejection was received. Upon receipt of the notice of appeal, the Governor shall set the matter for hearing before the Tribal Council at a regular meeting that is no less than thirty days, but no more than forty-five days, from the date of receipt of the notice. The Governor shall send written notice to the applicant and the Administrator of the date and time the appeal is to be heard and shall give such notice to the public.
                </P>
                <P>D. By no less than fifteen days before the hearing, the Administrator shall prepare and submit to the Governor a report explaining in detail the basis for his or her decision to reject the application, to which shall be attached the complete application submitted by the applicant and any additional information concerning the application obtained by the Administrator. By the same deadline, the applicant may submit to the Governor its argument in support of the application, together with such documents as the applicant deems relevant. The Governor shall provide each member of the Council with complete copies of both submissions by no less than ten days before the date of the hearing.</P>
                <P>E. At the hearing on the applicant's appeal, the applicant or its representative shall present argument in favor of the application, and the Administrator or his or her representative shall present argument in favor of the Administrator's decision. The Council may permit members of the public to speak. The Council shall vote either to uphold or reverse the Administrator's decision on the application. If the Council votes to reverse the decision, and to approve the application, it shall further determine whether any limitations or conditions should be attached to the license.</P>
                <P>F. In the event the Council approves the issuance of a license, the Administrator shall issue the license forthwith, incorporating therein any limitations or conditions thereon approved by the Tribal Council.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001; amended by Res. No. 2016-113, Sept. 12, 2016; approved by Sec'y, July 13, 2017.</P>
                <HD SOURCE="HD2">Sec. 108.27 Term; Renewal; Fee</HD>
                <P>A. Each package or premises license issued hereunder shall have a term of one (1) year from the date of issuance, provided that such license shall be renewable for additional periods of one year each by any licensee who has complied fully with the terms and provisions of the license and of this Liquor Code during the term of the license, and who remains fully qualified to be licensed under the provisions of Section 108.24 of this Chapter. A licensee who is eligible for renewal of his or her license shall submit to the Administrator an application for renewal on a form specified by the Administrator, together with proof that the licensee and each person employed by the licensee as a server has successfully completed, within the past five years, an alcohol server education program and examination approved by the director of the New Mexico Alcohol and Gaming Division, and a license renewal fee in the amount of $500.00, no less than thirty (30) days prior to the expiration date of the license.</P>
                <P>B. The failure to submit a timely renewal application, with the required fee, may subject the licensee to a late charge of $500.00. If the renewal application is not submitted prior to expiration of the license, the Administrator may treat the license as having expired, and may require the licensee to file a new application in compliance with Section 108.25 of this chapter.</P>
                <P>C. The Administrator may, in his or her discretion, conduct an update on the applicant's background investigation prior to acting on any renewal application, and the Administrator shall update such investigation prior to issuing a third renewal of a license since the last such investigation was performed, or if the Administrator has acquired information indicating that the applicant is not qualified for a license under the provisions of Section 108.24 of this chapter. Whenever any such investigation is performed, the Administrator shall require the applicant to pay an additional fee to cover the costs of such investigation, in an amount to be determined by the Administrator but in no event in excess of the sum of $1000.00.</P>
                <P>D. The Administrator may refuse to approve a renewal of a license in the event a background investigation reveals facts that would disqualify the applicant from being licensed under this Liquor Code, or if the Administrator determines that the licensee has operated in a manner violative of the provisions of this chapter. In that event, the applicant shall have the right to appeal the Administrator's decision to the Tribal Council, which appeal shall be governed by and conducted in accordance with the same requirements and procedures that apply an appeal of a denial of an original application, as set forth in Section 108.26 (C), (D), and (E) of this chapter.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.28 Conditions of License</HD>
                <P>No licensee shall have any property interest in any license issued under the provisions of this Liquor Code, and every such license shall be deemed to confer a non-transferable privilege, revocable by the Pueblo in accordance with the provisions of this Chapter. The continued validity of every package and premises license issued hereunder shall be dependent upon the following conditions:</P>
                <P>A. Every representation made by the licensee and any of its officers, directors, shareholders, partners or other persons required to submit information in support of the application, shall have been true at the time such information was submitted, and shall continue to be true, except to the extent the licensee advises the Administrator in writing of any change in any such information, and notwithstanding any such change, the licensee shall continue to be qualified to be licensed under the provisions of this Liquor Code.</P>
                <P>B. The licensee shall at all times conduct its business on Santa Clara Indian Lands in full compliance with the provisions of this Liquor Code and with the other laws of the Pueblo.</P>
                <P>C. The licensee shall maintain in force, public liability insurance covering the licensed premises, insuring the licensee and the Pueblo against any claims, losses or liability whatsoever for any acts or omissions of the licensee or of any business invitee on the licensed premises resulting in injury, loss or damage to any other party, with coverage limits of at least $1 million per injured person, and the Administrator shall at all times have written evidence of the continued existence of such policy of insurance.</P>
                <P>D. The licensee shall be lawfully entitled to engage in business within Santa Clara Indian Lands, and shall have paid all required rentals, assessments, taxes, or other payments due the Pueblo.</P>
                <P>E. The business conducted on the licensed premises shall be conducted by the licensee or its employees directly, and shall not be conducted by any lessee, sublessee, assignee or other transferee, nor shall any license issued hereunder or any interest therein be sold, assigned, leased or otherwise transferred to any other person.</P>
                <P>
                    F. All alcoholic beverages sold on the licensed premises shall have been obtained from a New Mexico licensed wholesaler.
                    <PRTPAGE P="16170"/>
                </P>
                <P>G. No person shall be employed by the licensee as a server who has not, within the past five years, successfully completed an alcohol server education program and examination approved by the director of the New Mexico Alcohol and Gaming Division.</P>
                <P>H. No licensee shall sell, serve or deliver any alcoholic beverage to a customer through a drive-up window, or otherwise to a customer who at the time of the transaction is in a motor vehicle.</P>
                <P>I. By having applied for and obtained a license hereunder, the licensee shall be deemed to have submitted to the jurisdiction of the Tribal Court of the Pueblo with respect to any action brought by the Pueblo or any of its agencies or offices to enforce the provisions of this Liquor Code or any other provision of tribal law, or by any person claiming to have suffered loss or damage due to any act or omission of the licensee in the course of the conduct of its business on Santa Clara Indian Lands.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001; amended by Res. No. 2016-113, Sept. 12, 2016; approved by Sec'y, July 13, 2017.</P>
                <HD SOURCE="HD2">Sec. 108.29 Sanctions for Violation of License</HD>
                <P>A. Upon determining that any person licensed by the Pueblo to sell alcoholic beverages under the provisions of the Liquor Code is for any reason no longer qualified to hold such license under the provisions of Section 108.24 of the Liquor Code, or has violated any of the conditions set forth in Section 108.28, the Administrator shall immediately serve written notice upon such licensee directing that he show cause within ten calendar days why his license should not be suspended or revoked, or a fine imposed, or both. The notice shall specify the precise grounds relied upon and the action proposed.</P>
                <P>B. If the licensee fails to respond to such notice within ten calendar days of service of such notice, the Administrator shall issue an order suspending the license for such period as the Administrator deems appropriate, or revoking the license, effective immediately, or imposing a fine, in such amount as the Administrator deems reasonable. The licensee may request a hearing on such notice, by filing a written response and a request for hearing, within the ten-day period, with the Administrator and with the Clerk of the Santa Clara Tribal Court. The hearing shall be held before the Tribal Court, no later than 30 calendar days after receipt of such request, unless the Court for good cause extends such time period.</P>
                <P>C. At the hearing, the Administrator shall have the burden to prove facts supporting the contentions set forth in the notice, and justifying the sanctions proposed in the notice. The licensee shall have the right to present its evidence in response.</P>
                <P>D. The Court after considering all of the evidence and arguments shall issue a written decision, within fifteen days after the hearing concludes, either upholding the proposed action of the Administrator, modifying such action by imposing some lesser penalty, or ruling in favor of the licensee, and such decision shall be final and conclusive.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.30 Special Event License</HD>
                <P>A. Any established business or any non-governmental organization that includes any member of the Pueblo, that has authority to conduct any activities within Santa Clara Indian Lands and that is not a licensee hereunder, may apply to the Administrator for a special event license, which shall entitle the applicant to distribute alcoholic beverages, whether or not for consideration, in connection with a bona fide special event to be held by the applicant within Santa Clara Indian Lands. Any such application must be filed in writing, in a form prescribed by the Administrator, no later than 45 calendar days prior to the event, must be accompanied by a fee in the amount of $50.00, and must contain at least the following information:</P>
                <P>1. The nature and purpose of the event, the identity of the applicant and its relationship to the event, and a description of the persons who are invited to participate in the event, including their ages;</P>
                <P>2. The precise location within Santa Clara Indian Lands where the event will occur, and where alcoholic beverages will be distributed, no part of which shall be within the Prohibited Zone;</P>
                <P>3. The exact days and times during which the event will occur (provided, that in no event shall any license be in effect for a period exceeding 72 hours, from the beginning of the first day of the event until the end of the last day);</P>
                <P>4. The nature of any food and beverages to be distributed, and the manner in which such distribution shall occur;</P>
                <P>5. Details of all provisions made by the applicant for sanitation, security and other measures to protect the health and welfare of participants at the event;</P>
                <P>6. Certification that the event will be covered by a policy of public liability insurance as described in Section 108.28 (C) of this Liquor Code, that includes the Pueblo as a co-insured.</P>
                <P>7. Any other information required by the Administrator relative to the event.</P>
                <P>B. The Administrator shall review the application, and shall prepare a written recommendation as to whether the application should be approved or denied, and whether it should be conditioned or limited in any respect, by no later than ten days following receipt of the complete application, which recommendation, together with any supporting documents, shall be delivered to the office of the Governor.</P>
                <P>C. The Governor shall place the application on the agenda of the next regular Tribal Council meeting that is at least fifteen days after the Administrator's recommendation is received and shall give written notice of the date and time of such meeting to the applicant and the Administrator. The Governor shall provide complete copies of the Administrator's recommendation to each member of the Council by no later than ten days before the meeting. The Tribal Council shall hear presentations from the applicant and the administrator on the application and shall vote to approve or reject the application. If the Council votes to approve the application, it shall also decide whether the license should be conditioned or limited in any fashion. If the application is approved, the Administrator shall issue the license, including any conditions or limitations approved by the Council, and specifying the hours during which and the premises within which sales, distribution and consumption of alcoholic beverages may occur.</P>
                <P>D. Alcoholic beverages may be sold or distributed pursuant to a special event license only at the location and during the hours specified in such license, in connection with the special event, only to participants in such special event, and only for consumption on the premises described in the license. Such sales or distribution must comply with any conditions imposed by the license, and with all other applicable provisions of this Liquor Code. All such alcoholic beverages must have been obtained from a New Mexico licensed wholesaler or retailer.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.31 Display of License</HD>
                <P>
                    Every person licensed by the Pueblo to sell alcoholic beverages within Santa Clara Indian Lands shall prominently display the license on the licensed premises during hours of operation.
                    <PRTPAGE P="16171"/>
                </P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.32 Alcoholism Treatment Tax</HD>
                <P>There is hereby imposed a tax, that is in addiction to any other applicable tax, in the amount of two percent of the gross receipts of each licensee from sales of alcoholic beverages, which shall be paid monthly by each licensee to the Administrator. The proceeds of this tax shall be maintained by the Administrator in a special fund, which shall be utilized solely to fund programs for the prevention and treatment of alcoholism and related problems, as determined from time to time by the Tribal Council. The Administrator may, by the issuance of appropriate regulations, establish procedures for the enforcement of this Section.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD1">Subchapter 4: Offenses</HD>
                <HD SOURCE="HD2">Sec. 108.33 Purchase From or Sale to Unauthorized Persons</HD>
                <P>Within Santa Clara Indian Lands, no person shall purchase any alcoholic beverage at retail except from a person licensed by the Pueblo under the provisions of this title; no person except a person licensed by the Pueblo under the provisions of this title shall sell any alcoholic beverage at retail; nor shall any person sell any alcoholic beverage for resale within Santa Clara Indian Lands to any person other than a person properly licensed by the Pueblo under the provisions of this chapter.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.34 Sale to Minors</HD>
                <P>A. No person shall sell or provide any alcoholic beverage to any person under the age of 21 years.</P>
                <P>B. It shall be a defense to an alleged violation of this Section that the purchaser presented to the seller an apparently valid identification document showing the purchaser's age to be 21 years or older, and that the seller had no actual or constructive knowledge of the falsity of the identification document and relied in good faith on its apparent validity.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.35 Purchase by Minor</HD>
                <P>No person under the age of 21 years shall purchase, attempt to purchase or possess any alcoholic beverage.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.36 Sale to Person Under the Influence of Alcohol</HD>
                <P>No person shall sell any alcoholic beverage to a person who the seller has reason to believe is under the influence of alcohol or who the seller has reason to believe intends to provide such alcoholic beverage to a person under the influence of alcohol.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.37 Purchase by Person Under the Influence of Alcohol</HD>
                <P>No person under the influence of alcohol shall purchase any alcoholic beverage.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.38 Bringing Liquor Onto Licensed Premises</HD>
                <P>No person shall bring any alcoholic beverage for personal consumption onto any premises within Santa Clara Indian Lands where liquor is authorized to be sold by the drink, unless such beverage was purchased on such premises, or unless the possession or distribution of such beverages on such premises is otherwise licensed under the provisions of this Liquor Code.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.39 Use of False or Altered Identification</HD>
                <P>No person shall purchase or attempt to purchase any alcoholic beverage by the use of any false or altered identification document that falsely purports to show the individual to be 21 years of age or older.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.40 Penalties</HD>
                <P>A. Any person convicted of committing any violation of this Chapter shall be subject to punishment of up to one (1) year imprisonment or a fine not to exceed Five Thousand Dollars ($5,000.00), or to both such imprisonment and fine.</P>
                <P>B. Any person not a member of a federally recognized Indian tribe, upon committing any violation of any provision of this Chapter, may be subject to a civil action for trespass, and upon having been determined by the court to have committed the alleged violation, shall be found to have trespassed upon the Lands of the Pueblo, and shall be assessed such damages as the court deems appropriate in the circumstances.</P>
                <P>C. Any person suspected of having violated any provision of this Chapter shall, in addition to any other penalty imposed hereunder, be required to surrender any alcoholic beverages in such person's possession to the officer making the arrest or issuing the complaint.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
                <HD SOURCE="HD2">Sec. 108.41 Jurisdiction</HD>
                <P>Any and all actions, whether civil or criminal, pertaining to alleged violations of this title, or seeking any relief against the Pueblo or any officer or employee of the Pueblo with respect to any matter addressed by this Liquor Code, shall be brought in the Tribal Court of the Pueblo, which court shall have exclusive jurisdiction thereof.</P>
                <P>Enacted by Res. No. 01-15, May 8, 2001; approved by Sec'y, June 1, 2001.</P>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06580 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4337-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE INTERIOR</AGENCY>
                <SUBAGY>Bureau of Indian Affairs</SUBAGY>
                <DEPDOC>[256A2100DD/AAKE200000/A0A501010.000000]</DEPDOC>
                <SUBJECT>Indian Gaming; Extension of Tribal-State Class III Gaming Compact in Nevada</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Bureau of Indian Affairs, Interior.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>This notice announces the extension of the class III gaming compact between Pyramid Lake Paiute Tribe of the Pyramid Lake Reservation and State of Nevada.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The extension takes effect on April 17, 2025.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mr. Philip Bristol, (A)Director, Office of Indian Gaming, Office of the Assistant Secretary—Indian Affairs, Washington, DC 20240, 
                        <E T="03">IndianGaming@bia.gov;</E>
                         (202) 219-4066.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    An extension to an existing Tribal-State class III gaming compact does not require approval by the Secretary of the Interior if the extension does not modify any other terms of the compact. 25 CFR 293.5. The Pyramid Lake Paiute Tribe of the Pyramid Lake Reservation and State of Nevada have reached an agreement to extend the expiration date of their existing class III gaming compact to February 23, 2027. This publication 
                    <PRTPAGE P="16172"/>
                    provides notice of the new expiration date of the compacts.
                </P>
                <SIG>
                    <NAME>Scott J. Davis,</NAME>
                    <TITLE>Senior Advisor to the Secretary of the Interior, Exercising the delegated Authority of the Assistant Secretary—Indian Affairs.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06606 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4337-15-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">INTERNATIONAL TRADE COMMISSION</AGENCY>
                <SUBJECT>Notice of Receipt of Complaint; Solicitation of Comments Relating to the Public Interest</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>U.S. International Trade Commission.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Notice is hereby given that the U.S. International Trade Commission has received a complaint entitled 
                        <E T="03">Certain Video-Capable Laptop, Desktop Computers, Handheld Computers, Tablets, Televisions, Projectors, and Components and Modules Thereof, DN 3821;</E>
                         the Commission is soliciting comments on any public interest issues raised by the complaint or complainant's filing pursuant to the Commission's Rules of Practice and Procedure.
                    </P>
                </SUM>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Lisa R. Barton, Secretary to the Commission, U.S. International Trade Commission, 500 E Street SW, Washington, DC 20436, telephone (202) 205-2000. The public version of the complaint can be accessed on the Commission's Electronic Document Information System (EDIS) at 
                        <E T="03">https://edis.usitc.gov.</E>
                         For help accessing EDIS, please email 
                        <E T="03">EDIS3Help@usitc.gov.</E>
                    </P>
                    <P>
                        General information concerning the Commission may also be obtained by accessing its internet server at United States International Trade Commission (USITC) at 
                        <E T="03">https://www.usitc.gov.</E>
                         The public record for this investigation may be viewed on the Commission's Electronic Document Information System (EDIS) at 
                        <E T="03">https://edis.usitc.gov.</E>
                         Hearing-impaired persons are advised that information on this matter can be obtained by contacting the Commission's TDD terminal on (202) 205-1810.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The Commission has received a complaint and a submission pursuant to § 210.8(b) of the Commission's Rules of Practice and Procedure filed on behalf of Nokia Technologies Oy, and Nokia Corporation on April 11, 2025. The complaint alleges violations of section 337 of the Tariff Act of 1930 (19 U.S.C. 1337) in the importation into the United States, the sale for importation, and the sale within the United States after importation of certain video-capable laptop, desktop computers, handheld computers, tablets, televisions, projectors, and components and modules thereof. The complaint names as respondents: Acer America Corporation of San Jose, CA; Acer Inc. of Taiwan; ASUSTeK Computer Inc. of Taiwan; ASUS Computer International of Fremont, CA; Hisense Co., Ltd. of China; Hisense USA Corporation of Suwanee, GA; and Hisense Electronics Manufacturing Company of America Corporation of Suwanee, GA. The complainant requests that the Commission issue a limited exclusion order, cease and desist orders, and impose a bond upon respondents' alleged infringing articles during the 60-day Presidential review period pursuant to 19 U.S.C. 1337(j).</P>
                <P>Proposed respondents, other interested parties, members of the public, and interested government agencies are invited to file comments on any public interest issues raised by the complaint or § 210.8(b) filing. Comments should address whether issuance of the relief specifically requested by the complainant in this investigation would affect the public health and welfare in the United States, competitive conditions in the United States economy, the production of like or directly competitive articles in the United States, or United States consumers.</P>
                <P>In particular, the Commission is interested in comments that:</P>
                <P>(i) explain how the articles potentially subject to the requested remedial orders are used in the United States;</P>
                <P>(ii) identify any public health, safety, or welfare concerns in the United States relating to the requested remedial orders;</P>
                <P>(iii) identify like or directly competitive articles that complainant, its licensees, or third parties make in the United States which could replace the subject articles if they were to be excluded;</P>
                <P>(iv) indicate whether complainant, complainant's licensees, and/or third party suppliers have the capacity to replace the volume of articles potentially subject to the requested exclusion order and/or a cease and desist order within a commercially reasonable time; and</P>
                <P>(v) explain how the requested remedial orders would impact United States consumers.</P>
                <P>
                    Written submissions on the public interest must be filed no later than by close of business, eight calendar days after the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                    . There will be further opportunities for comment on the public interest after the issuance of any final initial determination in this investigation. Any written submissions on other issues must also be filed by no later than the close of business, eight calendar days after publication of this notice in the 
                    <E T="04">Federal Register</E>
                    . Complainant may file replies to any written submissions no later than three calendar days after the date on which any initial submissions were due, notwithstanding § 201.14(a) of the Commission's Rules of Practice and Procedure. No other submissions will be accepted, unless requested by the Commission. Any submissions and replies filed in response to this Notice are limited to five (5) pages in length, inclusive of attachments.
                </P>
                <P>
                    Persons filing written submissions must file the original document electronically on or before the deadlines stated above. Submissions should refer to the docket number (“Docket No. 3821”) in a prominent place on the cover page and/or the first page. (
                    <E T="03">See</E>
                     Handbook for Electronic Filing Procedures, Electronic Filing Procedures 
                    <SU>1</SU>
                    <FTREF/>
                    ). Please note the Secretary's Office will accept only electronic filings during this time. Filings must be made through the Commission's Electronic Document Information System (EDIS, 
                    <E T="03">https://edis.usitc.gov.</E>
                    ) No in-person paper-based filings or paper copies of any electronic filings will be accepted until further notice. Persons with questions regarding filing should contact the Secretary at 
                    <E T="03">EDIS3Help@usitc.gov.</E>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         Handbook for Electronic Filing Procedures: 
                        <E T="03">https://www.usitc.gov/documents/handbook_on_filing_procedures.pdf.</E>
                    </P>
                </FTNT>
                <P>
                    Any person desiring to submit a document to the Commission in confidence must request confidential treatment. All such requests should be directed to the Secretary to the Commission and must include a full statement of the reasons why the Commission should grant such treatment. 
                    <E T="03">See</E>
                     19 CFR 201.6. Documents for which confidential treatment by the Commission is properly sought will be treated accordingly. All information, including confidential business information and documents for which confidential treatment is properly sought, submitted to the Commission for purposes of this Investigation may be disclosed to and used: (i) by the Commission, its employees and Offices, and contract personnel (a) for developing or maintaining the records of this or a related proceeding, or (b) in 
                    <PRTPAGE P="16173"/>
                    internal investigations, audits, reviews, and evaluations relating to the programs, personnel, and operations of the Commission including under 5 U.S.C. Appendix 3; or (ii) by U.S. government employees and contract personnel,
                    <SU>2</SU>
                    <FTREF/>
                     solely for cybersecurity purposes. All nonconfidential written submissions will be available for public inspection at the Office of the Secretary and on EDIS.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         All contract personnel will sign appropriate nondisclosure agreements.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         Electronic Document Information System (EDIS): 
                        <E T="03">https://edis.usitc.gov.</E>
                    </P>
                </FTNT>
                <P>This action is taken under the authority of section 337 of the Tariff Act of 1930, as amended (19 U.S.C. 1337), and of §§ 201.10 and 210.8(c) of the Commission's Rules of Practice and Procedure (19 CFR 201.10, 210.8(c)).</P>
                <SIG>
                    <P>By order of the Commission.</P>
                    <DATED>Issued: April 11, 2025.</DATED>
                    <NAME>Lisa Barton,</NAME>
                    <TITLE>Secretary to the Commission.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06559 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7020-02-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">JUDICIAL CONFERENCE OF THE UNITED STATES</AGENCY>
                <SUBJECT>Advisory Committee on Bankruptcy Rules; Meeting of the Judicial Conference</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Judicial Conference of the United States.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Advisory Committee on Bankruptcy Rules; notice of open meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Advisory Committee on Bankruptcy Rules will hold an in-person meeting in hybrid format with remote attendance options on September 25, 2025 in Washington, DC. The meeting is open to the public for observation but not participation. Please see the Supplementary Information section in this notice for instructions on observing the meeting.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>September 25, 2025 (meeting date) and September 18, 2025 (registration deadline for in-person observation).</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        An agenda and supporting materials will be posted at least 7 days in advance of the meeting at: 
                        <E T="03">https://www.uscourts.gov/forms-rules/records-rules-committees/agenda-books.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rules Committee Staff, Administrative Office of the U.S. Courts, Thurgood Marshall Federal Judiciary Building, One Columbus Circle NE, Suite 7-300, Washington, DC 20544, Phone (202) 502-1820, 
                        <E T="03">RulesCommittee_Secretary@ao.uscourts.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>To observe the meeting in person, individuals must contact the office listed above by 5 p.m. (eastern time) on September 18, 2025. After this deadline, only remote observation is permitted. Remote registration is available until the meeting date, provided it is completed before the projected end time.</P>
                <EXTRACT>
                    <FP>(Authority: 28 U.S.C. 2073.)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>Shelly L. Cox,</NAME>
                    <TITLE>Management Analyst, Rules Committee Staff.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06515 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 2210-55-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">JUDICIAL CONFERENCE OF THE UNITED STATES</AGENCY>
                <SUBJECT>Committee on Rules of Practice and Procedure; Meeting of the Judicial Conference</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Judicial Conference of the United States.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Committee on Rules of Practice and Procedure; notice of open meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Committee on Rules of Practice and Procedure will hold an in-person meeting in hybrid format with remote attendance options on June 10, 2025 in Washington, DC. The meeting is open to the public for observation but not participation. Please see the Supplementary Information section in this notice for instructions on observing the meeting.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>June 10, 2025 (meeting date) and June 3, 2025 (registration deadline for in-person observation).</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        An agenda and supporting materials will be posted at least 7 days in advance of the meeting at: 
                        <E T="03">https://www.uscourts.gov/forms-rules/records-rules-committees/agenda-books.</E>
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Rules Committee Staff, Administrative Office of the U.S. Courts, Thurgood Marshall Federal Judiciary Building, One Columbus Circle NE, Suite 7-300, Washington, DC 20544, Phone (202) 502-1820, 
                        <E T="03">RulesCommittee_Secretary@ao.uscourts.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>To observe the meeting in person, individuals must contact the office listed above by 5 p.m. (eastern time) on June 3, 2025. After this deadline, only remote observation is permitted. Remote registration is available until the meeting date, provided it is completed before the projected end time.</P>
                <EXTRACT>
                    <FP>(Authority: 28 U.S.C. 2073.)</FP>
                </EXTRACT>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>Shelly L. Cox,</NAME>
                    <TITLE>Management Analyst, Rules Committee Staff.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06521 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 2210-55-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF JUSTICE</AGENCY>
                <DEPDOC>[CPCLO Order No. 01-2025]</DEPDOC>
                <SUBJECT>Privacy Act of 1974; Systems of Records</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Executive Office for Immigration Review, United States Department of Justice.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of a modified system of records.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Pursuant to the Privacy Act of 1974 and Office of Management and Budget (OMB) Circular No. A-108, notice is hereby given that the Executive Office for Immigration Review (EOIR), a component within the United States Department of Justice (DOJ or Department), proposes to modify a system of records notice titled Roster of Organizations and their Accredited Representatives Recognized by the Board of Immigration Appeals, JUSTICE/BIA-002. In 2016, EOIR issued a final rule amending the regulations governing the requirements and procedures for the recognition of organizations and the accreditation of those organizations' representatives to represent persons in proceedings before EOIR and the Department of Homeland Security (DHS). Those regulatory amendments transferred the administration of the Recognition and Accreditation (R&amp;A) Program within EOIR from the Board of Immigration Appeals (Board) to the Office of Legal Access Programs (OLAP). In 2019, the R&amp;A Program was transferred by regulation to the Office of Policy (OP), the part of EOIR that oversees OLAP. EOIR proposes to modify JUSTICE/BIA-002 and to change the system number to JUSTICE/EOIR-004 to reflect the transfer of the R&amp;A Program to OP. The last publication of the complete system of records notice was in 1980, prior to the issuance of OMB A-108. As such, EOIR is re-publishing the System of Records Notice for this system, in full. Additionally, the agency's Access EOIR initiative gave rise to the modernization of the Recognition and Accreditation Program application process through the development of the Recognition and Accreditation Access (RAA) system allowing prospective applicants to apply online for recognition or accreditation and online account management of an approved 
                        <PRTPAGE P="16174"/>
                        organization. Modified JUSTICE/EOIR-004 captures this modernization effort.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>In accordance with 5 U.S.C. 552a(e)(4) and (11), this notice is applicable upon publication, subject to a 30-day period in which to comment on the routine uses, described below. Therefore, please submit any comments by May 19, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The public, OMB, and Congress are invited to submit any comments: by mail to the United States Department of Justice, Office of Privacy and Civil Liberties, ATTN: Privacy Analyst, Two Constitution Square, 145 N St. NE, Suite 8W-300, Washington, DC 20530; by facsimile at 202-307-0693; or by email at 
                        <E T="03">privacy.compliance@usdoj.gov.</E>
                         To ensure proper handling, please reference the above CPCLO Order No. on your correspondence.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Alexander Y. Hartman, Senior Associate General Counsel and Senior Component Official for Privacy, Office of the General Counsel; Executive Office for Immigration Review, 5107 Leesburg Pike, Suite 2600, Falls Church, VA 22041, telephone: (703) 305-0470; 
                        <E T="03">EOIR.Privacy.Intake@usdoj.gov;</E>
                         Sarah Flinn, Acting Assistant Director, Office of Policy, Executive Office for Immigration Review, 5107 Leesburg Pike, Suite 2500, Falls Church, VA 22041, telephone: (703) 305-0289; 
                        <E T="03">sarah.m.flinn@usdoj.gov.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The DOJ is modifying this system of records, Recognition and Accreditation Program Records, JUSTICE/EOIR-004, as a replacement for the prior system of records, entitled Roster of Organizations and Their Accredited Representatives Recognized by the Board of Immigration Appeals, JUSTICE/BIA-002, (45 FR 75908), rescinded on March 31, 2025, in part because the Board is no longer responsible for overseeing and maintaining the R&amp;A Program and in part due to the modernization of the R&amp;A Program permitting an online application process and online account management for an approved organization through the RAA system. Established pursuant to 8 CFR 1292.1(a)(4), the R&amp;A Program aims to increase the availability of competent legal immigration representation for low-income and indigent aliens by recognizing non-profit, federally tax-exempt organizations and accrediting their non-attorney representatives. The R&amp;A Program recognizes eligible organizations to provide representation through non-attorney Accredited Representatives who appear on behalf of clients before the Immigration Courts, the Board, and DHS, or DHS alone. 8 CFR 1292.11. Each organization must designate an Authorized Officer to act on behalf of the organization in recognition and accreditation matters. 
                    <E T="03">Id.</E>
                     Pursuant to 8 CFR 1292.11-.13, OP is presently responsible for recognizing organizations and accrediting their representatives. OP maintains the system of records, which consists of (1) a roster of non-profit religious, charitable, social service, and similar organizations and their Accredited Representatives; (2) applications and related documents submitted by such organizations for recognition and accreditation; (3) documents generated by OP in the course of reviewing such applications, including determinations approving or disapproving recognition and accreditation requests as well as determinations terminating recognition or accreditation status; and (4) documents obtained by OP from external sources in the course of reviewing such applications, including recommendations from EOIR's Office of Security, recommendations or complaints received from U.S. Citizenship and Immigration Services (USCIS), as well as complaints received from the public about specific organizations or representatives. On January 18, 2017, control of the R&amp;A Program and its attendant responsibilities of recognizing organizations and accrediting their representatives was transferred from the Board to OLAP. 
                    <E T="03">See</E>
                     81 FR 92346 (Dec. 19, 2016). In 2019, such control transferred from OLAP to OP. 
                    <E T="03">See</E>
                     84 FR 44537 (Aug. 26, 2019). Accordingly, the relevant records in the Board system of records have been transferred to OP.
                </P>
                <P>
                    In furtherance of the agency's Access EOIR initiative, OP is instituting an updated and streamlined electronic management and storage system for R&amp;A Program records. The new system will improve efficiencies, accountability, and accuracy in OP's review of applications for recognition and accreditation and for the management of the R&amp;A Program. The system is a full-scope computer-based program that will fully automate the R&amp;A Program application process. Internally, the system will shift all processing of the R&amp;A Program applications to the automated system, which will include processes that will require the verification of the presence and sufficiency of all documentation necessary to demonstrate an applicant's or organization's eligibility for admittance into the Program. Externally through the RAA system, the system will allow applicants and organizations to fully submit all applications for recognition and accreditation electronically. On behalf of DHS, USCIS will have the ability to upload, save, edit, digitally sign, and submit documents online through the system, as well as view application documents received by EOIR. 
                    <E T="03">See https://getaccredited.eoir.justice.gov/login.</E>
                     Pursuant to the regulations, recognition and accreditation applications must be served on USCIS, and USCIS is afforded an opportunity to comment on the application prior to EOIR's final determination. 
                    <E T="03">See</E>
                     8 CFR 1292.13 
                    <E T="03">et seq.</E>
                     Lastly, OP will have the ability to issue determinations through the system, send and receive notifications and periodic reminders, and run reports based on data in the system's different data fields.
                </P>
                <P>In accordance with 5 U.S.C. 552a(r), the Department has provided a report to OMB and Congress on this notice of a modified system of records.</P>
                <SIG>
                    <DATED>Dated: March 31, 2025.</DATED>
                    <NAME>Peter Winn,</NAME>
                    <TITLE>Acting Chief Privacy and Civil Liberties Officer, United States Department of Justice.</TITLE>
                </SIG>
                <PRIACT>
                    <HD SOURCE="HD2">JUSTICE/EOIR-004</HD>
                    <HD SOURCE="HD2">SYSTEM NAME AND NUMBER:</HD>
                    <P>Recognition and Accreditation Program Records, JUSTICE/EOIR-004.</P>
                    <HD SOURCE="HD2">SECURITY CLASSIFICATION:</HD>
                    <P>Unclassified.</P>
                    <HD SOURCE="HD2">SYSTEM LOCATION:</HD>
                    <P>Executive Office for Immigration Review, Department of Justice, 5107 Leesburg Pike, Suite 2500, Falls Church, VA 22041.</P>
                    <HD SOURCE="HD2">SYSTEM MANAGER(S):</HD>
                    <P>EOIR Chief Information Officer, Office of Information Technology, 5107 Leesburg Pike, Suite 1900, Falls Church, VA 22041, and EOIR Office of Policy, 5107 Leesburg Pike, Suite 2500, Falls Church, VA 22041.</P>
                    <HD SOURCE="HD2">AUTHORITY FOR MAINTENANCE OF THE SYSTEM:</HD>
                    <P>This system is established and maintained under the authority granted to the Attorney General pursuant to 8 U.S.C. 1103 and 1362. Such authority has been delegated to EOIR by 8 CFR part 1292.</P>
                    <HD SOURCE="HD2">PURPOSE(S) OF THE SYSTEM:</HD>
                    <P>
                        The primary mission of the Executive Office for Immigration Review (EOIR) at the Department of Justice (Department) is to adjudicate immigration cases by fairly, expeditiously, and uniformly interpreting and administering the Nation's immigration laws. Under delegated authority from the Attorney 
                        <PRTPAGE P="16175"/>
                        General, EOIR conducts immigration court proceedings, appellate reviews, and administrative hearings. EOIR created the Recognition and Accreditation (R&amp;A) Program to increase the availability of competent legal immigration representation for low-income and indigent aliens by recognizing non-profit, federally tax-exempt organizations and accrediting their non-attorney representatives who appear on behalf of clients before EOIR and/or Department of Homeland Security (DHS) in immigration proceedings. 8 CFR 1292.1(a)(4), 1292.11. The purpose of this system is to facilitate EOIR's administration of the R&amp;A Program. The system consists of the complete roster of non-profit religious, charitable, social service, and similar organizations and their Accredited Representatives; applications and related documents submitted by such organizations for recognition and accreditation; documents generated by EOIR in the course of reviewing such applications, including determinations approving or disapproving recognition and accreditation requests, as well as determinations terminating recognition or accreditation status; and documents obtained by EOIR from external sources in the course of reviewing such applications, including recommendations or complaints received from the public or U.S. Citizenship and Immigration Services (USCIS) about specific organizations or representatives. Such records are necessary to administer the R&amp;A Program according to regulation. Therefore, the scope of the modified system of records, as proposed, is commensurate with the purpose of the system as described above.
                    </P>
                    <HD SOURCE="HD2">CATEGORIES OF INDIVIDUALS COVERED BY THE SYSTEM:</HD>
                    <P>The system includes information pertaining to Authorized Officers and other persons associated in an official capacity with a Recognized Organization or non-profit religious charitable, social service, and similar organizations seeking recognition, and persons on whose behalf an organization is seeking, has received, or has been denied accreditation.</P>
                    <HD SOURCE="HD2">CATEGORIES OF RECORDS IN THE SYSTEM:</HD>
                    <P>The system consists of (1) paper and electronic applications and supporting documentation, which include organization mission statements, budget information, organizational and fee structures, tax records, and documents regarding staff members, submitted by non-profit religious charitable, social service, and similar organizations seeking their own recognition as well as the accreditation of their representatives; (2) documents generated by OP in the course of reviewing recognition and accreditation applications, including determinations approving or disapproving recognition to such organizations and/or accreditation of their representatives, as well as terminations of recognized organizations and accredited representatives; (3) an electronic database containing information provided in the applications and received in the course of reviewing the applications for recognition and accreditation; and (4) a roster of the Recognized Organizations and their Accredited Representatives. This system may include, among other things, the following information: the organizations' email addresses, fax numbers, and websites; names, email addresses, employment addresses, and dates of birth for individuals seeking or who have sought accreditation and Authorized Officers; letters of recommendation from organizations and individuals; DHS recommendation letters and investigation documents; background investigation information for those seeking accreditation; and any criminal, civil, and investigative history of the organizations or representatives acquired by OP during its review of initial or renewal applications for accreditation or recognition.</P>
                    <HD SOURCE="HD2">RECORD SOURCE CATEGORIES:</HD>
                    <P>Records contained within the system are submitted by (1) the organizations seeking their own recognition or the accreditation of their representatives and (2) USCIS when recommending approval or disapproval of a recognition or accreditation application. The system also contains records generated by OP in the course of reviewing recognition and accreditation applications, including determinations approving or disapproving recognition to such organizations and/or accreditation of their representatives, including criminal, civil, and investigative history of the organizations or representatives acquired by OP. Sources of information contained in this system are supplied by the organization seeking recognition, individuals seeking accreditation, and reports and/or records supplied by EOIR.</P>
                    <HD SOURCE="HD2">ROUTINE USES OF RECORDS MAINTAINED IN THE SYSTEM, INCLUDING CATEGORIES OF USERS AND PURPOSES OF SUCH USES:</HD>
                    <P>In addition to those disclosures generally permitted under 5 U.S.C. 552a(b), all or a portion of the records of information contained in this system of records may be disclosed as a routine use pursuant to 5 U.S.C. 552a(b)(3) under the circumstances or for the purposes described below, to the extent such disclosures are compatible with the purposes for which the information was collected:</P>
                    <P>(1) Copies of determinations approving or disapproving applications for recognition may be provided to the organization seeking recognition. Copies of determinations approving or disapproving applications for accreditation of an individual may be provided to the organization or the individual the organization seeks to accredit. Copies may also be provided to the Department of Homeland Security, U.S. Citizenship and Immigration Services.</P>
                    <P>(2) To Federal agencies involved in statistical analysis of data, and publication and/or reporting of aggregated or de-identified information designed to improve the efficiency and effectiveness of immigration proceedings at those agencies or to better meet EOIR's mission of adjudicating cases fairly and expeditiously, and uniformly interpreting and administering the Nation's immigration laws.</P>
                    <P>(3) To contacts listed on applications for recognition or accreditation, and associated forms, for the purpose of evaluating and verifying the applicant organization's data and proposed representative's claimed qualifications, experience, credentials, and eligibility.</P>
                    <P>(4) Information about the recognition or accreditation status of an organization or representative may be made public for awareness of which or how many organizations and individuals are currently recognized and accredited by EOIR, with the exception of information otherwise afforded confidential treatment by law or regulation.</P>
                    <P>(5) Where a record, either alone or in conjunction with other information, indicates a violation or potential violation of law—criminal, civil, or regulatory in nature—the relevant records may be referred to the appropriate federal, state, local, territorial, tribal, or foreign law enforcement authority or other appropriate entity charged with the responsibility for investigating or prosecuting such violation or charged with enforcing or implementing such law.</P>
                    <P>
                        (6) To contractors, grantees, experts, consultants, students, and others performing or working on a contract, service, grant, cooperative agreement, or other assignment for the Federal 
                        <PRTPAGE P="16176"/>
                        Government, when necessary to accomplish an agency function related to this system of records.
                    </P>
                    <P>(7) To designated officers and employees of state, local, territorial, or tribal law enforcement or detention agencies in connection with the hiring or continued employment of an employee or contractor, where the employee or contractor would occupy or occupies a position of public trust as a law enforcement officer or detention officer having direct contact with the public or with prisoners or detainees, to the extent that the information is relevant and necessary to the recipient agency's decision.</P>
                    <P>(8) To appropriate officials and employees of a Federal agency or entity that requires information relevant to a decision concerning the hiring, appointment, or retention of an employee; the assignment, detail, or deployment of an employee; the issuance, renewal, suspension, or revocation of a security clearance; the execution of a security or suitability investigation; the letting of a contract, or the issuance of a grant or benefit.</P>
                    <P>(9) To Federal, state, local, territorial, tribal, foreign, or international licensing agencies or associations which require information concerning the suitability or eligibility of an individual for a license or permit.</P>
                    <P>(10) To a Member of Congress or staff acting upon the Member's behalf when the Member or staff requests the information on behalf of, and at the request of, the individual who is the subject of the record.</P>
                    <P>(11) To the National Archives and Records Administration for purposes of records management inspections conducted under the authority of 44 U.S.C. 2904 and 2906.</P>
                    <P>(12) To appropriate agencies, entities, and persons when (1) the Department suspects or has confirmed that there has been a breach of the system of records; (2) the Department has determined that as a result of the suspected or confirmed breach there is a risk of harm to individuals, the Department (including its information systems, programs, and operations), the Federal Government, or national security; and (3) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with the Department's efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm.</P>
                    <P>(13) To another Federal agency or Federal entity, when the Department determines that information from this system of records is reasonably necessary to assist the recipient agency or entity in (1) responding to a suspected or confirmed breach, or (2) preventing, minimizing, or remedying the risk of harm to individuals, the recipient agency or entity (including its information systems, programs, and operations), the Federal Government, or national security, resulting from a suspected or confirmed breach.</P>
                    <P>(14) To any agency, organization, or individual for the purpose of performing authorized audit or oversight operations of EOIR and meeting related reporting requirements.</P>
                    <P>(15) To such recipients and under such circumstances and procedures as are mandated by Federal statute or treaty.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR STORAGE OF RECORDS:</HD>
                    <P>OP currently stores all relevant information from applications and supporting documents in a mail log, a tracking log, and a new electronic management and storage system that tracks the status, history, and complete lifecycle of each application OP receives. The system also produces reports, collectively called the R&amp;A Rosters, which are lists of all currently approved Recognized Organizations and Accredited Representatives.</P>
                    <P>
                        Applications for recognition and accreditation may be made using the fillable portable document files (pdfs) available on EOIR's website and submitted with the necessary supporting documentation by regular mail or email to the R&amp;A Program. Applicants will also be able to use the new system to submit applications electronically through the public facing web-based application RAA system located at 
                        <E T="03">https://getaccredited.eoir.justice.gov/login.</E>
                         Documents received by regular mail are scanned and uploaded to the system. The new system will allow OP to import data from the network drive, index, and format the documents for optimal character recognition, making the information and documentation available in the system in a searchable electronic format. The capability will include input of data and metadata to aid searching the documents.
                    </P>
                    <P>
                        OP also receives physical and electronic correspondence from USCIS and members of the public regarding organizations and representatives. That correspondence is also logged in the R&amp;A Program's electronic system. The new electronic system will allow USCIS to submit and store correspondence for use through the RAA system located at 
                        <E T="03">https://getaccredited.eoir.justice.gov/login.</E>
                    </P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETRIEVAL OF RECORDS:</HD>
                    <P>Authorized internal users may retrieve paper records by the name of the organization that submitted an application or by a unique tracking number internally assigned by the R&amp;A Program to the particular organization for purposes of file organization and record keeping. Authorized internal users may retrieve electronic records by the name of the organization that submitted an application, the R&amp;A case number assigned to each organization application, or the name of the person on whose behalf an accreditation application was submitted.</P>
                    <HD SOURCE="HD2">POLICIES AND PRACTICES FOR RETENTION AND DISPOSAL OF RECORDS:</HD>
                    <P>The retention period for these records under the Federal Records Act is currently under development. Until the records retention schedule is completed, the records in the system will not be destroyed.</P>
                    <HD SOURCE="HD2">ADMINISTRATIVE, TECHNICAL, AND PHYSICAL SAFEGUARDS:</HD>
                    <P>Information in this system is safeguarded in accordance with appropriate laws, rules, and policies, including the Component's automated systems security and access policies, and access to such information is limited to Department personnel, contractors, and other personnel who have an official need for access in order to perform their duties. Physical records are maintained in a restricted area and directly accessed only by authorized personnel. Electronic records are accessed only by authorized personnel with accounts on the Component's computer network. Additionally, direct access to certain information may be restricted depending on a user's role and responsibility within the system. Physical records are safeguarded in accordance with appropriate laws, rules, and policies based on the classification and handling restrictions of the particular document.</P>
                    <HD SOURCE="HD2">RECORD ACCESS PROCEDURES:</HD>
                    <P>
                        All requests for access to records must be in writing and should be addressed to the EOIR Office of the General Counsel, 5107 Leesburg Pike, Suite 2600, Falls Church, VA 22041, 
                        <E T="03">EOIR.FOIARequests@usdoj.gov.</E>
                         The envelope and letter should be clearly marked “Privacy Act Access Request.” The request must describe the records sought in sufficient detail to enable Department personnel to locate them with a reasonable amount of effort. The request must include a general description of the records sought and 
                        <PRTPAGE P="16177"/>
                        must include the requester's full name, current address, and place and date of birth. The request must be signed and either notarized or submitted under penalty of perjury.
                    </P>
                    <P>
                        Although no specific form is required, you may obtain forms for this purpose from the FOIA/Privacy Act Mail Referral Unit, United States Department of Justice, 950 Pennsylvania Avenue NW, Washington, DC 20530, or on the Department of Justice website at 
                        <E T="03">http://www.justice.gov/oip/oip-request-html. See also</E>
                         Form EOIR-59, Certification and Release of Records, available at 
                        <E T="03">https://www.justice.gov/eoir/eoir-forms.</E>
                    </P>
                    <P>More information regarding the Department's procedures for accessing records in accordance with the Privacy Act can be found at 28 CFR part 16 subpart D, “Protection of Privacy and Access to Individual Records under the Privacy Act of 1974.”</P>
                    <HD SOURCE="HD2">CONTESTING RECORD PROCEDURES:</HD>
                    <P>The procedures for contesting or amending information contained in this system of records is governed by 8 CFR part 1292. The procedures require that organizations seeking accreditation of their representatives be notified of adverse information and be given an opportunity to rebut such information.</P>
                    <HD SOURCE="HD2">NOTIFICATION PROCEDURES:</HD>
                    <P>Individuals receive notice pursuant to 5 U.S.C. 552a(e)(3) when they complete their application on the website.</P>
                    <HD SOURCE="HD2">EXEMPTIONS PROMULGATED FOR THE SYSTEM:</HD>
                    <P>None.</P>
                    <HD SOURCE="HD2">HISTORY:</HD>
                    <P>This system was previously part of JUSTICE/BIA-002, Roster of Organizations and their Accredited Representatives Recognized by the Board of Immigration Appeals, 45 FR 75908 (Nov. 17, 1980); 66 FR 8425 (Jan. 31, 2001); 87 FR 24147 (May 25, 2017) (rescinding 74 FR 3410 (Jan. 25, 2007)).</P>
                </PRIACT>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-05846 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4410-30-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES</AGENCY>
                <SUBAGY>National Endowment for the Arts</SUBAGY>
                <SUBJECT>National Council on the Arts 215th Meeting</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>National Endowment for the Arts, National Foundation on the Arts and Humanities.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of meeting.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>
                        Pursuant to the Federal Advisory Committee Act, as amended, notice is hereby given that a meeting of the National Council on the Arts will be held open to the public by videoconference. An additional session will be closed to the public for reasons stated in the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section in this document.
                    </P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        May 1, 2025. See the 
                        <E T="02">SUPPLEMENTARY INFORMATION</E>
                         section for meeting time. The meeting will occur in Eastern time and the ending time is approximate.
                    </P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        The National Endowment for the Arts, Constitution Center, 400 Seventh Street SW, Washington, DC 20560. This meeting will be held by videoconference. Public portions of the meeting will be webcast. Please see 
                        <E T="03">arts.gov</E>
                         for the most up-to-date information.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P> Liz Auclair, Office of Public Affairs, National Endowment for the Arts, Washington, DC 20506, at 202/682-5744.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>The meeting will take place on May 1, 2025.</P>
                <P>
                    <E T="03">Open Session:</E>
                     May 1, 2025; 2:00 p.m. to 3:00 p.m. Location: Videoconference. There will be a discussion of general agency business. This session will be held open to the public by videoconference. To view the webcasting of this session of the meeting, go to: 
                    <E T="03">https://www.arts.gov/.</E>
                     If you need special accommodations due to a disability, please contact Beth Bienvenu, Office of Accessibility, National Endowment for the Arts, Constitution Center, 400 7th St. SW, Washington, DC 20506, 202/682-5733, Voice/T.T.Y. 202/682-5496, at least seven (7) days prior to the meeting. If, in the course of the open session discussion, it becomes necessary for the Council to discuss non-public commercial or financial information of intrinsic value, the Council will go into closed session pursuant to subsection (c)(4) of the Government in the Sunshine Act, 5 U.S.C. 552b, and in accordance with the March 11, 2022, determination of the Chair. Additionally, discussion concerning purely personal information about individuals, such as personal biographical and salary data or medical information, may be conducted by the Council in closed session in accordance with subsection (c)(6) of 5 U.S.C. 552b.
                </P>
                <P>
                    <E T="03">Closed Session:</E>
                     May 1, 2025; 12:00 p.m. to 1:00 p.m. Location: Videoconference. This meeting session will be closed to the public for the aforementioned reasons.
                </P>
                <SIG>
                    <DATED>Dated: April 10, 2025.</DATED>
                    <NAME>David Travis,</NAME>
                    <TITLE>Specialist, Office of Guidelines and Panel Operations.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06398 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7537-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 4, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 687 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1288, K2025-1287.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06533 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 
                    <PRTPAGE P="16178"/>
                    3642 and 3632(b)(3), on April 7, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 695 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1297, K2025-1296.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06541 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 7, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 694 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1295, K2025-1294.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06540 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 4, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 686 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1287, K2025-1286.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06542 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 9, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 698 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1303, K2025-1301.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06545 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 4, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 688 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1281, K2025-1280.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06534 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 10, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 700 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1305, K2025-1306.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06547 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="16179"/>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 8, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 696 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1300, K2025-1298.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06543 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail Express, Priority Mail, and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean C. Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 3, 2025 it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail Express, Priority Mail &amp; USPS Ground Advantage® Contract 1385 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1284, K2025-1283.
                </P>
                <SIG>
                    <NAME>Sean C. Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06526 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 4, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 693 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1294, K2025-1293.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06539 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail Express, Priority Mail, and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean C. Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 8, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail Express, Priority Mail &amp; USPS Ground Advantage® Contract 1360 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1301, K2025-1299.
                </P>
                <SIG>
                    <NAME>Sean C. Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06528 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 3, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 684 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1285, K2025-1284.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06529 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <PRTPAGE P="16180"/>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 3, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 685 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1286, K2025-1285.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06532 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 10, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 699 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1304, K2025-1305.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06546 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 4, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 692 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1293, K2025-1292.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06538 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail Express, Priority Mail, and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean C. Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 11, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail Express, Priority Mail &amp; USPS Ground Advantage® Contract 1361 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1307, K2025-1308.
                </P>
                <SIG>
                    <NAME>Sean C. Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06531 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 4, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 691 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1292, K2025-1291.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06537 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail Express, Priority Mail, and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean C. Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 8, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail Express, Priority Mail &amp; USPS Ground Advantage® Contract 1359 to Competitive Product List.</E>
                     Documents are available at 
                    <PRTPAGE P="16181"/>
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1299, K2025-1297.
                </P>
                <SIG>
                    <NAME>Sean C. Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06527 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 4, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 689 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1290, K2025-1289.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06535 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 8, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 697 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1302, K2025-1300.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06544 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 10, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 701 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1306, K2025-1307.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06530 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">POSTAL SERVICE</AGENCY>
                <SUBJECT>Product Change—Priority Mail and USPS Ground Advantage® Negotiated Service Agreement</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>
                        Postal Service
                        <E T="51">TM</E>
                        .
                    </P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Postal Service gives notice of filing a request with the Postal Regulatory Commission to add a domestic shipping services contract to the list of Negotiated Service Agreements in the Mail Classification Schedule's Competitive Products List.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>
                        <E T="03">Date of required notice:</E>
                         April 17, 2025.
                    </P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Sean Robinson, 202-268-8405.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    The United States Postal Service® hereby gives notice that, pursuant to 39 U.S.C. 3642 and 3632(b)(3), on April 4, 2025, it filed with the Postal Regulatory Commission a 
                    <E T="03">USPS Request to Add Priority Mail &amp; USPS Ground Advantage® Contract 690 to Competitive Product List.</E>
                     Documents are available at 
                    <E T="03">www.prc.gov,</E>
                     Docket Nos. MC2025-1291, K2025-1290.
                </P>
                <SIG>
                    <NAME>Sean Robinson,</NAME>
                    <TITLE>Attorney, Corporate and Postal Business Law.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06536 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 7710-12-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102818; File No. SR-NYSEARCA-2025-32]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules 5.3-O, 5.4-O, and 6.8-O</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) 
                    <SU>1</SU>
                    <FTREF/>
                     of the Securities Exchange Act of 1934 (“Act”) 
                    <SU>2</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>3</SU>
                    <FTREF/>
                     notice is hereby given that, on April 9, 2025, NYSE Arca, Inc. (“NYSE Arca” 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 change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         15 U.S.C. 78a.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The Exchange proposes to amend Rules 5.3-O, 5.4-O, and 6.8-O to allow the Exchange to list and trade options on the iShares Ethereum Trust ETF and the Fidelity Ethereum Fund. The proposed rule change is available on the Exchange's website at 
                    <E T="03">www.nyse.com,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                    <PRTPAGE P="16182"/>
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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 those 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 parts of such statements.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Rule 5.3-O (Criteria for Underlying Securities), Rule 5.4-O (Withdrawal of Approval of Underlying Securities), and Rule 6.8-O (Position Limits) to allow the Exchange to list and trade options on the following exchange-traded products: the iShares Ethereum Trust ETF (“ETHA”) and the Fidelity Ethereum Fund (“FETH”) (each, an “Ether Fund” or collectively, the “Ether Funds”).
                    <SU>4</SU>
                    <FTREF/>
                     This is a competitive filing based on similar proposals submitted by Nasdaq ISE, LLC (“ISE”) and Cboe Exchange, Inc. (“Cboe”) and approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 5.3-O, Commentary .01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 102798 (April 9, 2025) (SR-ISE-2024-35) (approving the listing and trading of options on ETHA); 102797 (April 9, 2025) (SR-Cboe-2024-036) (approving the listing and trading of options on FETH) (collectively, the “Ether ETP Options Approval Orders”).
                    </P>
                </FTNT>
                <P>
                    Rule 5.3-O provides that, subject to certain other criteria set forth in the Rule,
                    <SU>6</SU>
                    <FTREF/>
                     securities deemed appropriate for options trading include Exchange-Traded Fund Shares (or ETFs) that represent certain types of interests 
                    <SU>7</SU>
                    <FTREF/>
                     and exchange-traded products (“ETPs”) structured as trusts that hold precious metals (which are deemed commodities).
                    <SU>8</SU>
                    <FTREF/>
                     Recently, the Exchange obtained rule authority from the Commission to list and trade options on specific funds that hold bitcoin (also deemed a commodity).
                    <SU>9</SU>
                    <FTREF/>
                     Like ETPs backed by precious metals and bitcoin (
                    <E T="03">i.e.,</E>
                     commodities), the Exchange proposes to allow options trading on the Ether Funds that hold ether—which is also deemed a commodity.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         To be eligible for options trading, ETFs and ETPs must satisfy the initial listing criteria set forth in Rule 5.3-O(g)(1) through (2).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Rule 5.3-O(g) permits options trading on ETFs that are traded on a national securities exchange and are defined as an “NMS stock” in Rule 600(b)(55)[sic] of Regulation NMS, that 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 indexes, equity caps, collars and floors, swap agreements, forward contracts, repurchase agreements and reverse purchase 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 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); interests in a trust or similar entity 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 and pays the beneficial owner interest and other distributions on deposited non-U.S. currency, if any, declared and paid by the trust (“Currency Trust Shares”); 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 Units”); or represents an interest in a registered investment company (“Investment Company”) organized as an open-end management investment company or similar entity, that invests in a portfolio of securities selected by the Investment Company's investment adviser consistent with the Investment Company's investment objectives and policies, which is issued in a specified aggregate minimum number in return for a deposit of a specified portfolio of securities and/or a cash amount with a value equal to the next determined net asset value (“NAV”), and when aggregated in the same specified minimum number, may be redeemed at a holder's request, which holder will be paid a specified portfolio of securities and/or cash with a value equal to the next determined NAV (“Managed Fund Share”); provided that all of the conditions listed in Rules 5.3-O and 5.4-O are met. 
                        <E T="03">See</E>
                         Rule 5.3-O(g)(i)-(iii) and (vii)
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Rule 5.3-O(g) permits the listing and trading of options on shares of the following trusts: SPDR Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the ETFS Silver Trust, the ETFS Gold Trust, ETFS Palladium Trust, or ETFS Platinum Trust. 
                        <E T="03">See</E>
                         Rule 5.3-O(g)(iv)-(vi) and (viii)-(ix).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 101713 (November 22, 2024), 89 FR 94839 (November 29, 2024) (SR-NYSEARCA-2024-101) (notice of immediately effective rule change to permit options trading on the Grayscale Bitcoin Trust (BTC) (“GBTC”), the Grayscale Bitcoin Mini Trust (BTC) (“BTC”), and the Bitwise Bitcoin ETF (“BITB”)). 
                        <E T="03">See also</E>
                         Rule 5.3-O, Commentary .01 (permitting options trading on certain bitcoin-backed ETPs, including GBTC, BTC, and BITB).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 5.3-O, Commentary .01 (permitting the Exchange to list and trade options on shares of ETHA and FETH pursuant to Rules 5.3-O and 5.4-O).
                    </P>
                </FTNT>
                <P>
                    The Ether Funds are structured as trusts that hold ether. Like ETFs and ETPs currently deemed appropriate for options trading, the investment objective of each Ether Fund trust is for its shares to reflect the performance of ether (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to ether without the complexities of ether delivery. Each Ether Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of ether and are designed to track ether or the performance of the price of ether and offer access to the ether market.
                    <SU>11</SU>
                    <FTREF/>
                     The Ether Funds provide investors with cost-efficient alternatives that allow a level of participation in the ether market through the securities market.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes each Ether Fund satisfies the Exchange's initial listing standards set forth in Rule 5.3-O(a).
                    <SU>12</SU>
                    <FTREF/>
                     The Exchange notes
                    <FTREF/>
                     that the Ether Funds also satisfy the
                    <FTREF/>
                     listing standard applied to ETFs traded on the Exchange that they be available for creation and redemption each business day as set forth in Rule 5.3-O(g)(1)(B).
                    <SU>13</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Rule 5.3-O(a) provides for guidelines to be used by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         Rule 5.3-O(g)(1)(B) requires that ETFs must be available for creation or redemption each business day from or through the issuer in cash or in kind at a price related to net asset value, and the issuer must be obligated to issue 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 5.3-O(a), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Rule 5.3-O(b). An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>
                    First, each of the Ether Funds satisfy the criteria and guidelines set forth in Rule 5.3-O. Pursuant to Rule 5.3-O(b), a security 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.
                    <SU>14</SU>
                     Each of the Ether Funds is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>15</SU>
                     The 
                    <PRTPAGE P="16183"/>
                    Exchange believes each Ether Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <P>The Ether Funds had the following number of shares outstanding and corresponding market capitalization.</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s50,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Shares
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">
                            Market
                            <LI>capitalization</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHA (as of 10/22/24)</ENT>
                        <ENT>57,440,000</ENT>
                        <ENT>1,160,000,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">FETH (as of 12/23/24)</ENT>
                        <ENT>41,700,000</ENT>
                        <ENT>1,433,229,000</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As shown above, each of the Ether Funds had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to the Exchange's rules. The Exchange believes this demonstrates that each Ether Fund is characterized by a substantial number of outstanding shares.</P>
                <P>Further, the below table contains information regarding the number of beneficial holders of the Ether Funds.</P>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s50,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Beneficial
                            <LI>holders</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHA (as of 12/19/24)</ENT>
                        <ENT>93,352</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">FETH (as of 11/26/24)</ENT>
                        <ENT>38,170</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As this table shows, each Ether Fund has significantly more than 2,000 beneficial holders (approximately 46 and 19 times more, respectively), which is the minimum number of holders the Exchange generally requires for corporate stock to list options on that stock pursuant to the Exchanges [sic] rules. Therefore, the Exchange believes the shares of each Ether Fund are widely held.</P>
                <P>The Exchange also believes that shares of the Ether Funds are actively traded. Both Funds began trading on July 23, 2024. Regarding ETHA, since the inception of trading through December 14, 2024, the average daily volume was 5,302,533 shares and the average notional volume for this period is $127,825,276.00. For FETH, since the inception of trading through December 23, 2024, the average daily volume was 115,589,047 shares and the average notional volume for this period is $33,864,193. Even though the Ether Funds have been trading for less than a year, the trading volume for each Ether Fund is substantially higher than 2,400,000 shares (roughly 2 and 48 times that amount), which is the minimum 12-month volume the Exchange generally requires for a security to list options on that security. The Exchange believes this data demonstrates each Ether Fund is characterized by a substantial number of outstanding shares that are actively traded.</P>
                <P>
                    In addition to satisfying the Exchange's initial listing standards, options on Ether Funds will be subject to the Exchange's continued listing standards as set forth in Rule 5.4-O(k).
                    <SU>16</SU>
                    <FTREF/>
                     Pursuant to Rule 5.4-O, the Exchange will not open for trading any additional series of option contracts covering a fund traded on the Exchange if such fund ceases to be an “NMS stock” or the fund is halted from trading on its primary market.
                    <SU>17</SU>
                    <FTREF/>
                     Additionally, options on funds traded on the Exchange may be subject to the suspension of opening transactions as follows: (1) the fund no longer meets the terms of Rule 5.4-O(b)(1)-(4); 
                    <SU>18</SU>
                    <FTREF/>
                     (2) following the initial twelve-month period beginning upon the commencement of trading of the fund, there are fewer than 50 record and/or beneficial holders of the fund for 30 or more consecutive trading days; (3) the value of the underlying commodity 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 on the Exchange inadvisable.
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         The Exchange proposes to modify Commentary .02 to Rule 5.4-O to specify that for purposes of the continued listing standards set forth in Rule 5.4-O(k), the Ether Funds will be deemed “Exchange-Traded Fund Shares” (or ETFs). 
                        <E T="03">See</E>
                         proposed Commentary .02 to Rule 5.4-O.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Rule 5.4-O(k).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         The Exchange notes that Rule 5.4-O(b)(4) is currently held as “Reserved.”
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Rule 5.4-O(k)(1)-(4).
                    </P>
                </FTNT>
                <P>
                    Options on each Ether Fund will be physically settled contracts with American-style exercise.
                    <SU>20</SU>
                    <FTREF/>
                     Consistent with Rule 6.4-O, which governs the opening of options series on a specific underlying security (including ETFs and ETPs), the Exchange will open at least one expiration month for options on each Ether Fund 
                    <SU>21</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on Ether Funds for trading on a weekly,
                    <SU>22</SU>
                    <FTREF/>
                     monthly,
                    <SU>23</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>24</SU>
                    <FTREF/>
                     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.
                    <SU>25</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Rule 6.5-O (Rights and Obligations of Holders and Writers), which provides that the rights and obligations of holders and writers of option contracts of any class of options dealt in on the Exchange shall be as set forth in the Rules of the Clearing Corporation. 
                        <E T="03">See also</E>
                         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: 
                        <E T="03">https://www.theocc.com/getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/occrules.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         The monthly expirations are subject to certain listing criteria for underlying securities described within Rule 5.3-O. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Rule 6.4-O(a), 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. New series of options on an individual stock may be added until the beginning of the month in which the options contract will expire. 
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .06. 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. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .07.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .09.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .08.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O(d).
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rule 6.4-O, Commentary .05(a), which governs strike prices of series of options on ETFs, the interval between strike prices of series of options on Ether Funds will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>26</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>27</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>28</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>29</SU>
                    <FTREF/>
                     and the $5 Strike 
                    <PRTPAGE P="16184"/>
                    Program.
                    <SU>30</SU>
                    <FTREF/>
                     Pursuant to Rule 6.72-O, where the price of a series of a Ether Fund 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.
                    <SU>31</SU>
                    <FTREF/>
                     Any and all new series of Ether Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 6.4-O and 6.72-O, as applicable. Further, the Exchange notes that Rule 4.16-O, which governs margin requirements applicable to the trading of all options on the Exchange, including options on ETFs and ETPs, will also apply to the trading of Ether Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Rule 6.4-O, Commentary .07 through .09, specifically set forth intervals between strike prices on Quarterly Options Series, Short Term Option Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .10.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         If options on any of the Ether Funds are eligible to participate in the Penny Interval Program, the minimum increment of $0.01 below $3.00 and $0.50 above $3.00 would apply. 
                        <E T="03">See</E>
                         Rule 6.72-O(a)(3). 
                        <E T="03">See also</E>
                         Rule 6.72A-O (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>
                    The Exchange may authorize for trading a FLEX option class on any equity security if it may authorize for trading a non-FLEX option class on that equity security pursuant to Rule 5.3-O, subject to specified exceptions.
                    <SU>32</SU>
                    <FTREF/>
                     At this time, the Exchange is not proposing to permit Ether Fund options to trade as FLEX options.
                    <SU>33</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         Rule 5.32-O(f)(1). 
                        <E T="03">See generally</E>
                         Section 4 (Flexible Exchange (“FLEX”) Options).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         Rule 5.32-O(f)(1) (providing that the Exchange may authorize FLEX trading of on any equity security that is eligible for non-FLEX trading “except those set forth in Commentary .01 to Rule 5.3-O,” 
                        <E T="03">i.e.,</E>
                         the Ether Funds). The Exchange may submit a subsequent rule filing that would permit the Exchange to authorize FLEX trading of Ether Fund options, which filing may propose changes to existing FLEX option position limits for such options as appropriate.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Position and Exercise Limits</HD>
                <P>
                    Position and exercise limits for options, including options on Ether Funds, are determined pursuant to Rules 6.8-O and 6.9-O, respectively. Position and exercise limits for options vary according to the number of outstanding shares and the trading volumes of the underlying security over the past six months, where the largest in capitalization and the most frequently traded funds 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 funds 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.
                    <SU>34</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">See</E>
                         Commentary .06(a)-(e) to Rule 6.8-O. For an option to be eligible for the 50,000-contract limit, the security underlying the option must have most recent six-month trading volume of at least 20,000,000 shares, or most recent six-month trading volume of at least 15,000,000 shares and at least 40,000,000 shares currently outstanding. For an option to be eligible for the 75,000-contract limit, the underlying security must have most recent six-month trading volume of at least 40,000,000 shares, or most recent six-month trading volume of at least 30,000,000 shares and at least 120,000,000 shares currently outstanding. For an option to be eligible for the 200,000-contract limit, the underlying security must have most recent six-month trading volume of at least 80,000,000 shares, or most recent six-month trading volume of at least 60,000,000 shares and at least 240,000,000 shares currently outstanding. For an option to be eligible for the 250,000-contract limit, the security underlying the option must have most recent six-month trading volume of at least 100,000,000 shares, or most recent six-month trading volume of at least 75,000,000 shares and at least 300,000,000 shares currently outstanding. The 25,000-contract position limit applies to options on underlying securities that do not qualify for a higher contract limit. 
                        <E T="03">See</E>
                         Commentary .06(c) to Rule 6.8-O. In addition, Commentary .06(f) to Rule 6.8-O establishes higher position limits for options on certain ETFs.
                    </P>
                </FTNT>
                <P>
                    Position limits are designed to limit the number of options contracts traded on the Exchange in an underlying security that an investor, acting alone or in concert with others directly or indirectly, may control. The purpose of position limits, which are set forth in Rule 6.8-O, is to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. Accordingly, position limits must balance concerns regarding mitigating potential manipulation and the cost of inhibiting potential hedging activity that investors may use for legitimate economic purposes. To achieve this balance, the Exchange proposes to set the position and exercise limits for the options on the Ether Funds at 25,000 contracts, a limit which has already been approved for options on ETPs that hold bitcoin.
                    <SU>35</SU>
                    <FTREF/>
                     Capping the position limit at 25,000 contracts, the lowest limit available in options, would address concerns related to manipulation and protection of investors as this number is conservative for the Ether Funds and therefore appropriate given their liquidity.
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 6.8-O, Commentary .06(f) (proposing a 25,000-contract position limit for the Ether Funds, the same limit that has been approved for bitcoin-backed ETPs as set forth in current Commentary .06(f)). The exercise limits for Ether Fund options will be the same as the position limits (
                        <E T="03">i.e.,</E>
                         25,000-contract). 
                        <E T="03">See</E>
                         Rule 6.9-O, Commentary .01 (providing that exercise limits will be “equivalent to the corresponding position limit for the same particular class of options as determined by Rule 6.8-O and Commentary thereto”).
                    </P>
                </FTNT>
                <P>
                    Based on the foregoing, the Exchange believes the proposal to list options on the Ether Funds with positions and exercise limits of 25,000 on the same side, the lowest position limit available in the options industry, is conservative and appropriate given the market capitalization, average daily volume, and high number of outstanding shares for each of the Ether Funds.
                    <SU>36</SU>
                    <FTREF/>
                     The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying Ether Funds as well as the ether market.
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         The Exchange may file a subsequent rule change to amend the position and exercise limit for options on any or all the Ether Funds based on additional data regarding trading activity, to continue to balance any concerns regarding manipulation. A higher position limit would allow institutional investors to utilize options on the Ether Funds for prudent risk management purposes.
                    </P>
                </FTNT>
                <P>As described herein, options on Ether Funds will trade in the same manner as any other ETF or ETP options on the Exchange, except that the Ether Funds will not be eligible for FLEX option trading. The Exchange Rules that currently apply to the listing and trading of options on the Exchange, including, for example, Rules that govern listing criteria, expiration and exercise prices, minimum increments, margin requirements, customer accounts and trading halt procedures will apply to the listing and trading of Ether Funds on the Exchange in the same manner as they apply to all other ETFs and ETPs that are listed and traded on the Exchange, including the precious metal-backed commodity ETPs already deemed appropriate for options trading on the Exchange. Further, as described above, Exchange Rules regarding position and exercise limits will likewise apply to options on the Ether Funds except that, as proposed, the position and exercise limits will be set at 25,000 on the same side.</P>
                <P>
                    The Exchange notes that options on Ether Funds would not be available for trading until The Options Clearing Corporation (“OCC”) represents to the Exchange that it is fully able to clear and settle such options. The Exchange has also analyzed its capacity and represents that it and The Options Price Reporting Authority (“OPRA”) have the necessary systems capacity to handle the additional traffic associated with the listing of options on Ether Funds. The Exchange believes any additional traffic that would be generated from the trading of options on Ether Funds would be manageable. The Exchange represents that Exchange members will not have a capacity issue as a result of this proposed rule change.
                    <PRTPAGE P="16185"/>
                </P>
                <P>
                    The Exchange represents that the same surveillance procedures applicable to all other options currently listed and traded on the Exchange will apply to options on Ether Funds, and that it has the necessary systems capacity to support the new option series. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options, as well as the proposed options on Ether Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ether Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that the Financial Industry Regulatory Authority (“FINRA”) conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the ISG Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by the Exchange's market surveillance staff, the Exchange would also be able to obtain information regarding trading in shares of the Ether Funds on other exchanges though ISG. Further, the Exchange has a Regulatory Services Agreement (“RSA”) with FINRA. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances.
                    <SU>37</SU>
                    <FTREF/>
                     The Exchange notes that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds.
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO. Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>The underlying shares of spot ether ETPs, including the Ether Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based exchange-traded products:</P>
                <EXTRACT>
                    <P>
                        Each Exchange has a comprehensive surveillance-sharing agreement with the [CME] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.
                        <SU>38</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>38</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937, 46938 (May 30, 2024) (File Nos. SR-NYSEARCA-2023-70; SR-NYSEARCA-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Ether-Based Commodity-Based Trust Shares and Trust Units) (“Ether ETP Approval Order”).
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that, given the consistently high correlation between the CME ether futures market and the spot ether market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of [the Ether ETPs].” 
                    <SU>39</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR 46941.
                    </P>
                </FTNT>
                <P>
                    In light of surveillance measures related to both options and futures as well as the underlying Ether Funds,
                    <SU>40</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds.
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on Ether Funds will be available via OPRA and major market data vendors.</P>
                <P>
                    The Exchange believes that offering options on Ether Funds will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of ether and hedging vehicle to meet their investment needs in connection with ether-related products and positions. The Exchange expects investors will transact in options on Ether Funds in the unregulated over-the-counter (“OTC”) options market,
                    <SU>41</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed 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 Ether Fund 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 Exchange notes that the ETPs that hold precious metal commodities on which the Exchange may already list and trade options are trusts structured in substantially the same manner as Ether Funds 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 options on any ETFs or ETPs that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals) that it currently lists and trades on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         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.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposed rule change is consistent with Section 6(b) of the Act 
                    <SU>42</SU>
                    <FTREF/>
                     in general and furthers the objectives of Section 6(b)(5) of the Act 
                    <SU>43</SU>
                    <FTREF/>
                     in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanisms of a free and open market and a national market system, and, in general, to protect investors and the public interest.
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <P>
                    In particular, the Exchange believes that the proposal to list and trade Ether Fund options 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 Ether Funds will provide investors with an opportunity to realize the benefits of utilizing options on an Ether Fund, 
                    <PRTPAGE P="16186"/>
                    including cost efficiencies and increased hedging strategies.
                </P>
                <P>
                    The Exchange believes that offering Ether Fund 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 ether and with ether-related products and positions. Additionally, the Exchange's offering of Ether Fund 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 ETPs,
                    <SU>44</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as Ether Funds and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     ether rather than precious metals) and for which the Exchange has not identified any issues with the continued listing and trading of commodity-backed ETP options it currently lists for trading.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Rule 5.3-O(g).
                    </P>
                </FTNT>
                <P>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 the Ether Funds satisfy the initial listing standards and continued listing standards currently in the Exchange Rules applicable to options on all ETFs and ETPs, including ETPs that hold other commodities already deemed appropriate for options trading on the Exchange. Additionally, as demonstrated above, each Ether Fund is characterized by a substantial number of shares that are widely held and actively traded. Ether Fund options will trade in the same manner as any other ETF or ETP options—the same Exchange Rules that currently govern the listing and trading of options, including permissible expirations, strike prices, minimum increments, and margin requirements, will govern the listing and trading of options on Ether Funds in the same manner.</P>
                <P>
                    The Exchange believes the proposal to exclude Ether Fund options from eligibility for FLEX trading is consistent with the Act because it will permit the Exchange to continue to participate in ongoing discussions with the Commission regarding appropriate position limits for options on these Funds.
                    <SU>45</SU>
                    <FTREF/>
                     In addition, this proposal benefits investors and in public interest because adds clarity and transparency to Exchange rules making them easier to navigate and understand, which in turn removes impediments to and perfects the mechanism of a free and open market and a national market system.
                </P>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         The Exchange may submit a subsequent rule filing that would permit the Exchange to authorize for trading FLEX options on the Ether Funds (which filing may propose changes to existing FLEX option position limits for such options if appropriate).
                    </P>
                </FTNT>
                <P>
                    The proposed position and exercise limit for options on the Ether Funds is 25,000 contracts, which proposed limits were recently approved for ETPs that hold bitcoin.
                    <SU>46</SU>
                    <FTREF/>
                     These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given the Ether Funds' market capitalization, average daily volume, number of beneficial holders, and high number of outstanding shares. The proposed position and exercise limits are consistent with the Act as they addresses concerns related to manipulation and protection of investors because the position and exercise limits are extremely conservative and more than appropriate given the Ether Funds are actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Rule 6.8-O, Commentary .06(f) (providing that options on bitcoin-backed ETPs are subject to a 25,000-contract position limit). 
                        <E T="03">See</E>
                         Rule 6.9-O, Commentary .01 (providing that exercise limits for Ether Fund options will be “equivalent to the corresponding position limit” for such options “as determined by Rule 6.8-O and Commentary thereto” (
                        <E T="03">i.e.,</E>
                         25,000 contacts)).
                    </P>
                </FTNT>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Ether Fund options. 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 options, including Ether Fund options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ether Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ether Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the ISG under the ISG Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by the Exchange's market surveillance staff, the Exchange would also be able to obtain information regarding trading in shares of the Ether Funds on other exchanges though ISG. Further, the Exchange has an RSA with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances. The Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds.</P>
                <P>
                    The underlying shares of spot ether ETPs, including the Ether Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>47</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME ether futures market and the spot ether market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>48</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Ether Funds,
                    <SU>49</SU>
                    <FTREF/>
                     the Exchange believes that 
                    <PRTPAGE P="16187"/>
                    existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ether ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR 46941.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>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.</P>
                <P>
                    <E T="03">Intramarket Competition:</E>
                     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 Ether Fund options would need to satisfy the initial listing standards set forth in the Exchange Rules in the same manner as any other option on an ETF before the Exchange could list these options. Additionally, Ether Fund 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 Ether Funds. Also, and as stated above, the Exchange already lists options on other commodity-based ETPs.
                    <SU>50</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See</E>
                         Rule 5.3-O(g)(iv)-(vi) and (viii)-(ix) (permitting the listing and trading of options on shares of ETPs that hold precious metals) and Rule 5.3-O, Commentary .01 (permitting the listing and trading of options on shares of ETPs that hold bitcoin).
                    </P>
                </FTNT>
                <P>
                    <E T="03">Intermarket Competition:</E>
                     The Exchange does not believe that the proposal to list and trade options on Ether Funds 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 Ether Fund 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. As noted herein, this filing based on similar proposals submitted by ISE and Cboe and approved by the Commission.
                    <SU>51</SU>
                    <FTREF/>
                     Additionally, other options exchanges are free to amend their listing rules, as applicable, to permit them to list and trade options on the Ether Funds. The Exchange notes that listing and trading Ether Fund 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.
                </P>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         
                        <E T="03">See supra</E>
                         note 5, Ether ETP Options Approval Orders.
                    </P>
                </FTNT>
                <P>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 Ether Fund 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 ether prices and ether-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were solicited or received with respect to the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>52</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>53</SU>
                    <FTREF/>
                     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 
                    <SU>54</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>55</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         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.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>56</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>57</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Ether Funds.
                    <SU>58</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Ether Funds, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Ether Funds. The proposal also establishes position and exercise limits for options on the Ether Funds and provides information regarding the surveillance procedures that will apply to Ether Funds options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Ether Funds options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>59</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 102798 (April 9, 2025) (SR-ISE-2024-35) (approving the listing and trading of options on ETHA); 102797 (April 9, 2025) (SR-Cboe-2024-036) (approving the listing and trading of options on FETH).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>
                    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.
                    <PRTPAGE P="16188"/>
                </P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov</E>
                    . Please include file number SR-NYSEARCA-2025-32 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-NYSEARCA-2025-32. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-NYSEARCA-2025-32 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>60</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>60</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06496 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102841; File No. SR-DTC-2025-005]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; The Depository Trust Company; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Money Market Instruments Modernization</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Exchange Act”) 
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 10, 2025, The Depository Trust Company (“DTC”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II and III below, which Items have been prepared by the clearing agency. DTC filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Exchange Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(4) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(4).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Clearing Agency's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The proposed rule change consists of amendments the Underwriting Service Guide, OA,
                    <SU>5</SU>
                    <FTREF/>
                     and the Policy Statement on the Eligibility of Foreign Securities (“Policy Statement”) set forth in the DTC Rules 
                    <SU>6</SU>
                    <FTREF/>
                     to facilitate enhancements to the securities eligibility process within DTC's Underwriting Service. More specifically, the proposed rule change would (i) migrate the processing of eligibility requests for money market instruments (“MMI” or “MMI Securities”) from a legacy platform to an existing, proven, modernized platform currently servicing eligibility requests for Electronic Certificates of Deposit (“E-CDs”) and (ii) simplify and update rule text, consolidate certain provisions, remove outdated, redundant, or extraneous rule text and requirements, reduce the amount of eligibility documentation required from Participants and issuers, and make other changes.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         The OA and Underwriting Service Guide are each Procedures of DTC. Pursuant to the DTC Rules, the term “Procedures” means the Procedures, service guides, and regulations of DTC adopted pursuant to DTC Rule 27, as amended from time to time. 
                        <E T="03">See</E>
                         DTC Rule 1, Section 1, 
                        <E T="03">infra</E>
                         note 6. They are binding on DTC and each Participant in the same manner that they are bound by the DTC Rules.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Capitalized terms not defined herein are defined in the Rules, By-Laws and Organization Certificate of DTC (“DTC Rules”), the DTC Operational Arrangements (Necessary for Securities to Become and Remain Eligible for DTC Services) (“OA”), and the DTC Underwriting Service Guide (each 
                        <E T="03">available at www.dtcc.com/legal/rules-and-procedures.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD1">II. Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its filing with the Commission, the clearing agency 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 clearing agency has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                <HD SOURCE="HD2">(A) Clearing Agency's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>The purpose of this proposed rule change is to amend the Underwriting Service Guide, OA, and the Policy Statement set forth in the DTC Rules to facilitate enhancements to the securities eligibility process within DTC's Underwriting Service. More specifically, the proposed rule change would (i) migrate the processing of eligibility requests for MMI Securities from a legacy platform to an existing, proven, modernized platform currently servicing eligibility requests for E-CDs and (ii) simplify and update rule text, consolidate certain provisions, remove outdated, redundant, or extraneous rule text and requirements, reduce the amount of eligibility documentation required from Participants and issuers, and make other changes.</P>
                <HD SOURCE="HD3">(i) Background</HD>
                <P>
                    DTC, through its Underwriting Service, serves the financial industry by making securities eligible for depository services. Participants can distribute new and secondary offerings quickly and economically by electronic book-entry delivery and settlement through DTC. 
                    <PRTPAGE P="16189"/>
                    Most eligible securities are introduced into the DTC system through DTC's Underwriting Department.
                    <SU>7</SU>
                    <FTREF/>
                     Securities may be credited to the accounts of underwriters that are Participants or correspondents of Participants working through Participant accounts and distributed to the market by delivery to other Participants.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Other issues of securities may be added through corporate actions with respect to existing securities, including events such as name changes, mergers and spinoffs.
                    </P>
                </FTNT>
                <P>
                    For non-MMI Securities, only a Participant, or its correspondent, may submit a request to make a security eligible for DTC services. However, eligibility requests with respect to MMI Securities may only be submitted by a Participant that is also an MMI Issuing and MMI Paying Agent (“IPA”).
                    <SU>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Pursuant to the DTC Rules, the term (i) “MMI Issuing Agent” means a Participant, acting as an issuing agent for an issuer with respect to a particular issue for MMI Securities of that issuer, that has executed such agreements as the Corporation shall require in connection with the participation of such Participant in the MMI Program in that capacity, and (ii) “MMI Paying Agent” means a Participant, acting as a paying agent for an issuer with respect to a particular issue of MMI Securities of that issuer, that has executed such agreements as [DTC] shall require in connection with the participation of such Participant in the MMI Program in that capacity. 
                        <E T="03">See</E>
                         Rule 1, 
                        <E T="03">supra</E>
                         note 6. While the DTC Rules provide for separate definitions for MMI Issuing Agent and MMI Paying Agent, typically a single firm acts in both capacities on behalf of a given issuer of MMI Securities.
                    </P>
                </FTNT>
                <P>
                    The Participant or correspondent seeking to make a security eligible for DTC services is required to provide an eligibility request by the submission of certain required issuer and securities data and related offering documents to DTC through a designated platform for a given security type. These platforms include the online Securities Origination, Underwriting and Reliable Corporate Action Environment (“UW SOURCE”) system, the Underwriting Central (“UWC”) system or MMI Web Underwriting Application (“MMI Web”). UW SOURCE is currently used for processing eligibility requests of security types other than E-CDs and MMI Securities, for which requests are processed through UWC and MMI Web, respectively.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         OA, 
                        <E T="03">supra</E>
                         note 6 at 6-7 and the Underwriting Service Guide, 
                        <E T="03">supra</E>
                         note 6 at 11. 
                        <E T="03">See also</E>
                         Securities Exchange Act Release No. 90895 (Jan. 11, 2021), 86 FR 4151 (Jan. 15, 2021) (SR-DTC-2020-017) (“E-CD Release”).
                    </P>
                </FTNT>
                <P>While these systems process eligibility requests in an efficient manner, DTC has identified opportunities for enhancement.</P>
                <P>First, as more fully described below, DTC has identified an opportunity to enhance the efficiency and convenience for processing of MMI Securities by migrating the MMI eligibility process from MMI Web, a legacy system, to UWC, a modern system that offers greater opportunities for automation and future improvements.</P>
                <P>Second, DTC has identified opportunities to reduce administrative burden for Participants and issuers relating to DTC eligibility of issues generally, whether for MMI or non-MMI Securities, through (i) simplification and updates to the texts of the OA, the Underwriting Service Guide and the DTC Rules, including consolidation of certain provisions and the removal of outdated, redundant or extraneous text and requirements and (ii) the consolidation, and reduction in the amount, of paperwork required from Participants and issuers in connection with eligibility requests, as described below.</P>
                <HD SOURCE="HD3">(ii) Proposed Rule Changes</HD>
                <HD SOURCE="HD3">A. Migration of MMI Eligibility Processing</HD>
                <P>
                    UW SOURCE and MMI Web are legacy applications that are robust and reliable. However, because they are comprised of various distinct mainframe legacy applications, enhancements and maintenance of such systems are becoming more difficult and more costly. They also offer reduced opportunities for automation than more modern systems. UWC, a newer, modern platform that is currently used for eligibility processing for E-CDs,
                    <SU>10</SU>
                    <FTREF/>
                     provides for a more integrated user experience by reducing the need for manual processing of documentation outside the system. Due to its modern design, UWC also provides a base for future enhancements for eligibility services because it is designed to provide a system that is streamlined, resilient and in line with the needs and usability standards of Participants and issuers.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         UWC's design eliminates the need for physical certificates for certain issue types of CDs, which previously would have been processed through UW SOURCE, by allowing them to be issued and held in electronic form. UW SOURCE, remains available for other types of issuances, including the issuances of CDs in physical form. 
                        <E T="03">See</E>
                         E-CD Release, 
                        <E T="03">supra</E>
                         note 9.
                    </P>
                </FTNT>
                <P>
                    To expand the use of UWC's modern design, including streamlined functionality, DTC proposes to migrate the processing of MMI eligibility requests from MMI Web to UWC. In this way, DTC expects that IPAs would realize benefits in efficiency and convenience in processing of MMI eligibility requests, similar to those when DTC made UWC available for processing of certificates of deposit as an alternative to using UW SOURCE.
                    <SU>11</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         UWC is a web interface and the migration from MMI Web to UWC will not require system changes by, or impose any additional costs on, IPAs. All IPAs have successfully completed testing of the use of UWC for MMI eligibility requests.
                    </P>
                </FTNT>
                <P>Therefore, pursuant to the proposed rule change, DTC would revise the section of the Underwriting Service Guide titled “How MMI Eligibility Works” to designate UWC, rather than MMI Web, as the system utilized by IPAs to submit MMI eligibility requests.</P>
                <HD SOURCE="HD3">B. Technical and Clarifying Changes</HD>
                <P>In addition, the proposed rule change would make changes to the Underwriting Service Guide, OA and the DTC Rules to reduce administrative burden for Participants and issuers relating to DTC eligibility generally, through (i) simplification and updates to rule text, including consolidation of certain provisions and the removal of outdated, redundant or extraneous rule text and requirements and (ii) the consolidation, and reduction in the amount of eligibility documentation required from Participants and issuers in connection with eligibility requests, as described below.</P>
                <HD SOURCE="HD3">I. Amendments to the Underwriting Service Guide</HD>
                <HD SOURCE="HD3">1. Background on MMI Underwriting Process</HD>
                <P>
                    The Underwriting Service Guide provides that MMI Web be used by IPAs for eligibility processing of MMI Securities so that an IPA may then issue, service, and settle MMI Securities that it introduces into the marketplace through DTC. In this regard, an IPA enters details for its issuances into MMI Web.
                    <SU>12</SU>
                    <FTREF/>
                     The Underwriting Service Guide also states that the IPA must also provide to DTC a completed and signed Letter of Representations (“LOR”) for MMI Securities to be made eligible, a master note, and a list of base CUSIP numbers (“CUSIP List”) 
                    <SU>13</SU>
                    <FTREF/>
                     that would be used for upcoming issuances of that type.
                    <SU>14</SU>
                    <FTREF/>
                     The Underwriting Service Guide 
                    <PRTPAGE P="16190"/>
                    provides that other documentation may also be required.
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         These details include the IPA's DTC account number, issuer name, SEC registration or exemption information, issuer contact information, state/country of domicile and program features (
                        <E T="03">e.g.,</E>
                         indexed to principal, variable rate, redeemable prior to maturity) (“Program Features”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         A CUSIP number is the identification number created by the American Banking Association's Committee on Uniform Security Identification Procedures (“CUSIP”) to uniquely identify issuers and issues of securities and financial instruments. 
                        <E T="03">See</E>
                         Committee on Uniform Securities Identification Procedures, 
                        <E T="03">available at www.aba.com/about-us/our-story/cusip-securities-identification. See</E>
                         Underwriting Service Guide, 
                        <E T="03">supra</E>
                         note 6 at 13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         The availability of a list of multiple CUSIPs facilitates the ability for an IPA to issue new MMI 
                        <PRTPAGE/>
                        Securities through DTC without further manual intervention by DTC.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         OA, 
                        <E T="03">supra</E>
                         note 6 at 8-17.
                    </P>
                </FTNT>
                <P>The LOR and other documentation are provided manually via email. The required CUSIPs may be submitted either by email or through MMI Web.</P>
                <P>
                    Once the IPA has submitted the required documentation and information, DTC reviews the IPA's submission to confirm that an issue satisfies DTC's eligibility and processing requirements. After reviewing and approving a submission, the DTC Underwriting Group (“Underwriting Group”) produces the MMI issuer control table (“ICT”).
                    <SU>16</SU>
                    <FTREF/>
                     The MMI ICT allows the IPA to directly create an instruction to add the CUSIP and security-level details (
                    <E T="03">e.g.,</E>
                     interest rate, maturity date, payment frequency) to DTC's master file (“Master File”).
                    <SU>17</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Underwriting Service Guide, 
                        <E T="03">supra</E>
                         note 6 at 13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         DTC maintains the Master File of all CUSIPs representing securities made eligible at DTC. 
                        <E T="03">See</E>
                         Underwriting Service Guide, 
                        <E T="03">supra</E>
                         note 6 at 10.
                    </P>
                </FTNT>
                <P>DTC proposes to amend the Underwriting Service Guide in order to simplify and consolidate processes, as described below.</P>
                <HD SOURCE="HD3">2. Removal of Program Features Data Entry</HD>
                <P>Currently, MMI Web requires an IPA to indicate in a “Yes/No” format whether an issuance contains certain Program Features, including payment and redemption details of the MMI Securities brought for eligibility. These Program Features, while informational, are not necessary for DTC to process the eligibility request or to service an MMI Security and may not reflect all features of a given MMI Security. To remove an outdated requirement and reduce the steps required to make an MMI Security eligible, UWC will no longer require IPAs to enter indicators for Program Features, and text related to this requirement in the section of the Underwriting Service Guide entitled “How MMI Eligibility Works” would be removed.</P>
                <HD SOURCE="HD3">3. Removal of Reference to ICT</HD>
                <P>The text in the section “How MMI Eligibility Works” includes a description of the process of adding an MMI Security to Master File, including the review and approval of the issue by the Underwriting Group and the Underwriting Group's creation of the ICT, which allows the IPA to add a CUSIP to the Master File. However, the use of ICT to perform this process is transparent to IPAs. Therefore, in order to simplify the text, while DTC would continue to utilize the ICT, DTC would remove the reference to it from the Underwriting Service Guide.</P>
                <HD SOURCE="HD3">4. Changes to Exhibit A to the MMI Certificate Agreement</HD>
                <P>
                    The Underwriting Service Guide provides that the IPA will provide an “Exhibit A” 
                    <SU>18</SU>
                    <FTREF/>
                     to the MMI Certificate Agreement 
                    <SU>19</SU>
                    <FTREF/>
                     listing the issuer name and CUSIP base for a group of MMI Securities to be issued. However, the actual form of Exhibit A does not require the CUSIP to be listed as the CUSIP for the MMI Securities is either entered directly into MMI Web or delivered to DTC by email. Exhibit A does require certain specified issuance details, including (i) issuer name, (ii) certain program information (which may include (a) series; (b) rank of indebtedness; and (c) reference to the provision of the Securities Act of 1933, as amended, (“Securities Act”) 
                    <SU>20</SU>
                    <FTREF/>
                     pursuant to which the Program is exempt from registration, if any).
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">Available at www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/mmi-letters/EXHIBIT—A.docx.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         Pursuant to an “MMI Certificate Agreement,” an IPA maintains a securities certificate, registered in the name of DTC's nominee, Cede &amp; Co., for each MMI Security that it issues through DTC. Having an IPA maintain the certificate eliminates the need for DTC to hold a certificate in its vault that would need to be delivered to an IPA upon redemption of an MMI Security.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         17 CFR 230.144A.
                    </P>
                </FTNT>
                <P>
                    Exhibit A is currently provided by an IPA in Word format using a form available on DTCC's website.
                    <SU>21</SU>
                    <FTREF/>
                     Upon implementation of the use of UWC for MMI eligibility processing, this document will be opened directly through UWC for the IPA to review. Rather than providing a physical signature, the IPA will provide an electronic attestation to the form. In addition, to facilitate consolidation of documentation, a separate form required for issues denominated in a foreign currency (“Foreign Currency Rider”) 
                    <SU>22</SU>
                    <FTREF/>
                     when used for MMI Securities will also be incorporated within the Exhibit A, and, if applicable (
                    <E T="03">i.e.,</E>
                     the issue is denominated in a foreign currency), will be deemed acknowledged upon submission of the electronic attestation.
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         Supra note 18.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         One of two forms is used for this purpose, depending on whether the issuance offers the option for payments in the foreign currency or U.S. dollar payments only. 
                        <E T="03">Available at www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/riders/Curr-Rider-With-USD-Option.pdf</E>
                         and 
                        <E T="03">www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/riders/Curr-Rider-USD-Only.pdf.</E>
                    </P>
                </FTNT>
                <P>Pursuant to the proposed rule change, to reflect the content and revised format of Exhibit A for use under UWC as discussed above, the text would be revised to remove the reference to inclusion of the base CUSIP and instead add “including specified issuance details and a foreign currency rider, as applicable.”</P>
                <HD SOURCE="HD3">II. Amendments to the Operational Arrangements</HD>
                <HD SOURCE="HD3">1. Consolidation of MMI Letter of Representations Terms Within the OA (and Update of Related Reference in the Underwriting Service Guide)</HD>
                <P>
                    An issuer and IPA jointly sign a LOR for each group of MMI Securities represented by a base CUSIP made DTC-eligible, which is valid for all MMI Securities issued under the respective CUSIP List. There are currently nine forms of LOR for different types of MMI Securities. They include LORs used for (i) institutional certificates of deposit (“Institutional LOR”),
                    <SU>23</SU>
                    <FTREF/>
                     (ii) municipal variable rate demand obligations (“Muni VRDO LOR”),
                    <SU>24</SU>
                    <FTREF/>
                     (iii) municipal tax-exempt commercial paper (“Muni TECP LOR”),
                    <SU>25</SU>
                    <FTREF/>
                     (iv) corporate commercial paper (“CP LOR”),
                    <SU>26</SU>
                    <FTREF/>
                     (v) preferred stock (“Preferred LOR”),
                    <SU>27</SU>
                    <FTREF/>
                     (vi) corporate variable rate demand obligations (“CVRDO LOR”),
                    <SU>28</SU>
                    <FTREF/>
                     (vii) discount notes (“Discount LOR”),
                    <SU>29</SU>
                    <FTREF/>
                     (viii) medium-term notes/medium-term bank notes/deposit notes (“Medium Term/Deposit LOR”),
                    <SU>30</SU>
                    <FTREF/>
                     and (ix) short-term bank notes (“Short Term LOR”).
                    <SU>31</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">Available at www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/eligibility/21747-CD_2019.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">Available at www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/mmi-letters/21793-VMC.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">Available at www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/mmi-master-note/Municipal-Commercial-Paper-Master-Note-Form.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">Available at www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/mmi-letters/21848-CP.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">Available at www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/mmi-letters/21859-PCP.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">Available at www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/mmi-letters/21884-VCC.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">Available at www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/mmi-letters/21904-DN.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">Available at www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/mmi-letters/22029-MT.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">Available at www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/mmi-letters/22036-SB.pdf.</E>
                    </P>
                </FTNT>
                <P>Each LOR contains terms binding the issuer and the IPA. Many terms within a form of LOR for one MMI Security type are the same or similar to those in another form.</P>
                <P>
                    For non-MMI Securities, DTC offers the option for an issuer to provide either a LOR for a discrete issuance, or a 
                    <PRTPAGE P="16191"/>
                    Blanket Letter of Representations (“BLOR”), which once executed is valid for all issuances of that issuer, obviating the need to obtain a new LOR with each issuance. The non-MMI LOR and BLOR represents the issuer's agreement to comply with the requirements set forth in the OA, as amended from time to time. In this regard, relevant terms that would otherwise be included in a LOR (such as in the MMI model) are set forth in the OA. Incorporating terms into the OA removes the need for the creation of separate forms for each security product type (
                    <E T="03">e.g.,</E>
                     common stock, corporate debt, municipal debt, etc.)
                </P>
                <P>Following the practice used for non-MMI Securities, the proposed rule change would eliminate the requirement for nine different letters of representation for MMI Securities and instead allow issuers and paying agents to sign an MMI BLOR.</P>
                <P>In this regard, subsection I.B.1.a. (Letters of Representations) would be revised to provide the requirement for issuers and MMI Issuing Agents to provide a fully executed MMI BLOR effective for each MMI security issued by them and provide a link to a copy of the document. The BLOR would apply to all issuances of a given issuer and its identified IPA. However, if an issuer designates a different IPA for its issuances, or if an IPA acts on behalf of a different issuer, a new BLOR must be executed by the relevant parties. Also, text in this subsection would be clarified to distinguish which provisions relate to non-MMI BLORs.</P>
                <P>The provisions previously included in the individual MMI LORs are otherwise substantively covered by provisions already included in the OA today, or, if not already covered, would be incorporated into the OA as described below.</P>
                <P>In this regard, subsection I.B.1.d. of the OA, which contains agreements of various stakeholders, including issuers and agents, would be supplemented with a new subsection I.B.1.e. to include specific terms relating to MMI Securities.</P>
                <P>First, the title of this section would be changed from “Agreements of Underwriter, Issuer and Agent” to “Agreements of Underwriter, Issuer and Agent (including MMI Issuing Agent and MMI Paying Agent for MMI Securities).”</P>
                <P>Second, new subsection I.B.1.e.i. would be added to include a requirement relating to the issuer and MMI Issuing Agent obtaining the CUSIP List mentioned above. The text would cross-reference to a new subsection II.A.1. (CUSIP Number Assignment) as II.A.1.a. which would include the requirements that the issuer or MMI Issuing Agent must obtain a CUSIP List from CUSIP Global Services and require an additional CUSIP List to be obtained once a certain number of CUSIPs remains unassigned. Consistent with the current LORs, the issuer or MMI Issuing Agent would be required to obtain a CUSIP List of 900 CUSIPs for debt securities and 79 CUSIPs for equity securities.</P>
                <P>
                    Third, new subsection I.B.1.e.ii. would add a provision from the MMI LORs relating to the ability of an MMI Issuing Agent to provide cancellation instructions for an issuance through the DTC settlement user interface (“Settlement User Interface”) 
                    <SU>32</SU>
                    <FTREF/>
                     so long as the issuance is scheduled to take place one or more days after the MMI Issuing Agent has given issuance instructions to DTC.
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         The “Settlement User Interface” is defined in the DTC Settlement Service Guide as any system or combination of systems that allows for input/inquiry into the DTC Settlement System. See DTC Settlement Service Guide, 
                        <E T="03">available at www.dtcc.com/-/media/Files/Downloads/legal/service-guides/Settlement.pdf</E>
                         at 6.
                    </P>
                </FTNT>
                <P>Fourth, new subsection I.B.1.E.iii. would add a provision stating that a MMI Paying Agent may request the withdrawal of securities that it holds in its DTC account by giving a withdrawal instruction through the Settlement User Interface.</P>
                <P>
                    Fifth, new subsection I.B.1.E.iv. would add a provision that was included in the MMI LORs stating that a paying agent may override DTC's determination of interest and principal through DTC's corporate actions system.
                    <SU>33</SU>
                    <FTREF/>
                     This provision would also include a reference that such overrides are subject to any applicable fees set forth in DTC's Guide to Fee Schedule (“DTC Fee Guide”).
                    <SU>34</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         The user interfaces for the corporate actions system include the Participant Browser Service (“PBS”), Participant Terminal System, CA Web and certain other formats. The override instructions contemplated in this subsection are currently submitted through the “PAMM” function in PBS. However, because DTC is currently undergoing a modernization of its systems, the general reference to the corporate actions system is being used here in case the function is updated as part of the modernization effort.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         The DTC Fee Guide includes fees relating to MMI position reinstatements, event type modifications and rate changes. 
                        <E T="03">See</E>
                         DTC Fee Guide, 
                        <E T="03">available at www.dtcc.com/-/media/Files/Downloads/legal/fee-guides/DTC-Fee-Schedule.pdf</E>
                         at 7-8.
                    </P>
                </FTNT>
                <P>The MMI BLOR would also provide that the IPA (in the capacity as MMI Paying Agent) has entered into the applicable form of MMI Certificate Agreement, and it would include the note program in its Exhibit A (to the MMI Certificate Agreement), prior to issuance of the MMI Securities.</P>
                <P>For consistency across Procedures, the text of the Underwriting Service Guide would be revised to remove the requirement that the required MMI LOR be “product-specific” and instead refer to a “Blanket Letter of Representations” in this regard, rather than a “Letter of Representations.”</P>
                <HD SOURCE="HD3">2. Changes With Respect to Required Riders to LORs</HD>
                <P>
                    Rule 144A 
                    <SU>35</SU>
                    <FTREF/>
                     and Regulation S (“Reg S”) 
                    <SU>36</SU>
                    <FTREF/>
                     are provisions under the Securities Act that facilitate the sale of securities to institutional investors and non-U.S. investors, respectively. Rule 144A allows for the resale of restricted securities (“144A Securities”) to qualified institutional buyers without the need for SEC registration, while Reg S provides a safe harbor for offers and sales of securities (“Reg S Securities”) outside the United States, exempting them from SEC registration requirements.
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         17 CFR 230.144A.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         17 CFR 230.901-230.905.
                    </P>
                </FTNT>
                <P>The Participant requesting eligibility for 144A or Reg S Securities must provide a rider to LOR signed by the issuer. This rider includes representations regarding the restricted status of the securities under the respective rule or regulation. Additionally, the issuer must obtain a CUSIP for the security that is distinct from any non-restricted security in the same class. The riders also include representations concerning the rights of DTC, Cede &amp; Co, and Participants, covering aspects such as voting, distributions, and the receipt of certificates.</P>
                <P>The proposed rule change would eliminate the requirement to obtain 144A riders and Reg S riders for all new issues, whether MMI or non-MMI Securities. Currently, these riders are required for all Rule 144A and Reg S Securities. However, DTC does not believe they are necessary for new issues because the issuer is typically involved in the underwriting process and works directly with a Participant to bring the new issue to market. As part of this process, the issuer has a vested interest in ensuring compliance with applicable securities laws and DTC requirements, thereby reducing the need for separate rider representations. In contrast, for older issues, where the issuer may not be as closely tied to the Participant bringing the security to DTC, the requirement to provide the riders would remain in place.</P>
                <P>
                    The representations previously included in the 144A and Reg S riders would be incorporated into the OA, 
                    <PRTPAGE P="16192"/>
                    ensuring that the necessary regulatory and compliance obligations remain intact. Since issuers and IPAs executing a BLOR are legally bound by the OA, this change promotes efficiency without introducing additional legal risk for DTC.
                </P>
                <P>In this regard, subsection I.B.1.b. (Required Riders to the LOR) would be revised to qualify this requirement such that Rule 144A and Reg S riders are only required with respect to older issues. Also, subsection I.B.1.d. relating to agreements of issuers and others, would be amended to add item xi that issuers make representations set forth in a new subsection II.A.1.b. (Rule 144A and Reg S CUSIPs), which would contain the requirements currently set forth in the Rule 144A and Reg S riders.</P>
                <P>These modifications, along with the creation of the MMI BLOR as described above, simplify the eligibility process by reducing the number of required documents, allowing for a single BLOR per issuer-IPA combination and the incorporation of the Rule 144A rider and Reg S rider provisions into the OA, thereby expediting the rapid issuance of MMI Securities while maintaining the related compliance and legal requirements.</P>
                <P>In addition, the proposed rule change would make certain technical and clarifying changes to the same subsection I.B.1.b.</P>
                <P>
                    First, a provision stating that a rider is required with respect to each security of a U.K. issuer would be revised to also include that a rider is required with respect to each security of an Ireland issuer. DTC collects these riders 
                    <SU>37</SU>
                    <FTREF/>
                     to obtain representations relating to unique tax considerations relating to U.K. and Ireland debt securities; however, the OA currently only refers to the U.K. Rider. Therefore, a reference to the Irish Rider is being added for transparency relating to this requirement.
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">Available at www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/riders/Irish-Rider.pdf</E>
                         (“Irish Rider”) and 
                        <E T="03">www.dtcc.com/-/media/Files/Downloads/legal/issue-eligibility/riders/UK-Rider.pdf</E>
                         (“U.K. Rider”).
                    </P>
                </FTNT>
                <P>Second, a sentence that provides links to certain forms of BLOR and LOR would be revised to clarify that the referenced forms are used for non-MMI Securities.</P>
                <P>Third, a link to the form of MMI BLOR would be added.</P>
                <HD SOURCE="HD3">3. Special Rules and Processes for MMI</HD>
                <P>Subsection I.A.2. of the OA contains text noting that while the general arrangements of the OA apply to MMI Securities, under the DTC Rules, MMI are processed differently than other Securities. To provide clarity to stakeholders with respect to applicable Rules and Procedures, the proposed rule change would add a reference stating that in addition to the OA, Rules and Procedures relating to MMI include, but are not limited to, those set forth in the DTC Rules (including, but not limited to Rule 9(C)), DTC Distributions Service Guide, the Underwriting Service Guide, DTC Redemptions Service Guide, DTC Reorganizations Service Guide, and DTC Settlement Service Guide.</P>
                <HD SOURCE="HD3">4. Other Technical Changes</HD>
                <P>
                    Subsection I.B.1.d.ii. provides that the Issuer recognizes that DTC does not undertake to, and shall not have any responsibility to, monitor or ascertain the compliance of any transactions in securities with any applicable law, rule or regulation and lists applicable laws and rules and lists out certain applicable laws. However, it inadvertently omits a reference to the Securities Act and applicable rules and regulations, which are foundational to DTC's eligibility requirements.
                    <SU>38</SU>
                    <FTREF/>
                     The proposed rule change would correct this omission by including a reference to the Securities Act, Rule 144A, Reg S and/or any exemptions from registration thereto.
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         Generally, the issues that may be made eligible for DTC's book-entry delivery, settlement and depository services are those that have been issued in a transaction that (i) has been registered with the Commission pursuant to the Securities Act; (ii) was exempt from registration pursuant to a Securities Act exemption that does not involve (or, at the time of the request for eligibility, no longer involves) transfer or ownership restrictions; or (iii) permits resale of the securities pursuant to Rule 144A or Regulation S, and, in all cases, such securities otherwise meet DTC's eligibility criteria. 
                        <E T="03">See</E>
                         OA, 
                        <E T="03">supra</E>
                         note 6 at 8.
                    </P>
                </FTNT>
                <P>Subsection I.B.1.d.iv. provides that DTC may direct any issuer or agent to use any DTC telephone number or address as the number or address to which notices or payments may be sent. The proposed rule change would update this provision to “street address” and also include “email address or other electronic means.”</P>
                <HD SOURCE="HD3">III. Amendments to the Policy Statement in the Rules</HD>
                <P>The proposed rule change would make a technical amendment to the Policy Statement to delete a duplicative provision covered by the OA and also align the DTC Rules with current practice and regulatory requirements.</P>
                <P>The Policy Statement covers eligibility provisions for both foreign securities deposited with DTC at the time that such foreign securities are first distributed (referred to as “new issues”) and foreign securities deposited with DTC subsequent to the time that such foreign securities are first distributed (referred to as “older issues.”)</P>
                <P>Section 3 of the Policy Statement (“Section 3”) provides various measures designed to facilitate compliance by issuers and Participants with their obligations to DTC and pursuant to the federal securities laws.</P>
                <P>
                    Subsections 3(a)(2) and (3) reference the requirement that, for new issues, an issuer must provide a 144A rider or Reg S rider for securities eligible for resale under Rule 144A or Reg S, respectively. These provisions state that the text of both riders must contain representations regarding the securities' eligibility for resale under the applicable rule and their CUSIP or “CINS” identification number,
                    <SU>39</SU>
                    <FTREF/>
                     if any for any registered securities of the issuer of the same class.
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         CINS is the acronym for the CUSIP International Numbering System. A CINS number is an alphanumeric identifier used as a securities identifier in several non-North American markets. 
                        <E T="03">See</E>
                         CUSIP Global Services, 
                        <E T="03">Supporting Efficient Global Capital Markets, cusip.com</E>
                         (2025), 
                        <E T="03">www.cusip.com/identifiers.html#/CINS.</E>
                    </P>
                </FTNT>
                <P>Subsection 3(b)(1), subparagraph (ii) also includes a requirement that issuers represent whether the securities are investment-grade securities or securities designated for inclusion in an SRO Rule 144A system. A similar provision under Subsection 3(b) states that for older issues, DTC would confirm that any foreign 144A Securities deposited with DTC are investment grade securities designated for including in an SRO Rule 144A System.</P>
                <P>DTC would delete Subsections 3(a)(2), 3(a)(3) and 3(b)(1), subparagraph (ii) for the reasons described below.</P>
                <P>First, the deletion of the provisions relating to the 144A and Reg S riders from the Policy Statement would simplify the related Rules and Procedures, as these riders are already addressed in the OA, which sets forth eligibility requirements more broadly and apply beyond just foreign securities.</P>
                <P>
                    Second, the reference to securities being designated for inclusion in an SRO Rule 144A system is outdated, as this requirement was eliminated in a prior rule filing by DTC 
                    <SU>40</SU>
                    <FTREF/>
                     but was never removed from the Policy Statement. This proposed rule change would correct that oversight by eliminating obsolete text as a technical clarification.
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 59384 (Feb. 11, 2009), 74 FR 7941 (Feb. 20, 2009) (SR-DTC-2008-13).
                    </P>
                </FTNT>
                <P>
                    Third, the investment grade requirement would be removed because DTC's underwriting process need not assess the investment grade status of securities as part of the eligibility determination process. This aligns with the broader approach taken by DTC's 
                    <PRTPAGE P="16193"/>
                    eligibility requirements which focus on compliance with regulatory and operational criteria rather than subjective credit assessments. As a result, removing this requirement from the Policy Statement better reflects current practice and ensures consistency with the actual procedures followed by DTC.
                </P>
                <P>By implementing these changes, DTC enhances clarity, reduces redundancy, and ensures that its Rules and Procedures remain aligned with operational and regulatory frameworks.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    DTC believes that the proposed rule change is consistent with the requirements of the Exchange Act, and the rules and regulations thereunder applicable to a registered clearing agency. Specifically, DTC believes that the proposed rule change is consistent with Section 17A(b)(3)(F) of the Exchange Act 
                    <SU>41</SU>
                    <FTREF/>
                     for the reasons described below.
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         15 U.S.C. 78q-1(b)(3)(F).
                    </P>
                </FTNT>
                <P>
                    Section 17A(b)(3)(F) of the Exchange Act requires, in part, that the rules of a clearing agency, such as DTC, be designed to promote the prompt and accurate clearance and settlement of securities transactions.
                    <SU>42</SU>
                    <FTREF/>
                     As described above, the proposed rule change would amend the Underwriting Service Guide, OA, and the Policy Statement to facilitate enhancements to the securities eligibility process within DTC's Underwriting Service.
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>The proposed amendments to the Underwriting Service Guide include providing for the migration of the processing of eligibility requests for MMI Securities from a legacy platform to an existing, proven, modernized platform currently servicing eligibility requests for E-CDs. By migrating the MMI Securities eligibility functionality to a system with enhanced usability, flexibility, and resiliency, the proposed rule change is designed to support a more effective and efficient model for making MMI Securities eligible for DTC services, including clearance and settlement.</P>
                <P>Additionally, the proposal aims to simplify and update text, consolidate certain provisions, remove outdated, redundant, or extraneous text and requirements, and reduce the amount of eligibility documentation required from Participants and issuers and make other technical changes.</P>
                <P>First, the amendments to the Underwriting Service Guide include removal of the requirement for IPAs to enter indicators for Program Features and eliminate references to the ICT which are not necessary for the processing of eligibility requests. Furthermore, the proposed rule change would reflect the content and revised format of Exhibit A, as described above, and the consolidation of the Foreign Currency Rider under the Exhibit A for MMI Securities. This change clarifies and simplifies the eligibility process by removing outdated requirements and unnecessary references, and consolidating documentation, thereby streamlining the process for making securities eligible for DTC services, including clearance and settlement, while maintaining related compliance and legal requirements.</P>
                <P>Second, the amendments to the OA involve consolidating the terms of the MMI LOR within the OA and allowing issuers and paying agents to sign a BLOR instead of multiple product-specific LORs, and eliminating the requirement to obtain 144A and Reg S riders for all new issues. This change simplifies the eligibility process by reducing the number of required documents to make securities eligible for DTC services, thereby expediting the process for securities to become eligible for DTC services, including clearance and settlement services, while maintaining the related compliance and legal requirements.</P>
                <P>Third, the amendments to the Policy Statement include deleting duplicative provisions covered by the OA and aligning the DTC Rules with current practice and regulatory requirements. This involves removing outdated references to securities being designated for inclusion in a SRO Rule 144A system and eliminating the investment grade requirement, which is not necessary for DTC's eligibility determination process, further clarifying related requirements and streamlining the eligibility process.</P>
                <P>
                    The migration of the MMI eligibility functionality to a modernized platform improves the efficiency and accuracy of processing eligibility requests to make securities eligible for DTC services, including clearance and settlement, thereby promoting the prompt and accurate clearance and settlement of securities transactions. Simplifying and updating the text, consolidating provisions, and reducing the amount of eligibility documentation required from Participants and issuers clarifies and streamlines provisions relating to making securities eligible for DTC services, including clearance and settlement, further supporting the prompt and accurate clearance and settlement of transactions. Therefore, the Clearing Agencies believe the proposed changes described above are consistent with Section 17A(b)(3)(F) of the Exchange Act.
                    <SU>43</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD2">(B) Clearing Agency's Statement on Burden on Competition</HD>
                <P>DTC does not believe that the proposed changes to the Underwriting Service Guide, OA, and Policy Statement, as described above, will have any impact, or impose any burden, on competition. As described above, the proposed rule change would amend the Underwriting Service Guide, OA, and the Policy Statement to facilitate enhancements to the securities eligibility process within DTC's Underwriting Service. More specifically, the proposed rule change will (i) migrate the processing of eligibility requests for MMI Securities from a legacy platform to an existing, proven, modernized platform and (ii) simplify and update rule text, consolidate certain provisions, remove outdated, redundant, or extraneous rule text and requirements, reduce the amount of eligibility documentation required from Participants and issuers, and make other technical changes, as described above.</P>
                <P>
                    The proposed migration of MMI eligibility functionality from MMI Web to UWC entails changing to a system with enhanced usability and flexibility that will be available to all users equally at no additional cost or effort to them, except for user testing which has been completed. The proposed changes that would simplify and update rule text, consolidate certain provisions, remove outdated, redundant, or extraneous rule text and requirements, reduce the amount of eligibility documentation required from Participants and issuers, and make other changes would also apply to all affected Participants and issuers, except for the elimination of the 144A rider for new issues such that this rider will still be required for older issues. Maintaining the requirement for a 144A rider for older issues does not impose a burden on competition because it applies uniformly to all older issues, ensuring a consistent and fair approach. Additionally, the continued use of the 144A rider for older issues helps maintain the integrity and reliability of the eligibility process for these securities, without introducing any additional costs or efforts for users. In light of the foregoing, DTC does not believe that the proposed rule change would impose a burden on competition.
                    <PRTPAGE P="16194"/>
                </P>
                <HD SOURCE="HD2">(C) Clearing Agency's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The DTC has not received or solicited any written comments relating to this proposal. If any written comments are received, DTC will amend its filing to publicly file such comments as an Exhibit 2 to its filing, as required by Form 19b-4 and the General Instructions thereto.</P>
                <P>Persons submitting written comments are cautioned that, according to Section IV (Solicitation of Comments) of the Exhibit 1A in the General Instructions to Form 19b-4, the Commission does not edit personal identifying information from comment submissions. Commenters should submit only information that they wish to make available publicly, including their name, email address, and any other identifying information.</P>
                <P>
                    All prospective commenters should follow the Commission's instructions on 
                    <E T="03">How to Submit a Comment, available at www.sec.gov/regulatory-actions/how-to-submit-comments.</E>
                     General questions regarding the rule filing process or logistical questions regarding this filing should be directed to the Main Office of the Commission's Division of Trading and Markets at 
                    <E T="03">tradingandmarkets@sec.gov</E>
                     or 202-551-5777.
                </P>
                <P>DTC reserves the right to not respond to any comments received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change, and Timing for Commission Action</HD>
                <P>The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Exchange Act and paragraph (f) of Rule 19b-4 thereunder. 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 Exchange Act.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule change is consistent with the Exchange Act. Comments may be submitted by any of the following methods:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number  SR-DTC-2025-005 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549.</P>
                <FP>
                    All submissions should refer to file number SR-DTC-2025-005. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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 DTC and on DTCC's website (
                    <E T="03">www.dtcc.com/legal/sec-rule-filings</E>
                    ). 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-DTC-2025-005 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>44</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>44</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06523 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102848; File No. SR-SAPPHIRE-2025-21]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities To List and Trade Options on the Grayscale Ethereum Trust, the Grayscale Ethereum Mini Trust, and the Bitwise Ethereum ETF</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 11, 2025, MIAX Sapphire, LLC (“Exchange”) filed with the Securities and Exchange Commission (“Commission”) a 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.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities to list and trade options on the Grayscale Ethereum Trust (the “Grayscale Fund” or “ETHE”), the Grayscale Ethereum Mini Trust (the “Grayscale Mini Fund” or “ETH”), and the Bitwise Ethereum ETF (the “Bitwise Fund” or “ETHW” and, collectively, the “Ether Funds” or “Funds”).</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings,</E>
                     at the Exchange's principal office, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>
                    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 
                    <PRTPAGE P="16195"/>
                    forth in sections A, B, and C below, of the most significant aspects of such statements.
                </P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities,
                    <SU>3</SU>
                    <FTREF/>
                     to allow the Exchange to list and trade options on the Ether Funds, designating them as appropriate for options trading on the Exchange.
                    <SU>4</SU>
                    <FTREF/>
                     This is a competitive filing based on a similar proposal submitted by NYSE American, LLC (“NYSE American”), which was approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange notes that its affiliate options exchanges, Miami International Securities Exchange, LLC (“MIAX”) and MIAX Sapphire, LLC (“MIAX Sapphire”), submitted (or will submit) substantively similar proposals. The Exchange notes that all the rules of Chapter III of MIAX, including MIAX Rules 307 and 309, are incorporated by reference into the MIAX Pearl and MIAX Sapphire rulebooks. The Exchange also notes that all of the rules of Chapter III of MIAX, including MIAX Rules 307 and 309, and the rules of Chapter IV of the MIAX, including MIAX Rule 402, are incorporated by reference into the MIAX Emerald, LLC (“MIAX Emerald”) rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; and SRCboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ether ETP Approval Order”); 
                        <E T="03">and</E>
                         100541 (July 17, 2024), 89 FR 59786 (July 23, 2024) (SR-NYSEArca-2024-44; and SR-NYSEArca-2024-53) (Order Granting Approval of Proposed Rule Changes To List and Trade Shares of the Grayscale Ethereum Mini Trust and ProShares Ethereum ETF).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025) (SR-NYSEAMER-2024-45)(Self-Regulatory Organizations; NYSE American LLC; Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to Amend Exchange Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust)(“NYSE American Ether Approval Order”).
                    </P>
                </FTNT>
                <P>
                    Exchange Rule 402(i) provides that, subject to certain other criteria set forth in the Rule, securities deemed appropriate for options trading include Exchange-Traded Fund Shares (or ETFs) as defined in Subparagraphs (1)-(5), including Exchange-Traded Fund Shares, that represent certain types of interests,
                    <SU>6</SU>
                    <FTREF/>
                     and exchange traded products (“ETPs”), structured as trusts that hold precious metals (which are deemed commodities).
                    <SU>7</SU>
                    <FTREF/>
                     Last year, the Exchange received approval from the Commission to list and trade options on specific funds that hold bitcoin (also deemed a commodity).
                    <SU>8</SU>
                    <FTREF/>
                     Like ETPs backed by precious metals and bitcoin (
                    <E T="03">i.e.,</E>
                     commodities), the Exchange proposes to allow options trading on the Ether Funds that hold ether—which is also deemed a commodity.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i), which permits options trading on exchange-traded funds (“ETFs”) that: (1) 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 (“Funds”), 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); (2) represent interests in a trust or similar entity that holds a specified non-U.S. currency or currencies deposited with the trust which when aggregated in some specified minimum number may be surrendered to the trust or similar entity 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”); (3) 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”); (4) are issued by the SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Silver ETF Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Palladium ETF Trust, the Aberdeen Standard Platinum ETF Trust, the Goldman Sachs Physical Gold ETF, the Sprott Physical Gold Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, the ARK 21 Shares Bitcoin ETF, the Fidelity Ethereum Fund, or iShares Ethereum Trust; (5) represent an interest in a registered investment company (“Investment Company”) organized as an open-end management company or similar entity, that invests in a portfolio of securities selected by the Investment Company's investment adviser consistent with the Investment Company's investment objectives and policies, which is issued in a specified aggregate minimum number in return for a deposit of a specified portfolio of securities and/or a cash amount with a value equal to the next determined net asset value (“NAV”), and when aggregated in the same specified minimum number, may be redeemed at a holder's request, which holder will be paid a specified portfolio of securities and/or cash with a value equal to the next determined NAV (“Managed Fund Share”); provided that all of the conditions listed in (5)(i) and 5(ii) are met.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         On November 25, 2024, the Commission approved the Exchange's proposal to list and trade options on the Grayscale Bitcoin Trust (BTC), the Grayscale Bitcoin Mini Trust BTC, the Bitwise Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, and the ARK 21Shares Bitcoin ETF. 
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 101745 (November 25, 2024), 89 FR 95328 (December 2, 2024)(SR-SAPPHIRE-2024-37); 
                        <E T="03">and</E>
                         101730 (November 25, 2024), 89 FR 95301 (December 2, 2024)(SR-SAPPHIRE-2024-38).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 101699 (November 21, 2024), 89 FR 93757 (November 27, 2024) (SR-SAPPHIRE-2024-36) (Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities To List and Trade Options on the iShares Bitcoin Trust); 101745 (November 25, 2024), 89 FR 94784 (December 2, 2024) (SR-SAPPHIRE-2024-37) (Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, To List and Trade Options on the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, and the Bitwise Bitcoin ETF); 101730 (November 25, 2024), 89 FR 95301 (December 2, 2024) (SR-SAPPHIRE-2024-38) (Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities To List and Trade Options on the Fidelity Wise Origin Bitcoin Fund (the “Fidelity Fund”) and the ARK 21Shares Bitcoin ETF (the “ARK 21 Fund”).
                    </P>
                </FTNT>
                <P>
                    The Ether Funds are structured as trusts that hold ether. Like ETFs and ETPs currently deemed appropriate for options trading, the investment objective of each Ether Fund trust is for its shares to reflect the performance of ether (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to ether without the complexities of ether delivery. Each Ether Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of ether and are designed to track ether or the performance of the price of ether and offer access to the ether market.
                    <SU>9</SU>
                    <FTREF/>
                     The Ether Funds provide investors with cost-efficient alternatives that allow a level of participation in the ether market through the securities market.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes each Ether Fund satisfies the Exchange's initial listing standards set forth in Exchange Rule 402(b).
                    <SU>10</SU>
                    <FTREF/>
                     The Exchange notes that the Ether Funds also satisfy the listing standard applied to ETFs traded on the Exchange that they be available for creation and redemption each business day as set forth in Exchange Rule 402(i)(5)(i)(B).
                    <SU>11</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Subparagraphs a. and b. of Exchange Rule 402 provide for guidelines to be used by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         Exchange Rule 402(i)(5)(i)(B) requires that ETFs 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 
                        <PRTPAGE/>
                        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.
                    </P>
                </FTNT>
                <PRTPAGE P="16196"/>
                <P>
                    First, each of the Ether Funds satisfy the criteria and guidelines set forth in Exchange Rule 402(a). Pursuant to Exchange Rule 402(a), a security on which options may be listed and traded on the Exchange must be 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.
                    <SU>12</SU>
                    <FTREF/>
                     Each of the Ether Funds is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>13</SU>
                    <FTREF/>
                     The Exchange believes each Ether Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Exchange Rule 402(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) 
                        <E T="03">and</E>
                         (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>
                    Pursuant to the data presented in the NYSE American Ether Approval Order,
                    <SU>14</SU>
                    <FTREF/>
                     as of November 29, 2024, the Ether Funds had the following number of shares outstanding (and corresponding market capitalization):
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s100,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Shares
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">
                            Market
                            <LI>capitalization</LI>
                            <LI>(11/29/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>$5,425,852,635</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>1,547,003,157</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>430,886,200</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As shown above, each of the Ether Funds had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to Exchange Rule 402(b)(1).
                    <SU>15</SU>
                    <FTREF/>
                     The Exchange believes this demonstrates that each Ether Fund is characterized by a substantial number of outstanding shares.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         The Exchange notes that on November 19, 2024, ETH underwent a reverse stock split, reducing the number of shares outstanding—and increasing the share price—tenfold.
                    </P>
                </FTNT>
                <P>
                    Further, according to the NYSE American Ether Approval Order,
                    <SU>16</SU>
                    <FTREF/>
                     the below table contains information regarding the number of beneficial holders of the Ether Funds as of December 31, 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s25,10">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Beneficial
                            <LI>holders</LI>
                            <LI>(as of</LI>
                            <LI>12/31/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>112,320</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>17,396</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>5,992</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As this table shows, each Ether Fund has significantly more than 2,000 beneficial holders (approximately 56, 9, and 3 times more, respectively), which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to pursuant to Exchange Rule 402(b)(2).
                    <SU>17</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the shares of each Ether Fund are widely held.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         The number of beneficial holders of ETH may have been impacted by the 10:1 reverse stock split, as investors with fewer than 10 shares would have received a cash payout. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes that, based on trading volume since the Funds began trading on July 23, 2024, shares of the Ether Funds are actively traded. In particular, according to the NYSE American Ether Approval Order,
                    <SU>18</SU>
                    <FTREF/>
                     the table below sets forth the total trading volume (by shares and notional) from the inception of trading through either November 29, 2024 (for ETHE and ETH) or December 31, 2024 (for ETHW). In addition, the below table illustrates the average daily volume (“ADV”) over the 30-day period of either October 29, 2024—through November 29, 2024 (for ETHE and ETH) or November 29, 2024—through December 31, 2024 (for ETHW).
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31/24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,15,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Trading volume
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Trading volume
                            <LI>(notional $)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(Shares)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>427,312,540</ENT>
                        <ENT>$10,289,781,199</ENT>
                        <ENT>4,237,811</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>172,400,020</ENT>
                        <ENT>4,614,428,230</ENT>
                        <ENT>3,065,796</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>44,477,060</ENT>
                        <ENT>959,491,343</ENT>
                        <ENT>291,627</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As demonstrated above, even though the Ether Funds have been trading for less than one year, the trading volume for each Ether Fund is substantially higher than 2,400,000 shares (roughly 178, 72, and 16 times that amount), which is the minimum 12-month volume the Exchange generally requires for a security in order to list options on that security as set forth in Exchange Rule 402(b). The Exchange believes this data demonstrates that each Ether Fund is characterized by a substantial number of outstanding shares that are actively traded.</P>
                <P>
                    In addition to satisfying the Exchange's initial listing standards, options on the Ether Funds will be subject to the Exchange's continued listing standards as set forth in Exchange Rule 403(g).
                    <SU>20</SU>
                    <FTREF/>
                     Pursuant to Exchange Rule 403(g), the Exchange will not open for trading any additional series of option contracts covering a fund traded on the Exchange if such fund ceases to be an “NMS stock” as provided for Exchange Rule 402(b) or the fund is halted from trading on its primary market.
                    <SU>21</SU>
                    <FTREF/>
                     Additionally, options on funds traded on the Exchange may be 
                    <PRTPAGE P="16197"/>
                    subject to the suspension of opening transactions as follows: (1) the fund no longer meets the terms of Exchange Rule 403(b); (2) following the initial twelve-month period beginning upon the commencement of trading of the fund, there are fewer than 50 record and/or beneficial holders of the fund for 30 or more consecutive trading days; (3) the value of the underlying commodity 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 on the Exchange inadvisable.
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         The Exchange proposes to amend Exchange Rule 402(i)(4) to include the Bitcoin Funds in the list of ETPs deemed “Exchange-Traded Fund Shares”—of ETFs—for purposes of the continued listing standards set forth in Exchange Rule 403(g). 
                        <E T="03">See</E>
                         proposed Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 403(g).
                    </P>
                </FTNT>
                <P>
                    Options on each Ether Fund will be physically settled contracts with American-style exercise.
                    <SU>22</SU>
                    <FTREF/>
                     Consistent with Exchange Rule 404, which governs the opening of options series on a specific underlying security (including ETFs and ETPs), the Exchange will open at least one expiration month for options on each Ether Fund 
                    <SU>23</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on Ether Funds for trading on a weekly,
                    <SU>24</SU>
                    <FTREF/>
                     monthly,
                    <SU>25</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>26</SU>
                    <FTREF/>
                     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.
                    <SU>27</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 401 (Rights and Obligations of Holders and Writers), which provides that the rights and obligations of holders and writers of option contracts of any class of options dealt in on the Exchange shall be as set forth in the Rules of the Options Clearing Corporation (“OCC”). 
                        <E T="03">See also</E>
                         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: 
                        <E T="03">https://www.theocc.com/getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/occrules.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404. The monthly expirations are subject to certain listing criteria for underlying securities described within Exchange Rule 402. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Exchange Rule 404(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 404(e), 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 406.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Exchange Rule 404(g), which governs strike prices of series of options on ETFs, the interval between strike prices of series of options on Ether Funds will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>28</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>29</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>30</SU>
                    <FTREF/>
                     and the $2.50 Strike Price Program.
                    <SU>31</SU>
                    <FTREF/>
                     Pursuant to Exchange Rule 510, where the price of a series of an Ether Fund 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.
                    <SU>32</SU>
                    <FTREF/>
                     Any and all new series of Ether Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Exchange Rules 404 and 510, as applicable. Further, the Exchange notes that Exchange Rule 1502, which governs margin requirements applicable to the trading of all options on the Exchange, including options on ETFs and ETPs, will also apply to the trading of Ether Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Exchange Rules 404, Interpretation and Policies .02, .03, and .13, specifically set forth intervals between strike prices on Short Term Option Series, Quarterly Options Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(f).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 510(a). If options on an Ether Fund are eligible to participate in the Penny Interval Program, the minimum increment of $0.01 below $3.00 and $0.50 above $3.00 would apply. 
                        <E T="03">See</E>
                         Exchange Rule 510(a)(3). 
                        <E T="03">See also</E>
                         Exchange Rule 510(c) (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>Position and exercise limits for options on ETFs, including options on Ether Funds, are determined pursuant to MIAX Rules 307 and 309, respectively, as incorporated by reference into the MIAX Sapphire Rulebook. Position and exercise limits for ETF options vary according to the number of outstanding shares and the trading volumes of the underlying ETF over the past six months, where the largest in capitalization and the most frequently traded ETFs have an option position and exercise limit of 250,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market; and smaller capitalization ETFs have position and exercise limits of 200,000, 75,000, 50,000 or 25,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market. Notwithstanding the position limits in the Exchange's affiliate MIAX Rule 307(d) and exercise limits in the Exchange's affiliate MIAX Rule 309, the Exchange proposes the position and exercise limits for the options on the Ether Funds to be 25,000 contracts on the same side pursuant to proposed Interpretation and Policy .01 to the Exchange's affiliate MIAX Rule 307 and Interpretation and Policy .01 to the Exchange's affiliate MIAX Rule 309.</P>
                <P>Options on the Ether Funds will trade in the same manner as any other ETF or ETP options on the Exchange. The Exchange Rules that currently apply to the listing and trading of options on the Exchange, including, for example, Rules that govern listing criteria, expiration and exercise prices, minimum increments, margin requirements, customer accounts and trading halt procedures will apply to the listing and trading of Ether Funds on the Exchange in the same manner as they apply to all other ETFs and ETPs that are listed and traded on the Exchange, including the precious metal-backed commodity ETPs already deemed appropriate for options trading on the Exchange pursuant to Exchange Rule 404.</P>
                <P>The Exchange notes that options on Ether Funds would not be available for trading until The Options Clearing Corporation (“OCC”) represents to the Exchange that it is fully able to clear and settle such options. The Exchange has also analyzed its capacity and represents that it and The Options Price Reporting Authority (“OPRA”) have the necessary systems capacity to handle the additional traffic associated with the listing of options on Ether Funds. The Exchange believes any additional traffic that would be generated from the trading of options on Ether Funds would be manageable. The Exchange represents that Exchange members will not have a capacity issue as a result of this proposed rule change.</P>
                <P>
                    The Exchange represents that the same surveillance procedures applicable to all other options currently listed and traded on the Exchange will apply to options on Ether Funds, and that it has the necessary systems capacity to support the new option series. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ether Funds. The Exchange believes that its 
                    <PRTPAGE P="16198"/>
                    surveillance procedures are adequate to properly monitor the trading of options on Ether Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by the Exchange's market surveillance staff, the Exchange would also be able to obtain information regarding trading in shares of the Ether Funds on other exchanges though ISG. Further, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”). Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances.
                    <SU>33</SU>
                    <FTREF/>
                     The Exchange notes that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds.
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) 
                        <E T="03">and</E>
                         17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO. Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>The underlying shares of spot ether ETPs, including the Ether Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based ETPs,</P>
                <EXTRACT>
                    <P>
                        [e]ach Exchange has a comprehensive surveillance sharing agreement with the [Chicago Mercantile Exchange (“CME”)] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ethereum futures market.
                        <SU>34</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See</E>
                             Ether ETP Approval Order, 89 FR at 46938.
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that, given the consistently high correlation between the CME ether futures market and the spot ether market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [ether ETPs].” 
                    <SU>35</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR at 46939.
                    </P>
                </FTNT>
                <P>
                    In light of surveillance measures related to both options and futures as well as the Ether Funds,
                    <SU>36</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds. Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ether Funds.
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order.
                    </P>
                </FTNT>
                <P>Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on the Ether Funds will be available via Options Price Reporting Authority (“OPRA”) and major market data vendors.</P>
                <P>
                    The Exchange believes that offering options on Ether Funds will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of ether and hedging vehicle to meet their investment needs in connection with Ether-related products and positions. The Exchange expects investors will transact in options on Ether Funds in the unregulated over-the-counter (“OTC”) options market,
                    <SU>37</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed 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 Ether Funds 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 Exchange notes that the ETPs that hold precious metal commodities on which the Exchange may already list and trade options are trusts structured in substantially the same manner as Ether Funds 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 options on any ETFs or ETPs that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals) that it currently lists and trades on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         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.
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that applicable Exchange rules will require that customers receive appropriate disclosure before trading options in Ether Funds.
                    <SU>38</SU>
                    <FTREF/>
                     Further, brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>39</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">See</E>
                         Exchange's affiliate MIAX Rules 1307(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See</E>
                         Exchange's affiliate MIAX Rule 1309.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>40</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>41</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>42</SU>
                    <FTREF/>
                     requirement that 
                    <PRTPAGE P="16199"/>
                    the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>In particular, the Exchange believes that the proposal to list and trade options on the Ether Funds 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 Ether Funds will provide investors with a greater opportunity to realize the benefits of utilizing options on Ether Funds, including cost efficiencies and increased hedging strategies.</P>
                <P>
                    The Exchange believes that offering Ether Fund 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 ether and with ether-related products and positions. Additionally, the Exchange's offering of Ether Fund 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 ETPs,
                    <SU>43</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as Ether Funds and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     Ether rather than precious metals) and for which the Exchange has not identified any issues with the continued listing and trading of commodity-backed ETP options it currently lists for trading.
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>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 the Ether Funds 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. Additionally, as demonstrated above, each Ether Fund is characterized by a substantial number of shares that are widely held and actively traded. Ether Fund 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 options on ETFs, including permissible expirations, strike prices and minimum increments, and applicable position and exercise limits (including as proposed in the filing submitted by Exchange's affiliate, MIAX), and margin requirements, will govern the listing and trading of options on Ether Funds in the same manner.</P>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Ether Fund options. 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 options, including Ether Fund options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ether Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ether Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by the Exchange's market surveillance staff, the Exchange would also be able to obtain information regarding trading in shares of the Ether Funds on other exchanges though ISG. Further, the Exchange has a Regulatory Services Agreement with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds.</P>
                <P>
                    The underlying shares of spot ether ETPs, including the Ether Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>44</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME ethereum futures market and the spot ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>45</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Ether Funds,
                    <SU>46</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on ether ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR, at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR, at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2023-70), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2023-70/srnysearca202370-475871-1363474.pdf;</E>
                         Amendment No. 1 to Proposed Rule Change to List and Trade Shares of the Bitwise Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024-31), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-31/srnysearca202431-475891-1363514.pdf;</E>
                         and Amendment No.2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum Mini ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024-44), filed May 22, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-44/srnysearca202444-476231-1364174.pdf.</E>
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that this proposal will remove impediments to and perfect the mechanism of a free and open market and a national market 
                    <PRTPAGE P="16200"/>
                    system and, in general, protect investors because applicable Exchange rules will require that customers receive appropriate disclosure before trading options in Ether Funds 
                    <SU>47</SU>
                    <FTREF/>
                     and will require that brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>48</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         Exchange's affiliate MIAX Rules 1307(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         Exchange's affiliate MIAX Rule 1309.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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. In this regard and as indicated above, the Exchange notes that the rule change is being proposed as a competitive response to the filing submitted by NYSE American.
                    <SU>49</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    <E T="03">Intramarket Competition:</E>
                     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 options on the Ether Funds 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, Ether Fund options will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. 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 Ether Funds. Also, and as stated above, the Exchange already lists options on other commodity-based ETPs.
                    <SU>50</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i).
                    </P>
                </FTNT>
                <P>
                    <E T="03">Intermarket Competition:</E>
                     The Exchange does not believe that the proposal to list and trade options on Ether Funds 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 the Ether Funds 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 the Ether Funds. The Exchange notes that listing and trading Ether Funds 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.
                </P>
                <P>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 the Ether Funds 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 ether prices and ether-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>Written comments were neither solicited nor received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>51</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>52</SU>
                    <FTREF/>
                     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 
                    <SU>53</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>54</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>55</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>56</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Ethereum Funds.
                    <SU>57</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Ethereum Funds, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Ethereum Funds. The proposal also establishes position and exercise limits for options on the Ethereum Funds and provides information regarding the surveillance procedures that will apply to Ethereum Fund options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Ethereum Fund options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>58</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025) (Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to Amend Exchange Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust) (SR-NYSEAMER-2025-45).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>
                    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.
                    <PRTPAGE P="16201"/>
                </P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-SAPPHIRE-2025-21 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-SAPPHIRE-2025-21. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-SAPPHIRE-2025-21 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>59</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>59</SU>
                             17 CFR 200.30-3(a)(12), (59).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06552 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102827; File No. SR-PEARL-2025-14]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, To List and Trade Options on the iShares Ethereum Trust</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 9, 2025, MIAX PEARL, LLC (“MIAX Pearl” or the “Exchange”) filed with the Securities and Exchange Commission (“Commission”) a proposed rule change as described in Items I and II below, which Items have been prepared by MIAX Pearl. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities, to list and trade options on trade options on the iShares Ethereum Trust.</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://www.miaxglobal.com/markets/us-equities/pearl-equities/rule-filings,</E>
                     at MIAX Pearl's principal office, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its filing with the Commission, MIAX Pearl 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. MIAX Pearl has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities,
                    <SU>3</SU>
                    <FTREF/>
                     to allow the Exchange to list and trade options on the Trust, designating it as appropriate for options trading on the Exchange.
                    <SU>4</SU>
                    <FTREF/>
                     This is a competitive filing based on a similar proposal submitted by Nasdaq ISE, LLC (“ISE”), which was approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange notes that its affiliate options exchanges, Miami International Securities Exchange, LLC (“MIAX”) and MIAX Sapphire, LLC (“MIAX Sapphire”), submitted (or will submit) substantively similar proposals. The Exchange notes that all the rules of Chapter III of MIAX, including Exchange Rules 307 and 309, are incorporated by reference into the MIAX Pearl and MIAX Sapphire rulebooks. The Exchange also notes that all of the rules of Chapter III of MIAX, including Exchange Rules 307 and 309, and the rules of Chapter IV of MIAX, including Exchange Rule 402, are incorporated by reference into the MIAX Emerald, LLC (“MIAX Emerald”) rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         See Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; 
                        <E T="03">and</E>
                         SRCboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ethereum ETP Approval Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102798 (April 9, 2025) (Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on the iShares Ethereum Trust) (SR-ISE-2024-35) (“ISE Ether Approval Order”).
                    </P>
                </FTNT>
                <P>Current Exchange Rule 402(i)(4) provides that securities deemed appropriate for options trading include shares or other securities (“Exchange Traded Fund Shares” or “ETFs”) that are traded on a national securities exchange and are defined as “NMS stock” under Rule 600 of Regulation NMS, and that meet specified criteria enumerated in the rule. Subparagraph (4) of Exchange Rule 402(i) provides that such shares or other securities:</P>
                <EXTRACT>
                    <P>
                        (4) are issued by the SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Silver ETF Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Palladium ETF Trust, the Aberdeen Standard Platinum ETF Trust, the Goldman Sachs Physical Gold ETF, the Sprott Physical Gold 
                        <PRTPAGE P="16202"/>
                        Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, or the ARK 21 Shares Bitcoin ETF ; or 
                    </P>
                </EXTRACT>
                <P>
                    In addition to the aforementioned requirements, Exchange Rule 402(i)(5)(i)(A) or (B) must be met to list options on ETFs.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Exchange Rule 402(i)(5)(i)(A) or (B) states that the Exchange-Traded Fund Shares either (i) meet the criteria and guidelines set forth in paragraphs (a) and (b) described herein; or (ii) the Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares, all as described in the Exchange-Traded Fund Shares' prospectus.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposal</HD>
                <P>
                    The Exchange proposes to amend Exchange Rule 402(i)(4) to expand the list of securities that are appropriate for options trading on the Exchange to include the Trust.
                    <SU>7</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Specifically, the Exchange proposes to amend Exchange Rule 402(i)(4) to include the name of the Trust to enable options to be listed on the Trust on the Exchange.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">
                    Description of the Trust 
                    <SU>8</SU>
                    <FTREF/>
                </HD>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         SR-NASDAQ-2023-045 for a complete description of the Trust.
                    </P>
                </FTNT>
                <P>The shares are issued by the Trust, a Delaware statutory trust. The Trust will operate pursuant to a trust agreement (the “Trust Agreement”) between the Sponsor, BlackRock Fund Advisors (the “Trustee”) as the trustee of the Trust and will appoint Wilmington Trust, National Association, as Delaware Trustee of the Trust (the “Delaware Trustee”) by such time that the Registration Statement is effective. The Trust issues shares representing fractional undivided beneficial interests in its net assets. The assets of the Trust will consist only of Ether (“Ether” or “Ethereum”) held by a custodian on behalf of the Trust, except under limited circumstances when transferred through the Trust's prime broker temporarily (described below), and cash. Neither the Trust, nor the Sponsor, nor the Ether Custodian (as defined below), nor any other person associated with the Trust will, directly or indirectly, engage in action where any portion of the Trust's Ether becomes subject to the Ethereum proof-of-stake validation or is used to earn additional Ether or generate income or other earnings. Coinbase Custody Trust Company, LLC (the “Ether Custodian”), is the custodian for the Trust's Ether holdings, and maintains a custody account for the Trust (“Custody Account”); Coinbase, Inc. (the “Prime Execution Agent”), an affiliate of the Ether Custodian, is the prime broker for the Trust and maintains a trading account for the Trust (“Trading Account”); and The Bank of New York Mellon is the custodian for the Trust's cash holdings (the “Cash Custodian” and together with the Ether Custodian, the “Custodians”) and the administrator of the Trust (the “Trust Administrator”). Under the Trust Agreement, the Trustee may delegate all or a portion of its duties to any agent, and has delegated the bulk of the day-today responsibilities to the Trust Administrator and certain other administrative and recordkeeping functions to its affiliates and other agents. The Trust is not an investment company registered under the Investment Company Act of 1940, as amended.</P>
                <P>The investment objective of the Trust is to reflect generally the performance of the price of Ether. The Trust seeks to reflect such performance before payment of the Trust's expenses and liabilities. The Shares are intended to constitute a simple means of making an investment similar to an investment in Ether through the public securities market rather than by acquiring, holding and trading ether directly on a peer-to-peer or other basis or via a digital asset platform. The Shares have been designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in Ether, while at the same time having an intrinsic value that reflects, at any given time, the investment exposure to the Ether owned by the Trust at such time, less the Trust's expenses and liabilities. Although the Shares are not the exact equivalent of a direct investment in Ether, they provide investors with an alternative method of achieving investment exposure to Ether through the public securities market, which may be more familiar to them.</P>
                <HD SOURCE="HD3">Custody of the Trust's Ether and Creation and Redemption</HD>
                <P>
                    An investment in the shares is backed by ether held by the Ether Custodian on behalf of the Trust. All of the Trust's Ether will be held in the Custody Account, other than the Trust's Ether which is temporarily maintained in the Trading Account under limited circumstances, 
                    <E T="03">i.e.,</E>
                     in connection with creation and redemption Basket 
                    <SU>9</SU>
                    <FTREF/>
                     activity or sales of Ether deducted from the Trust's holdings in payment of Trust expenses or the Sponsor's fee (or, in extraordinary circumstances, upon liquidation of the Trust). The Custody Account includes all of the Trust's Ether held at the Ether Custodian, but does not include the Trust's Ether temporarily maintained at the Prime Execution Agent in the Trading Account from time to time. The Ether Custodian will keep all of the private keys associated with the Trust's Ether held in the Custody Account in “cold storage”.
                    <SU>10</SU>
                    <FTREF/>
                     The hardware, software, systems, and procedures of the Ether Custodian may not be available or cost effective for many investors to access directly.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The Trust issues and redeems Shares only in blocks of 40,000 or integral multiples thereof. A block of 40,000 shares is called a “Basket.” These transactions take place in exchange for ether.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         The term “cold storage” refers to a safeguarding method by which the private keys corresponding to the Trust's ether are generated and stored in an offline manner, subject to layers of procedures designed to enhance security. Private keys are generated by the Ether Custodian in offline computers that are not connected to the internet so that they are more resistant to being hacked.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot Ether as well as a hedging vehicle to meet their investment needs in connection with Ether products and positions. Similar to other commodity ETFs in which options may be listed on the Exchange (
                    <E T="03">e.g.</E>
                     SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Physical Gold Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, or the ARK 21Shares Bitcoin ETF),
                    <SU>11</SU>
                    <FTREF/>
                     the proposed ETF is a trust that essentially offers the same objectives and benefits to investors.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>
                    Options on the Trust will trade in the same manner as any other ETF options on the Exchange. 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 (including as proposed in the filing submitted by Exchange's affiliate, MIAX), margin requirements, customer accounts and trading halt procedures will apply to the listing and trading of options on the Trust on the 
                    <PRTPAGE P="16203"/>
                    Exchange. Today, these rules apply to options on the various commodities ETFs deemed appropriate for options trading on the Exchange pursuant to current Exchange Rule 402(i)(4).
                </P>
                <P>The Exchange's initial listing standards for ETFs on which options may be listed and traded on the Exchange will apply to the Trust. The initial listing standard as set forth in Exchange Rule 402(a) provides that</P>
                <EXTRACT>
                    <FP>Underlying securities with respect to which put or call options contracts are approved for listing and trading on the Exchange must meet the following criteria: (1) the security must be registered and be an “NMS stock” as defined in Rule 600 of Regulation NMS under the Exchange Act; and (2) the security shall be characterized by a substantial number of outstanding shares that are widely held and actively traded.</FP>
                </EXTRACT>
                <P>Pursuant to Exchange Rule 402, ETFs on which options may be listed and traded must satisfy the listing standards set forth in Exchange Rule 402(5). Specifically, the Trust must:</P>
                <EXTRACT>
                    <P>
                        (1) meet the criteria and standards set forth in Exchange Rule 402(a) or 402(b),
                        <SU>12</SU>
                        <FTREF/>
                         or
                    </P>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             Subparagraphs a. and b. of Exchange Rule 402 provide for guidelines to be used by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                        </P>
                    </FTNT>
                </EXTRACT>
                <EXTRACT>
                    <P>(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.</P>
                </EXTRACT>
                <P>
                    Options on the Trust will also be subject to the Exchange's continued listing standards set forth in Exchange Rule 403(g). Specifically, options approved for trading pursuant to Exchange Rule 402(i) will not 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 cease to be an NMS stock or the ETFs, are delisted from trading pursuant to Exchange Rule 403(b)(4), or the ETFs are halted or suspended from trading in their primary market.
                    <SU>13</SU>
                    <FTREF/>
                     In addition, the Exchange shall consider the suspension of opening transactions in any series of options of the class covering ETFs in any of the following circumstances:
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 403(g).
                    </P>
                </FTNT>
                <EXTRACT>
                    <P>
                        (1) in the case of options covering ETFs approved for trading under Exchange Rule 402(i)(5)(i)(A), in accordance with the terms of paragraphs (b)(1), (2), and (3) of Exchange Rule 403; 
                        <SU>14</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             Exchange Rules 403(b)(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 Act.
                        </P>
                    </FTNT>
                </EXTRACT>
                <EXTRACT>
                    <P>(2) in the case of options covering ETFs approved for trading under Exchange Rule 402(i)(5)(i)(B), 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;</P>
                    <P>(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 ETFs are based is no longer calculated or available; or</P>
                    <P>(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.</P>
                </EXTRACT>
                <P>
                    Options on the Trust would be physically settled contracts with American-style exercise.
                    <SU>15</SU>
                    <FTREF/>
                     Consistent with current Exchange Rule 404, 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 the Trust 
                    <SU>16</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on the Trust for trading on a weekly,
                    <SU>17</SU>
                    <FTREF/>
                     monthly,
                    <SU>18</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>19</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) that expire from 12 to 39 months from the time they are listed.
                    <SU>20</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 401, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(b). The monthly expirations are subject to certain listing criteria for underlying securities described within Exchange Rule 404 and its Interpretations and Policies. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Exchange Rule 404(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 404(e), 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretations and Policy .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretations and Policy .13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretations and Policy .03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 406.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Exchange Rule 404, Interpretations and Policies .06, which governs strike prices of series of options on ETFs, the interval between strike prices of series of options on ETFs approved for options trading pursuant to Exchange Rule 402(i) shall be fixed at a price per share which is reasonably close to the price per share at which the underlying security is traded in the primary market at or about the same time such series of options is first open for trading on the Exchange, or at such intervals as may have been established on another options exchange prior to the initiation of trading on the Exchange. With respect to the Short Term Options Series or Weekly Program, during the month prior to expiration of an option class that is selected for the Short Term Option Series Program, the strike price intervals for the related non-Short Term Option (“Related non-Short Term Option”) shall be the same as the strike price intervals for the Short Term Option.
                    <SU>21</SU>
                    <FTREF/>
                     Specifically, the Exchange may open for trading Short Term Option Series at strike price intervals of (i) $0.50 or greater where the strike price is less than $100, and $1 or greater where the strike price is between $100 and $150 for all option classes that participate in the Short Term Options Series Program; (ii) $0.50 for option classes that trade in one dollar increments and are in the Short Term Option Series Program; or (iii) $2.50 or greater where the strike price is above $150.
                    <SU>22</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>23</SU>
                    <FTREF/>
                     the 
                    <PRTPAGE P="16204"/>
                    $0.50 Strike Program,
                    <SU>24</SU>
                    <FTREF/>
                     and the $2.50 Strike Price Program.
                    <SU>25</SU>
                    <FTREF/>
                     Pursuant to Exchange Rule 510, where the price of a series of options on the Trust 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 
                    <SU>26</SU>
                    <FTREF/>
                     consistent with the minimum increments for options on other ETFs listed on the Exchange. Any and all new series of Trust options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Exchange Rules 404 and 510, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretations and Policies .02(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(f).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 510.
                    </P>
                </FTNT>
                <P>Trust 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 (including as proposed in the filing submitted by Exchange's affiliate, MIAX), margin requirements, customer accounts and trading halt procedures will apply to the listing and trading of Trust options 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 402(i)(4).</P>
                <P>Position and exercise limits for options on ETFs, including options on the Trust, are determined pursuant to MIAX Rules 307 and 309, respectively, as incorporated by reference into the MIAX Pearl Rulebook. Position and exercise limits for ETF options vary according to the number of outstanding shares and the trading volumes of the underlying ETF over the past six months, where the largest in capitalization and the most frequently traded ETFs have an option position and exercise limit of 250,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market; and smaller capitalization ETFs have position and exercise limits of 200,000, 75,000, 50,000 or 25,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market. The Exchange further notes that MIAX Rule 1502, which governs margin requirements applicable to trading on the Exchange, including options on ETFs, will also apply to the trading of the Trust options, as MIAX Chapter XV (Margins) is also incorporated by reference into the MIAX Pearl Rulebook. Notwithstanding the position limits in MIAX Rule 307(d) and exercise limits in MIAX Rule 309, the Exchange proposes the position and exercise limits for the Trust to be 25,000 contracts on the same side pursuant to proposed Interpretation and Policy .01 to MIAX Rule 307 and proposed Interpretation and Policy .01 to MIAX Rule 309.</P>
                <P>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 the Trust. Also the Exchange represents 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 the proposed Trust options.</P>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to the Trust options that it applies to the Exchange's other options products.
                    <SU>27</SU>
                    <FTREF/>
                     The Exchange's staff will have access to the surveillance programs conducted by its affiliate exchanges, MIAX and MIAX Sapphire, with respect to trading in the shares of the underlying Trust when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining surveillance data from MIAX and MIAX Sapphire, the Exchange will be able to obtain information regarding trading in the shares of the underlying Trusts from ISE and other markets through ISG. In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”). Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>28</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         The surveillance program includes real-time patterns for price and volume movements and post-trade surveillance patterns (
                        <E T="03">e.g.,</E>
                         spoofing, marking the close, pinging, phishing).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>The underlying shares of spot Ethereum exchange-traded products (“ETPs”), including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, </P>
                <EXTRACT>
                    <FP>
                        [e]ach Exchange has a comprehensive surveillance sharing agreement with the [Chicago Mercantile Exchange (“CME”)] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME Ethereum futures market.
                        <SU>29</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             
                            <E T="03">See</E>
                             Ethereum ETP Approval Order, 89 FR at 46938.
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that in the Ethereum ETP Approval Order, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>30</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the Trust,
                    <SU>31</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust. Additionally, the 
                    <PRTPAGE P="16205"/>
                    Exchange may obtain trading information via ISG from other exchanges who are members or affiliates of the ISG.
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46939.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>The Exchange has also analyzed its capacity and represents that it believes the Exchange and 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 the Trust up to the number of expirations currently permissible under the Rules. Because the proposal is limited to one class, the Exchange believes any additional traffic that may be generated from the introduction of the Trust options will be manageable.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>32</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>33</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>34</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>In particular, the Exchange believes that the proposal to list and trade options on the Trust 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 the Trust will provide investors with a greater opportunity to realize the benefits of utilizing options on an ETF based on spot Ethereum, including cost efficiencies and increased hedging strategies. The Exchange believes that offering options on a competitively priced ETF based on spot Ethereum will benefit investors by providing them with an additional, relatively lower-cost risk management tool, allowing them to manage, more easily, their positions and associated risks in their portfolios in connection with exposure to spot Ethereum. Today, the Exchange lists options on other commodity ETFs structured as a trust, which essentially offer the same objectives and benefits to investors, and for which the Exchange has not identified any issues with the continued listing and trading of options on those ETFs.</P>
                <P>The Exchange also believes the proposal to permit options on the Trust will remove impediments to and perfect the mechanism of a free and open market and a national market system, because options on the Trust will comply with current Exchange Rules. Options on the Trust 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 pursuant to Exchange Rule 402(i)(4). Additionally, as demonstrated above, the Trust is characterized by a substantial number of shares that are widely held and actively traded. Further, Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (including as proposed in the filing submitted by Exchange's affiliate, MIAX), and margin requirements, will govern the listing and trading of options on the Trust.</P>
                <P>The Exchange believes the proposed position and exercise limits, as proposed in the filing submitted by Exchange's affiliate, MIAX, are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits for options for the Trust is 25,000 contracts, which is currently the lowest limit applicable to any equity options (including ETF options) and the position and exercise limits that apply to comparable ETFs that hold Bitcoin. The Exchange believes the proposed position and exercise limits, as proposed in the filing submitted by Exchange's affiliate, MIAX, are extremely conservative for the Trust options given the trading volume and outstanding shares for the Trust.</P>
                <P>
                    The Exchange represents that it has the necessary systems capacity to support the new Trust options. As discussed above, 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 Trust options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on the Trust. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on the Trust. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on the Trust in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Trust and, as appropriate, would review activity in the underlying Fund when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining surveillance data from MIAX and MIAX Sapphire, the Exchange will be able to obtain information from Nasdaq, ISE, Cboe and other markets through ISG. In addition, the Exchange has a Regulatory Services Agreement with FINRA. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>35</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO 
                        <PRTPAGE/>
                        of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <PRTPAGE P="16206"/>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group.
                    <SU>36</SU>
                    <FTREF/>
                     This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>37</SU>
                    <FTREF/>
                     The Exchange states that in the Ethereum ETP Approval Order, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>38</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46941.
                    </P>
                </FTNT>
                <P>
                    In light of surveillance measures related to both options and futures as well as the underlying Trust,
                    <SU>39</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Options on the Trust must satisfy the initial listing standards and continued listing standards currently in the Exchange Rules, applicable to options on all ETFs, including options on other commodity ETFs already deemed appropriate for options trading on the Exchange pursuant to Exchange Rule 402(i)(4).
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust.</P>
                <P>
                    Finally, the Commission has previously approved the listing and trading of options on other cryptocurrency backed commodity ETFs structured as trusts.
                    <SU>40</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 101701 (November 21, 2024), 89 FR 93672 (November 27, 2024) (SR-PEARL-2024-52) (Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange To Allow the Exchange To List and Trade Options on the iShares Bitcoin Trust); 101719 (November 22, 2024), 89 FR 94784 (November 29, 2024) (SR-PEARL-2024-53) (Notice Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange To Allow the Exchange To List and Trade Options on the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, and the Bitwise Bitcoin ETF); 101718 (November 22, 2024), 89 FR 94812 (November 29, 2024) (SR-PEARL-2024-54) (Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange To Allow the Exchange To List and Trade Options on the Fidelity Wise Origin Bitcoin Fund (the “Fidelity Fund”) and the ARK 21Shares Bitcoin ETF (the “ARK 21 Fund”)).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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. In this regard and as indicated above, the Exchange notes that the rule change is being proposed as a competitive response to the filing submitted by ISE.
                    <SU>41</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    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 options on the Trust will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. Moreover, options on the Trust will be subject to Exchange Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (including as proposed in the filing submitted by Exchange's affiliate, MIAX), and margin requirements. Also, and as stated above, the Exchange already lists options on other cryptocurrency backed commodity ETFs structured as trusts.
                    <SU>42</SU>
                    <FTREF/>
                     Further, the Trust would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other ETF for the Exchange to continue listing options on it.
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposal to list and trade options on the Trust 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 the Trust 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 Trust. The Exchange notes that listing and trading Trust 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.</P>
                <P>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 the Trust 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>Written comments were neither solicited nor received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>43</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>44</SU>
                    <FTREF/>
                     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 
                    <PRTPAGE P="16207"/>
                    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 
                    <SU>45</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>46</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has waived the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>47</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>48</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the iShares Ethereum Trust (the “Trust”).
                    <SU>49</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Trust, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Trust. The proposal also establishes position and exercise limits for options on the Trust and provides information regarding the surveillance procedures that will apply to Trust options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Trust options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>50</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov</E>
                    . Please include file number SR-PEARL-2025-14 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-PEARL-2025-14. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-PEARL-2025-14 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>51</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>51</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06505 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102853; File No. 10-244]</DEPDOC>
                <SUBJECT>In the Matter of the Application of Green Impact Exchange, LLC for Registration as a National Securities Exchange; Findings, Opinion, and Order of the Commission</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <HD SOURCE="HD1">I. Introduction and Procedural History</HD>
                <P>
                    On May 9, 2024, Green Impact Exchange, LLC (“GIX” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) a Form 1 application (“Form 1”) under the Securities Exchange Act of 1934 (“Act”), seeking registration as a national securities exchange under Section 6 of the Act.
                    <SU>1</SU>
                    <FTREF/>
                     The Commission received comments on the Form 1.
                    <SU>2</SU>
                    <FTREF/>
                     On October 21, 2024, the Commission instituted proceedings pursuant to Section 19(a)(1)(B) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     to determine whether to grant or deny GIX's application for registration as a national securities exchange under Section 6 of the Act.
                    <SU>4</SU>
                    <FTREF/>
                     After issuance of the OIP, the Commission received a letter from GIX responding to comments.
                    <SU>5</SU>
                    <FTREF/>
                     On January 16, 2025, the Commission extended, pursuant to Section 19(a)(1)(B) of the Act,
                    <SU>6</SU>
                    <FTREF/>
                     the time period for granting or denying the Form 1 for an additional 90 days, until April 19, 2025.
                    <SU>7</SU>
                    <FTREF/>
                     On February 4, 2025, GIX 
                    <PRTPAGE P="16208"/>
                    filed an amendment to the Form 1 (“Amendment No. 1”).
                    <SU>8</SU>
                    <FTREF/>
                     On February 28, 2025, GIX filed another amendment to the Form 1 (“Amendment No. 2”), which replaced and superseded Amendment No. 1 in its entirety.
                    <SU>9</SU>
                    <FTREF/>
                     Amendment No. 2 was published for comment in the 
                    <E T="04">Federal Register</E>
                     on March 12, 2025.
                    <SU>10</SU>
                    <FTREF/>
                     On March 6, 2025, GIX consented, pursuant to Section 19(a)(1)(B) of the Act,
                    <SU>11</SU>
                    <FTREF/>
                     to an extension of the time period for granting or denying the Form 1 for an additional 90 days, until July 18, 2025.
                    <SU>12</SU>
                    <FTREF/>
                     On March 17, 2025, GIX filed Amendment No. 3 to the Form 1 (“Amendment No. 3”).
                    <SU>13</SU>
                    <FTREF/>
                     The Commission received no comments on the Form 1, as amended by Amendment Nos. 2 and 3.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78f. The Form 1 is available on the Commission's website at: 
                        <E T="03">https://www.sec.gov/rules-regulations/other-commission-orders-notices-information/green-impact-exchange-llc-form-1-application-exhibits. See also</E>
                         15 U.S.C. 78s(a)(1) (stating that the Commission shall, “[w]ithin ninety days of the date of publication of such notice (or within such longer period as to which the applicant consents),” grant the registration or institute proceedings to determine whether the registration should be denied).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         The public comment file for the Form 1 (File No. 10-244) is available on the Commission's website at: 
                        <E T="03">https://www.sec.gov/comments/10-244/10-244.htm.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(a)(1)(B).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 101397, 89 FR 85264 (Oct. 25, 2024) (“OIP”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         letter from James G. Buckley, Chief Regulatory Officer, GIX, dated Nov. 25, 2024.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         15 U.S.C. 78s(a)(1)(B).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102223, 90 FR 8228 (Jan. 27, 2025).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         In Amendment No. 1, GIX amended Exhibits B (information about, among other things, rules of GIX not included in Exhibit A), B-1 (copy of the proposed GIX Rule Book), C (information regarding subsidiaries or affiliates), H (information about GIX's listing applications), H-2 (Corporate Governance Certification), H-3 (Dual Listing Agreement), H-5 (Sustainability Governance Standards discussion), and J (list of officers, governors, members of all standing committees, or persons performing similar functions). Overall, the principal change in Amendment No. 1 was the replacement of the proposed Green Governance Standards with proposed Sustainability Governance Standards. Subsequently, on February 28, 2025, GIX filed Amendment No. 2, which replaced and superseded Amendment No. 1 in its entirety. 
                        <E T="03">See infra</E>
                         note 9.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         In Amendment No. 2, GIX amended Exhibits B, B-1, C, H, H-1 (Dual Listing Application), H-2, H-3, and J of the original Form 1 primarily to eliminate the Green Governance Standards from GIX's listing rules and delete any references to the Green Governance Standards from the application. GIX also withdrew Exhibit H-5 entirely. Amendment No. 2 is available on the Commission's website at: 
                        <E T="03">https://www.sec.gov/rules-regulations/other-commission-orders-notices-information/green-impact-exchange-llc-form-1-application-exhibits.</E>
                         For purposes of this order, references to these listed Exhibits will be to the amended Exhibits filed with Amendment No. 2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102535 (Mar. 6, 2025), 90 FR 11865.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         15 U.S.C. 78s(a)(1)(B).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         letter from James G. Buckley, Chief Regulatory Officer, GIX, dated Mar. 6, 2025. 
                        <E T="03">See supra</E>
                         note 2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         In Amendment No. 3, GIX amended Exhibit C-3 (proposed First Amended and Restated Bylaws of Green Exchange, PBC (“GEPBC Bylaws”)) to clarify the language in Article VI, Section 6.11. Amendment No. 3 is available on the Commission's website at: 
                        <E T="03">https://www.sec.gov/rules-regulations/other-commission-orders-notices-information/green-impact-exchange-llc-form-1-application-exhibits.</E>
                         The changes in Amendment No. 3 are technical amendments that do not require notice and comment.
                    </P>
                </FTNT>
                <P>The Commission has reviewed the Exchange's registration application, as amended, together with the comment letters received, in order to make a determination whether to grant such registration. For the reasons set forth below, and based on the representations set forth in the Form 1, as amended, this order approves GIX's application, as amended, for registration as a national securities exchange.</P>
                <HD SOURCE="HD1">II. Statutory Standards</HD>
                <P>
                    Pursuant to Sections 6(b) and 19(a) of the Act,
                    <SU>14</SU>
                    <FTREF/>
                     the Commission shall by order grant an application for registration as a national securities exchange if the Commission finds, among other things, that the proposed exchange is so organized and has the capacity to carry out the purposes of the Act and can comply, and can enforce compliance by its members and persons associated with its members, with the provisions of the Act, the rules and regulations thereunder, and the rules of the exchange.
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         15 U.S.C. 78f(b) and 15 U.S.C. 78s(a), respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See also supra</E>
                         note 1 (discussing the time for Commission action following publication of notice of an application for exchange registration).
                    </P>
                </FTNT>
                <P>
                    As discussed in greater detail below, the Commission finds that GIX's application, as amended, for exchange registration meets the requirements of the Act and the rules and regulations thereunder. Further, the Commission finds that the proposed rules of GIX are consistent with Section 6 of the Act in that, among other things, they are designed to: (1) assure fair representation of the exchange's members in the selection of its directors and administration of its affairs and provide that, among other things, one or more directors shall be representative of investors and not be associated with the exchange, or with a broker or dealer; 
                    <SU>16</SU>
                    <FTREF/>
                     (2) prevent fraudulent and manipulative acts and practices, promote just and equitable principles of trade, foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, and remove impediments to and perfect the mechanisms of a free and open market and a national market system; 
                    <SU>17</SU>
                    <FTREF/>
                     (3) not permit unfair discrimination between customers, issuers, or dealers; 
                    <SU>18</SU>
                    <FTREF/>
                     and (4) protect investors and the public interest.
                    <SU>19</SU>
                    <FTREF/>
                     The Commission also finds that the proposed rules of GIX are consistent with Section 11A of the Act.
                    <SU>20</SU>
                    <FTREF/>
                     Finally, the Commission finds that GIX's proposed rules do not impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act.
                    <SU>21</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         U.S.C. 78f(b)(3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         15 U.S.C. 78k-1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         15 U.S.C. 78f(b)(8).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">III. Discussion</HD>
                <HD SOURCE="HD2">A. Ownership and Governance of GIX</HD>
                <P>
                    GIX is a Delaware limited liability company 
                    <SU>22</SU>
                    <FTREF/>
                     that will be wholly owned by its sole member, Green Exchange, PBC (“GEPBC”), a Delaware public benefit corporation.
                    <SU>23</SU>
                    <FTREF/>
                     GEPBC will be the entity through which the individual investors who are ultimate owners of the Exchange will hold their ownership interests in the Exchange.
                    <SU>24</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Certification of Formation of Green Impact Exchange, LLC.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Certificate of Incorporation of Green Exchange, PBC.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit C and Exhibit K.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">1. GIX Board of Directors</HD>
                <P>
                    The Board 
                    <SU>25</SU>
                    <FTREF/>
                     of GIX (“Exchange Board”) will be its governing body and will possess all of the powers necessary for the management of its business and affairs, including governance of GIX as a self-regulatory organization (“SRO”).
                    <SU>26</SU>
                    <FTREF/>
                     Specifically:
                </P>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         “Board” means the Board of Directors of GIX. 
                        <E T="03">See</E>
                         Article I, Section 1.01 of the proposed First Amended and Restated Limited Liability Company Agreement of Green Impact Exchange (“GIX LLC Agreement”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.02. 
                        <E T="03">See also</E>
                         Form 1, Exhibit J.
                    </P>
                </FTNT>
                <P>
                    • the Exchange Board initially will be composed of 10 Directors; 
                    <SU>27</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(a). The term “Director” is defined in GIX LLC Agreement, Article I, Section 1.01 and Article VII, Section 7.01. A Director may not be subject to statutory disqualification. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.06(d).
                    </P>
                </FTNT>
                <P>
                    • one Director will be the Chief Executive Officer (“CEO”) of GIX, who shall be considered a Holdco Investor Director; 
                    <SU>28</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(b)(i). “Holdco Investor Director” means a Director who has been nominated by GEPBC pursuant to Section 3.01(c) of the GEPBC Bylaws to represent GEPBC's interests on the Exchange Board. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article I, Section 1.01.
                    </P>
                </FTNT>
                <P>
                    • at least 50% of the Directors of the Exchange Board shall be Non-Industry Directors,
                    <SU>29</SU>
                    <FTREF/>
                     and the remainder shall be Industry Directors; 
                    <SU>30</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         “Non-Industry Director” means a Director who is an Independent Director or any other individual who would not be an Industry Director or Member Representative Director. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article I, Section 1.01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         “Industry Director” means, among other criteria, a Director who is or has served within the prior three years an officer, director, or employee of a broker or dealer, excluding an outside director or a director not engaged in the day-to-day management of a broker or dealer. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article I, Section 1.01, for a description of all of the circumstances regarding when a Director would be considered an Industry Director.
                    </P>
                </FTNT>
                <P>
                    • two Industry Directors (in addition to the CEO of GIX) shall be Holdco Investor Directors; 
                    <SU>31</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(b)(ii) and (c)(ii).
                    </P>
                </FTNT>
                <PRTPAGE P="16209"/>
                <P>
                    • two Directors shall be Member Representative Directors 
                    <SU>32</SU>
                    <FTREF/>
                     and counted as Industry Directors; 
                    <SU>33</SU>
                    <FTREF/>
                     provided that if the size of the Board is increased or decreased, at least 20% of the Directors on the Exchange Board shall be Member Representative Directors; 
                    <SU>34</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(b). “Member Representative Director” means a Director who has been appointed as such to the initial Exchange Board pursuant to Section 7.04 of the GIX LLC Agreement or elected by GEPBC after having been nominated by the Member Nominating Committee or by an Exchange Member pursuant to the GIX LLC Agreement and confirmed as the nominee of Exchange members after majority vote of Exchange Members, if applicable. A Member Representative Director must be an officer, director, employee, or agent of an Exchange Member that is not a Unit Holder. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article I, Section 1.01. A “Unit Holder” means a beneficial owner who owns, directly or indirectly, Units of GIX. An Exchange Member may be, but is not required to be, a Unit Holder. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article I, Section 1.01. “Units” means the limited liability company interests issued by GIX to Company Members. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article I, Section 1.01. “Company Member” means GEPBC and any other Unit Holders as may be added under the terms of the GIX LLC Agreement. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article I, Section 1.01. “Exchange Member” means any registered broker or dealer that has been admitted to membership in GIX. An Exchange Member shall have the status of a “member” of the Exchange as that term is defined in Section 3(a)(3) of the Exchange Act. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article I, Section 1.01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(b)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(b)(iii).
                    </P>
                </FTNT>
                <P>
                    • at least two of the Non-Industry Directors shall also qualify as Independent Directors; 
                    <SU>35</SU>
                    <FTREF/>
                     and
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(b)(iv). “Independent Director” means a Director who has no material relationship with GIX or any affiliate of GIX or any Exchange Member or any affiliate of any such Exchange Member; provided, however, that an individual who otherwise qualifies as an Independent Director shall not be disqualified from serving in such capacity solely because such Director is a Director of GIX or GEPBC. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article I, Section 1.01. In addition, the Exchange Board shall have a “Lead Independent Director,” who shall be an Independent Director selected by the Non-Industry Directors and will facilitate the functioning of the Exchange Board independently of management of GIX and provide independent leadership to the Exchange Board. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(d)(i) and (ii). 
                        <E T="03">See also</E>
                         GIX LLC Agreement, Article VII, Section 7.03(d)(ii)(A)-(K) for further description of the responsibilities of the Lead Independent Director.
                    </P>
                </FTNT>
                <P>
                    • during such time as GIX operates a listings business, one of the Non-Industry Directors shall be an officer or director of an issuer (“Issuer Director”) and one of the Non-Industry Directors shall be a Public Investor Director,
                    <SU>36</SU>
                    <FTREF/>
                     provided that in each case, such Director must not be associated with GEPBC. A Public Investor Director also must not be associated with an Exchange Member.
                    <SU>37</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         “Public Investor Director” means a Director who is a representative of public investors, provided that a Public Investor Director shall not be associated with an Exchange Member. An Independent Director may be a Public Investor Director. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article I, Section 1.01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(b)(v).
                    </P>
                </FTNT>
                <P>
                    The initial Directors of the Exchange Board will be appointed by GEPBC and will serve until the first annual meeting of Company Members.
                    <SU>38</SU>
                    <FTREF/>
                     The first annual meeting of Company Members will be held within 90 days after the Commission grants GIX's exchange registration.
                    <SU>39</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(e).
                    </P>
                </FTNT>
                <P>
                    In addition, GEPBC will appoint the initial Nominating Committee and Member Nominating Committee, consistent with each committee's compositional requirements, to nominate candidates for election to the Exchange Board.
                    <SU>40</SU>
                    <FTREF/>
                     The Nominating Committee and Member Nominating Committee, after completion of their respective duties for nominating directors for election to the Board for that year, will recommend candidates to serve on the succeeding year's Nominating Committee or Member Nominating Committee, as applicable.
                    <SU>41</SU>
                    <FTREF/>
                     Exchange Members will have rights to nominate and elect additional candidates for the Member Nominating Committee pursuant to a petition process.
                    <SU>42</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.07(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.07(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.04.
                    </P>
                </FTNT>
                <P>
                    The Nominating Committee will nominate candidates for election to the Board.
                    <SU>43</SU>
                    <FTREF/>
                     For Member Representative Director positions, the Member Nominating Committee, composed solely of Member Representative Committee or Panel Members,
                    <SU>44</SU>
                    <FTREF/>
                     will solicit input from Exchange Members, and Exchange Members may submit petition candidates.
                    <SU>45</SU>
                    <FTREF/>
                     If no candidates are nominated pursuant to a petition process, then the initial nominees approved and submitted by the Member Nominating Committee will be nominated as Member Representative Directors by the Nominating Committee.
                    <SU>46</SU>
                    <FTREF/>
                     If a petition process produces additional candidates, then the candidates nominated pursuant to the petition process, together with those nominated by the Member Nominating Committee, will be presented to Exchange Members for election to determine the final designees for any open Member Representative Director positions.
                    <SU>47</SU>
                    <FTREF/>
                     In the event of a contested election, the candidates who receive the most votes will be selected as the Member Representative Director designees by the Member Nominating Committee.
                    <SU>48</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.04(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         “Member Representative Committee or Panel Member” means a member of any Committee or hearing panel who is an officer, director, employee or agent of an Exchange Member that is not a Unit Holder. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article I, Section 1.01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.04(b). 
                        <E T="03">See also</E>
                         GIX LLC Agreement, Article VII, Section 8.07(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.04(b)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.04(b)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.04(b)(iv).
                    </P>
                </FTNT>
                <P>
                    The GIX governance provisions are consistent with the Act. In particular, the requirement that the number of Member Representative Directors must be at least 20% of the Board and the means by which they will be chosen by Exchange Members provides for the fair representation of members in the selection of directors and the administration of GIX and therefore are consistent with Section 6(b)(3) of the Act.
                    <SU>49</SU>
                    <FTREF/>
                     As the Commission has previously stated, this requirement helps to ensure that members have a voice in an exchange's self-regulatory program, and that an exchange is administered in a way that is equitable to all those who trade on its market or through its facilities.
                    <SU>50</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         15 U.S.C. 78f(b)(3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release Nos. 101777 (Nov. 27, 2024), 89 FR 97092 (Dec. 6, 2024) (File No. 10-242) (order granting exchange registration of 24X National Exchange LLC (“24X”)) (“24X Order”); 100539 (July 15, 2024), 89 FR 58848 (July 19, 2024) (File No. 10-240) (order granting exchange registration of MIAX Sapphire, LLC) (“Sapphire Order”); 88806 (May 4, 2020), 85 FR 27451 (May 8, 2020) (File No. 10-237) (order granting exchange registration of MEMX LLC (“MEMX Exchange”)) (“MEMX Order”); 85828 (May 10, 2019), 84 FR 21841 (May 15, 2019) (File No. 10-234) (order granting exchange registration of Long Term Stock Exchange, Inc. (“LTSE Exchange”)) (“LTSE Order”); 79543 (Dec. 13, 2016), 81 FR 92901, 92903 (Dec. 20, 2016) (File No. 10-227) (order granting exchange registration of MIAX PEARL, LLC) (“MIAX PEARL Order”); 68341 (Dec. 3, 2012), 77 FR 73065, 73067 (Dec. 7, 2012) (File No. 10-207) (order granting exchange registration of Miami International Securities Exchange, LLC (“MIAX Exchange”)) (“MIAX Order”); 58375 (Aug. 18, 2008), 73 FR 49498, 49501 (Aug. 21, 2008) (File No. 10-182) (order granting exchange registration of BATS Exchange, Inc.) (“BATS Order”); 53128 (Jan. 13, 2006), 71 FR 3550, 3553 (Jan. 23, 2006) (File No. 10-131) (order granting exchange registration of Nasdaq Stock Market, Inc.) (“Nasdaq Order”).
                    </P>
                </FTNT>
                <P>
                    In addition, with respect to the requirements that the number of Non-Industry Directors equal or exceed the number of Industry Directors (which include Member Representative 
                    <PRTPAGE P="16210"/>
                    Directors) and that at least two Non-Industry Directors shall also qualify as Independent Directors, the proposed composition of the Exchange Board satisfies the requirements in Section 6(b)(3) of the Act.
                    <SU>51</SU>
                    <FTREF/>
                     The Commission previously has stated that the inclusion of public, non-industry representatives on exchange oversight bodies is an important mechanism to support an exchange's ability to protect the public interest.
                    <SU>52</SU>
                    <FTREF/>
                     Further, the presence of public, non-industry representatives can help to ensure that no single group of market participants has the ability to systematically disadvantage other market participants through the exchange governance process. Public directors can provide unbiased perspectives, which may enhance the ability of the Exchange Board to address issues in a non-discriminatory fashion and foster the integrity of the Exchange. For similar reasons, the additional composition requirement that applies during such time as GIX operates a listings business (
                    <E T="03">i.e.,</E>
                     the requirement that one Director be an officer or director of an issuer and one Director be representative of public investors, in each case, not associated with a Company Member 
                    <SU>53</SU>
                    <FTREF/>
                    ) is consistent with the requirements of Section 6(b)(3) of the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         15 U.S.C. 78f(b)(3).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See, e.g.,</E>
                         MEMX Order, 
                        <E T="03">supra</E>
                         note 50, at 27452; LTSE Order, 
                        <E T="03">supra</E>
                         note 50, at 21843; MIAX PEARL Order, 
                        <E T="03">supra</E>
                         note 50, at 92903; MIAX Order, 
                        <E T="03">supra</E>
                         note 50, at 73067; BATS Order, 
                        <E T="03">supra</E>
                         note 50, at 49501; and Nasdaq Order, 
                        <E T="03">supra</E>
                         note 50, at 3553.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(b)(v).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Interim Board</HD>
                <P>
                    GEPBC will hold a special meeting to appoint interim Directors of the Board (“Interim Board”), which will include interim Member Representative Directors.
                    <SU>54</SU>
                    <FTREF/>
                     Upon appointment of the interim Directors, the Interim Board will meet the Exchange Board composition requirements set forth in the GIX LLC Agreement.
                    <SU>55</SU>
                    <FTREF/>
                     The Interim Board Directors will serve only until the first annual meeting of Company Members, which will be held within 90 days after the Commission grants the Exchange's registration as a national securities exchange.
                    <SU>56</SU>
                    <FTREF/>
                     The Exchange represents that it will complete the full nomination, petition, and voting process set forth in the GIX LLC Agreement, which will provide persons that are approved as Exchange Members after the date that the Commission grants the Exchange's registration as a national securities exchange with the opportunity to participate in the selection of Member Representative Directors as promptly as possible after the effective date of the GIX LLC Agreement.
                    <SU>57</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit J.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         
                        <E T="03">See id. See also</E>
                         GIX LLC Agreement, Article VII, Section 7.03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit J.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">3. Exchange Committees</HD>
                <P>
                    GIX has proposed to establish several named committees of the Exchange Board, including: an Appeals Committee,
                    <SU>58</SU>
                    <FTREF/>
                     a Regulatory Oversight Committee,
                    <SU>59</SU>
                    <FTREF/>
                     and a Governance and Sustainability Oversight Committee (“GSOC”),
                    <SU>60</SU>
                    <FTREF/>
                     as well as the Nominating Committee and Member Nominating Committee, discussed above.
                    <SU>61</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.01. The Appeals Committee will preside over all appeals related to disciplinary and adverse action determinations in accordance with GIX rules. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.06.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.01. The Regulatory Oversight Committee will be responsible for establishing the goals, assessing the performance, and fixing the compensation of the Chief Regulatory Officer and for recommending personnel actions involving the Chief Regulatory Officer and senior regulatory personnel. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.08(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.01. The GSOC will recommend to the Exchange Board corporate governance principles applicable to GIX, including those related to environmental, social responsibility and sustainability matters; assist the Exchange Board in its annual evaluation of the performance and effectiveness of the Independent Lead Director, the Exchange Board and its committees; and perform such other duties as the Exchange Board and/or the Chairperson may direct. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.09(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         The Exchange Board could also establish additional committees. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.01. All committees of the Exchange Board will be subject to the control and supervision of the Exchange Board. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    The Appeals Committee will consist of two Independent Directors, and one Member Representative Director.
                    <SU>62</SU>
                    <FTREF/>
                     Each member of the Regulatory Oversight Committee must be an Independent Director.
                    <SU>63</SU>
                    <FTREF/>
                     The GSOC will consist of at least three members, including one Holdco Investor Director, one Member Representative Director, and one Non-Industry Director.
                    <SU>64</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.06.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.08(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 8.09(a).
                    </P>
                </FTNT>
                <P>
                    The GIX proposed named committees, which are similar to the named committees maintained by other exchanges (with one exception),
                    <SU>65</SU>
                    <FTREF/>
                     are designed to help enable the Exchange to carry out its responsibilities under the Act and are consistent with the Act, including Section 6(b)(1), which requires, in part, an exchange to be so organized and have the capacity to carry out the purposes of the Act.
                    <SU>66</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         
                        <E T="03">See, e.g.,</E>
                         MEMX Order, 
                        <E T="03">supra</E>
                         note 50, at 27453. 
                        <E T="03">See also</E>
                         Securities Exchange Act Release No. 78101 (June 17, 2016), 81 FR 41142 (June 23, 2016) (File No. 10-222) (order granting exchange registration of Investors' Exchange, LLC) (“IEX Order”); Article IV, Section 4.1 of the Eleventh Amended and Restated Bylaws of Cboe Exchange, Inc. The one exception is the GSOC, which acts in an advisory capacity on matters relating solely to the governance of GIX itself, not its Members or listed companies. 
                        <E T="03">See infra</E>
                         note 60.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>66</SU>
                         15 U.S.C. 78f(b)(1).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. GEPBC and Regulation of the Exchange</HD>
                <P>When GIX commences operations as a national securities exchange, it will have all of the attendant regulatory obligations under the Act. In particular, GIX will be responsible for the operation and regulation of its trading system and the regulation of its members. Certain provisions in both the GIX and GEPBC governing documents are designed to facilitate the ability of GIX to fulfill its regulatory obligations and to help facilitate Commission oversight of GIX. The discussion below summarizes some of these key provisions.</P>
                <HD SOURCE="HD3">1. Ownership Structure; Ownership and Voting Limitations</HD>
                <P>
                    As stated above, GIX will be owned by GEPBC. The proposed GEPBC Bylaws include restrictions on the ability to own and vote shares of Capital Stock 
                    <SU>67</SU>
                    <FTREF/>
                     of GEPBC.
                    <SU>68</SU>
                    <FTREF/>
                     These limitations are designed to prevent any party to the GEPBC Bylaws from exercising undue control over the operation of the Exchange and to ensure that the Exchange and the Commission are able to carry out their regulatory obligations under the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>67</SU>
                         “Capital Stock” means any and all shares of stock of GEPBC, including, without limitation, shares of common, preferred, or other preference stock. 
                        <E T="03">See</E>
                         GEPBC Bylaws, Article I, Section 1.01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>68</SU>
                         These provisions are consistent with ownership and voting limits approved by the Commission for other SROs. 
                        <E T="03">See, e.g.,</E>
                         LTSE Order, MIAX PEARL Order, MIAX Order, and BATS Order, 
                        <E T="03">supra</E>
                         note 50, and IEX Order, 
                        <E T="03">supra</E>
                         note 65; 
                        <E T="03">see also</E>
                         Securities Exchange Act Release Nos. 76998 (Jan. 29, 2016), 81 FR 6066 (Feb. 4, 2016) (File No. 10-221) (order granting exchange registration of ISE Mercury, LLC) (“ISE Mercury Order”); 70050 (July 26, 2013), 78 FR 46622, 46624 (Aug. 1, 2013) (File No. 10-209) (order granting exchange registration of ISE Gemini, LLC) (“ISE Gemini Order”); 62158 (May 24, 2010), 75 FR 30082 (May 28, 2010) (CBOE-2008-88) (Cboe demutualization order); 53963 (June 8, 2006), 71 FR 34660 (June 15, 2006) (SR-NSX-2006-03) (NSX demutualization order); 51149 (Feb. 8, 2005), 70 FR 7531 (Feb. 14, 2005) (SR-CHX-2004-26) (CHX demutualization order); and 49098 (Jan. 16, 2004), 69 FR 3974 (Jan. 27, 2004) (SR-Phlx-2003-73) (Phlx demutualization order).
                    </P>
                </FTNT>
                <P>
                    In particular, for so long as GEPBC shall control, directly or indirectly, GIX, 
                    <PRTPAGE P="16211"/>
                    no person,
                    <SU>69</SU>
                    <FTREF/>
                     either alone or together with its related persons,
                    <SU>70</SU>
                    <FTREF/>
                     will be permitted to own, directly or indirectly, of record or beneficially, Capital Stock constituting more than 40% of any class of Capital Stock.
                    <SU>71</SU>
                    <FTREF/>
                     A more restrictive condition will apply to the broker-dealer members of the Exchange, who will be prohibited from owning, directly or indirectly, either alone or together with their related persons, more than 20% of any class of Capital Stock.
                    <SU>72</SU>
                    <FTREF/>
                     If any stockholder 
                    <SU>73</SU>
                    <FTREF/>
                     purports to sell, transfer, assign, pledge, or own any shares of GEPBC in violation of these ownership limits, GEPBC will be required (to the extent funds are legally available) to redeem the shares in excess of the applicable ownership limit at their par value.
                    <SU>74</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>69</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article I, Section 1.01 (defining “Person”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>70</SU>
                         
                        <E T="03">See id.</E>
                         (defining “Related Persons”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>71</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article V, Section 5.05(a)(i). There are limited exceptions to these prohibitions. 
                        <E T="03">See infra</E>
                         notes 76-78 and accompanying text.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>72</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article V, Section 5.05(a)(ii). This restriction, unlike others discussed below (
                        <E T="03">see infra</E>
                         note 76-78 and accompanying text), cannot be waived. 
                        <E T="03">See</E>
                         GEPBC Bylaws, Article V, Section 5.05(c)(ii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>73</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article I, Section 1.01 (defining “Stockholder”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>74</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article V, Section 5.08(a). GEPBC shall, promptly upon the occurrence of any automatic conversion pursuant to GEPBC Bylaws, Article V, Section 5.08, authorize and issue such number of shares of nonvoting shares as is necessary to effect the conversion, and shall reflect the resulting changes in its books and records relating to Capital Stock. Notwithstanding anything to the contrary, the failure to reflect the conversion in the books and records of GEPBC shall not invalidate such automatic conversion, which shall be deemed to be effective notwithstanding any such failure. 
                        <E T="03">See</E>
                         GEPBC Bylaws, Article V, Section 5.08(d). In addition, in the event that any redemption has resulted in any stockholder owning such number of shares that is in violation of the ownership limits, GEPBC will be required to redeem those shares pursuant to the limitation provisions. 
                        <E T="03">See</E>
                         GEPBC Bylaws, Article V, Section 5.08(g).
                    </P>
                </FTNT>
                <P>
                    In addition, no person, alone or together with its related persons, may, directly, indirectly, or pursuant to any agreement, vote or cause the voting of Capital Stock or give any consent or proxy with respect to Capital Stock representing more than 20% of the voting power of the then-issued and outstanding Capital Stock (“Voting Limitation”).
                    <SU>75</SU>
                    <FTREF/>
                     Further, no person, either alone or together with its related persons, may enter into any agreement, plan or other arrangement with any other person, either alone or together with its related persons, under circumstances that would result in the Capital Stock that is subject to such agreement, plan, or other arrangement not being voted on any matter or matters or any proxy relating thereto being withheld, where the effect of such agreement, plan, or other arrangement would be to enable any person, either alone or together with its related persons, to vote, possess the right to vote, or cause the voting of Capital Stock that would represent more than 20% of such voting power.
                    <SU>76</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>75</SU>
                         
                        <E T="03">See</E>
                         GEBPC Bylaws, Article V, Section 5.05(a)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>76</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    Except with respect to Exchange Members and their related persons, GEPBC will be permitted to waive the 40% ownership limitation and the 20% Voting Limitation pursuant to a unanimous resolution of the GEPBC Board,
                    <SU>77</SU>
                    <FTREF/>
                     if it makes certain determinations.
                    <SU>78</SU>
                    <FTREF/>
                     Any such waiver will not be effective unless and until approved by the Commission.
                    <SU>79</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>77</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article V, Section 5.05(c)(ii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>78</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article V, Section 5.05(c)(ii). The required determinations are that such waiver will not impair the ability of the Exchange to carry out its functions and responsibilities as an “exchange” under the Act and the rules and regulations promulgated thereunder; that such waiver is otherwise in the best interests of GEPBC, its stockholders, and the Exchange; that such waiver will not impair the ability of the Commission to enforce the Act and the rules and regulations promulgated thereunder; and that such Person and its Related Persons are not subject to any applicable “statutory disqualification” within the meaning of Section 3(a)(39) of the Act. 
                        <E T="03">See</E>
                         GEPBC Bylaws, Article V, Section 5.05(c)(ii) and (d). These provisions are consistent with ownership and voting limits approved by the Commission for other SROs. 
                        <E T="03">See, e.g.,</E>
                         MEMX Order, LTSE Order, MIAX PEARL Order, MIAX Order, and BATS Order, 
                        <E T="03">supra</E>
                         note 50; ISE Mercury Order and ISE Gemini Order, 
                        <E T="03">supra</E>
                         note 67; IEX Order, 
                        <E T="03">supra</E>
                         note 65; and Securities Exchange Act Release No. 61698 (Mar. 12, 2010), 75 FR 13151 (Mar. 18, 2010) (File Nos. 10-194 and 10-196) (order granting exchange registration of DirectEdge exchanges) (“DirectEdge Exchanges Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>79</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article V, Section 5.05(c)(ii).
                    </P>
                </FTNT>
                <P>
                    Any person that proposes to own Capital Stock in excess of the 40% ownership limitation, or to vote or grant any proxies or consents with respect to Capital Stock constituting more than 20% of the voting power of then-issued and outstanding Capital Stock, will be required to deliver written notice to the GEPBC Board of its intention.
                    <SU>80</SU>
                    <FTREF/>
                     The notice must be delivered to GEPBC not less than 45 days (or any shorter period to which the Board expressly consents) before the proposed ownership of such Capital Stock or the proposed vote.
                    <SU>81</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>80</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article V, Section 5.05(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>81</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    The GEPBC Bylaws also contain provisions that are designed to further safeguard the ownership and voting limitations described above, or are otherwise related to direct and indirect changes in control. Specifically, any person that, either alone or together with its related persons owns, directly or indirectly (whether by acquisition or a change in the number of Capital Stock outstanding), of record or beneficially 5% or more of the then outstanding Capital Stock will be required to notify the GEPBC Board in writing of such ownership.
                    <SU>82</SU>
                    <FTREF/>
                     Thereafter, such persons will be required to update GEPBC of any increase or decrease of 1% or more in their previously reported ownership percentage.
                    <SU>83</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>82</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article V, Section 5.06(a). The notice will require the Person's full legal name; the Person's title or status and the date on which such title or status was acquired; the Person's and its Related Person's) approximate ownership interest in GEPBC; and whether the person has power, directly or indirectly, to direct the management or policies of GEPBC, whether through ownership of securities, by contract or otherwise. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>83</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article V, Section 5.06(b)(i). Changes of less than 1% must also be reported to GEPBC if they result in such Person crossing a 20% or 40% ownership threshold. 
                        <E T="03">See id.</E>
                         In addition, the Exchange's rules also impose limits on affiliation between the Exchange and an Exchange Member. 
                        <E T="03">See</E>
                         GIX Rule 2.210 (No Affiliation between Exchange and any Member).
                    </P>
                </FTNT>
                <P>
                    The Exchange's LLC Agreement does not include the same change of control provisions that are present in the GEPBC Bylaws because the GIX LLC Agreement instead explicitly identifies its owner (GEPBC) by name as the Company Member of GIX.
                    <SU>84</SU>
                    <FTREF/>
                     Thus, any changes in the ownership of GIX would require the GIX LLC Agreement to be amended. Any amendment to the GIX LLC Agreement, including to ownership of the Exchange, would constitute a proposed rule change under Section 19(b) of the Act 
                    <SU>85</SU>
                    <FTREF/>
                     and Rule 19b-4 
                    <SU>86</SU>
                    <FTREF/>
                     thereunder that will be required to be filed with, or filed with and approved by, the Commission.
                    <SU>87</SU>
                    <FTREF/>
                     Moreover, pursuant to the GIX LLC Agreement itself, any transfer of limited liability company interests of GIX will be subject to prior approval by the Commission pursuant to the rule filing procedure under Section 19 of the Act.
                    <SU>88</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>84</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Schedule 1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>85</SU>
                         15 U.S.C. 78s(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>86</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>87</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article XIX, Section 19.02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>88</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article XV, Section 15.01(a).
                    </P>
                </FTNT>
                <P>
                    Although GEPBC is not directly responsible for regulation, its activities with respect to the operation of GIX must be consistent with, and must not interfere with, the self-regulatory obligations of GIX.
                    <SU>89</SU>
                    <FTREF/>
                     As described above, the provisions applicable to direct and indirect changes in control of GEPBC and GIX, as well as the voting limitation imposed on owners of GEPBC who also are Exchange Members, are 
                    <PRTPAGE P="16212"/>
                    designed to help prevent any owner of GEPBC from exercising undue influence or control over the operation of the Exchange and to help ensure that the Exchange retains a sufficient degree of independence to effectively carry out its regulatory obligations under the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>89</SU>
                         
                        <E T="03">See, e.g.,</E>
                         IEX Order, 
                        <E T="03">supra</E>
                         note 65.
                    </P>
                </FTNT>
                <P>
                    In addition, these limitations are designed to address the conflicts of interests that might result from a member of a national securities exchange owning interests in the exchange. As the Commission has stated in the past, a member's ownership interest in an entity that controls an exchange could become so large as to cast doubt on whether the exchange may fairly and objectively exercise its self-regulatory responsibilities with respect to such member.
                    <SU>90</SU>
                    <FTREF/>
                     A member that is a controlling shareholder of an exchange could seek to exercise that controlling influence by directing the exchange to refrain from, or the exchange may hesitate to, diligently monitor and conduct surveillance of the member's conduct or diligently enforce the exchange's rules and the federal securities laws with respect to conduct by the member that violates such provisions. As such, these requirements are designed to minimize the potential that a person or entity can improperly interfere with or restrict the ability of the Exchange to effectively carry out its regulatory oversight responsibilities under the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>90</SU>
                         
                        <E T="03">See, e.g.,</E>
                         MEMX Order, LTSE Order, MIAX PEARL Order, MIAX Order, and BATS Order, 
                        <E T="03">supra</E>
                         note 50; IEX Order, 
                        <E T="03">supra</E>
                         note 65; ISE Mercury Order, 
                        <E T="03">supra</E>
                         note 67; and DirectEdge Exchanges Order, 
                        <E T="03">supra</E>
                         note 77.
                    </P>
                </FTNT>
                <P>
                    The Commission has recognized that “to be effective, an SRO must be structured in such a way that regulatory staff is unencumbered by inappropriate business pressure” that could “inhibit effective regulation and discourage vigorous enforcement against members.” 
                    <SU>91</SU>
                    <FTREF/>
                     To help ensure independent and empowered SRO regulatory operations, GIX has, among other things, adopted a governance structure designed to mitigate the inherent conflict. Specifically, GIX has an independent Chief Regulatory Officer that oversees the Exchange's regulatory operations and that reports to an independent Regulatory Oversight Committee of the Exchange Board. In addition, GIX has an Exchange Board composed of at least 50% Non-Industry Directors 
                    <SU>92</SU>
                    <FTREF/>
                     with required key board committees that are either fully independent or majority independent, such as the Regulatory Oversight Committee 
                    <SU>93</SU>
                    <FTREF/>
                     and the Appeals Committee.
                    <SU>94</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>91</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 50700 (Nov. 18, 2004), 69 FR 71256 (Dec. 8, 2004) (Concept Release Concerning Self-Regulation). Nevertheless, the federal securities laws require member involvement in the overall governance and administration of an exchange. 
                        <E T="03">See, e.g.,</E>
                         15 U.S.C. 78f(b)(3) (requiring an exchange, among other things, to provide to its broker-dealer members “a fair representation of its members in the selection of its directors and administration of its affairs”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>92</SU>
                         In addition, at least two of the Non-Industry Directors shall be Independent Directors. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VII, Section 7.03(b)(iv).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>93</SU>
                         Each member of the Regulatory Oversight Committee will be an Independent Director. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.08(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>94</SU>
                         The Appeals Committee will consist of two Independent Directors and one Member Representative Director. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.06.
                    </P>
                </FTNT>
                <P>
                    Ownership and voting limits in the governing documents of an exchange and/or its holding company further protects the status of SRO independence. The provisions that GIX has proposed, which are consistent with those in place across all exchanges today, are designed to prevent any direct or indirect owner from exercising control over the operation of the exchange as well as to ensure that the exchange and the Commission are able to carry out their regulatory obligations under the Act. These provisions impose limits on voting and ownership of exchange holding companies, with more stringent ownership limits imposed on member owners.
                    <SU>95</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>95</SU>
                         
                        <E T="03">See supra</E>
                         notes 68-87 and accompanying text.
                    </P>
                </FTNT>
                <P>As a registered exchange, GIX will be subject to the same regulatory standards applicable to any other exchange regardless of the identity of the ultimate owners of that exchange. As discussed above and further below, GIX has proposed to adopt industry-standard protections in a governance structure for itself and its holding company that is designed to preserve GIX's self-regulatory independence by protecting GIX from inappropriate business pressures.</P>
                <P>
                    GIX's and GEPBC's proposed governance provisions are consistent with the Act, including Section 6(b)(1), which requires, in part, an exchange to be so organized and have the capacity to carry out the purposes of the Act.
                    <SU>96</SU>
                    <FTREF/>
                     In particular, these requirements are designed to minimize the potential that a person could improperly interfere with or restrict the ability of the Commission or the Exchange to effectively carry out their regulatory oversight responsibilities under the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>96</SU>
                         15 U.S.C. 78f(b)(1).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Regulatory Independence and Oversight</HD>
                <P>
                    Although GEPBC will not itself carry out regulatory functions, its activities with respect to the operation of GIX must be consistent with, and must not interfere with, GIX's self-regulatory obligations. In this regard, GIX and GEPBC propose to adopt certain provisions in their respective governing documents that are designed to help maintain the independence of the regulatory functions of GIX. These proposed provisions are substantially similar to those included in the governing documents of other exchanges that recently have been granted registration.
                    <SU>97</SU>
                    <FTREF/>
                     Specifically:
                </P>
                <FTNT>
                    <P>
                        <SU>97</SU>
                         
                        <E T="03">See, e.g.,</E>
                         24X Order, MEMX Order, and LTSE Order, 
                        <E T="03">supra</E>
                         note 50; IEX Order, 
                        <E T="03">supra</E>
                         note 65; and DirectEdge Exchanges Order, 
                        <E T="03">supra</E>
                         note 77.
                    </P>
                </FTNT>
                <P>
                    • the directors, officers, employees, and agents of GEPBC must give due regard to the preservation of the independence of the self-regulatory function of GIX and to its obligations to investors and the general public and must not take actions which would interfere with the effectuation of decisions by the Exchange Board relating to its regulatory functions (including disciplinary matters) or which would interfere with GIX's ability to carry out its responsibilities under the Act.
                    <SU>98</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>98</SU>
                         
                        <E T="03">See</E>
                         First Amended &amp; Restated Bylaws of Green Exchange PBC (“GEPBC Bylaws”), Article VI, Section 6.10. Similarly, Article VII, Section 7.02(b) of the GIX LLC Agreement requires the Exchange Board and each Director, when managing the business and affairs of GIX, to consider the requirements of Section 6(b) of the Act and requires each Director, officer, or employee of GIX to comply with the federal securities laws and regulations thereunder and cooperate with the Commission, and GIX pursuant to its regulatory authority. Article VII, Section 7.02(c) of the GIX LLC Agreement also requires the Exchange Board, when evaluating any proposal to take into account all factors that the Exchange Board deems relevant, including, without limitation, to the extent deemed relevant: the potential impact on the integrity, continuity and stability of the national securities exchange operated by GIX and the other operations of GIX, on the ability to prevent fraudulent and manipulative acts and practices, and on investors and the public, and whether such proposal would promote just and equitable principles of trade, foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to and facilitating transactions in securities or assist in the removal of impediments to or perfection of the mechanisms for a free and open market and a national market system.
                    </P>
                </FTNT>
                <P>
                    • GEPBC must comply with the federal securities laws and the rules and regulations promulgated thereunder, and must cooperate with the Commission, GIX, Financial Industry Regulatory Authority, Inc. (“FINRA”), and any other SROs pursuant to and to the extent of their respective regulatory authority.
                    <SU>99</SU>
                    <FTREF/>
                     In addition, GEPBC's officers, directors, employees, and agents must comply with the federal securities laws and the rules and regulations promulgated thereunder and 
                    <PRTPAGE P="16213"/>
                    are deemed to agree to cooperate with: (1) the Commission and GIX in respect of the Commission's oversight responsibilities regarding GIX and the self-regulatory functions and responsibilities of GIX; and (2) FINRA and any other SROs with respect to such other SRO's oversight responsibilities.
                    <SU>100</SU>
                    <FTREF/>
                     GEPBC must take reasonable steps necessary to cause its officers, directors, employees and agents to so cooperate.
                    <SU>101</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>99</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article VI, Section 6.08.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>100</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>101</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    • GEPBC, and its officers, directors, employees, and agents must submit to the jurisdiction of the U.S. federal courts, the Commission, and GIX, for purposes of any suit, action or proceeding pursuant to the U.S. federal securities laws, and the rules and regulations thereunder, arising out of, or relating to, GIX activities.
                    <SU>102</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>102</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article VI, Section 6.07(b).
                    </P>
                </FTNT>
                <P>
                    • All books and records of GIX reflecting confidential information pertaining to the self-regulatory function of GIX (including but not limited to disciplinary matters, trading data, trading practices, and audit information) must be retained in confidence by GIX and its personnel, including directors, officers, employees, and agents, and will not be used by GIX for any non-regulatory purposes and shall not be made available to any person (including, without limitation, any GIX member) other than to personnel of the Commission, personnel of another SRO performing regulatory services on behalf of GIX, a processor operating pursuant to an effective national market system plan, and those personnel of GIX, members of committees of the Exchange Board, members of the Exchange Board, or hearing officers and other agents of GIX, to the extent necessary or appropriate to properly discharge the self-regulatory responsibilities of GIX.
                    <SU>103</SU>
                    <FTREF/>
                     Similar provisions apply to GEPBC and its directors, officers, employees, and agents.
                    <SU>104</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>103</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article XIII, Section 13.01(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>104</SU>
                         The GEPBC Bylaws further provide that all books and records of GIX reflecting confidential information pertaining to the self-regulatory function of GIX that come into the possession of GEPBC, and the information contained in those books and records of GIX, will be retained in confidence by GEPBC and the officers, directors, employees and agents of GEPBC. 
                        <E T="03">See</E>
                         GEPBC Bylaws, Article VI, Section 6.11(c). The GIX and GEPBC governing documents acknowledge that requirements to keep such information confidential shall not limit or impede the rights of the Commission to access and examine such confidential information pursuant to the U.S. federal securities laws and the rules and regulations thereunder, or limit the ability of officers, directors, employees, or agents of GIX or GEPBC to disclose such information to the Commission or GIX. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article XIII, Section 13.01(b) and GEPB Bylaws, Article VI, Section 6.01(c).
                    </P>
                </FTNT>
                <P>
                    • The books and records of GIX and GEPBC must be maintained in the United States 
                    <SU>105</SU>
                    <FTREF/>
                     and, to the extent they are related to the operation or administration of GIX, GEPBC's books and records will be subject at all times to inspection and copying by the Commission and GIX.
                    <SU>106</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>105</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article XIII, Section 13.01(a); and GEPBC Bylaws, Article VI, Section 6.11(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>106</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article VI, Section 6.11(b).
                    </P>
                </FTNT>
                <P>
                    • Furthermore, to the extent they are related to the operation or administration of GIX, the books, records, premises, officers, directors, employees, and agents of GEPBC will be deemed to be the books, records, premises, officers, directors, employees, and agents of GIX, for purposes of, and subject to oversight pursuant to, the Act.
                    <SU>107</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>107</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    • GEPBC will take reasonable steps necessary to cause its officers, directors, employees, and agents, prior to accepting a position as an officer, director, employee or agent (as applicable) with GEPBC to consent in writing to the applicability of provisions regarding non-interference, confidentiality, books and records, compliance and cooperation, jurisdiction, and regulatory obligations, with respect to their activities related to GIX.
                    <SU>108</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>108</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article VI, Section 6.12.
                    </P>
                </FTNT>
                <P>
                    • The GEPBC Bylaws require that, so long as GEPBC controls GIX, any changes to that document must be submitted to the Exchange Board for approval, and, if such change is required to be filed with the Commission pursuant to Section 19(b) of the Act and the rules and regulations thereunder, such change shall not be effective until filed with and effective by operation of law, or filed with, and approved by, the Commission.
                    <SU>109</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>109</SU>
                         
                        <E T="03">See</E>
                         GEPBC Bylaws, Article VI, Section 6.13(b).
                    </P>
                </FTNT>
                <P>
                    The provisions discussed in this section, which are designed to help ensure the independence of GIX's regulatory function and facilitate the ability of GIX to carry out its regulatory responsibilities under, and operate in a manner consistent with, the Act, are appropriate and consistent with the requirements of the Act, particularly with Section 6(b)(1), which requires, in part, an exchange to be so organized and have the capacity to carry out the purposes of the Act.
                    <SU>110</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>110</SU>
                         15 U.S.C. 78f(b)(1).
                    </P>
                </FTNT>
                <P>
                    Further, Section 19(h)(1) of the Act 
                    <SU>111</SU>
                    <FTREF/>
                     provides the Commission with the authority “to suspend for a period not exceeding twelve months or revoke the registration of [an SRO], or to censure or impose limitations upon the activities, functions, and operations of [an SRO], if [the Commission] finds, on the record after notice and opportunity for hearing, that [the SRO] has violated or is unable to comply with any provision of the Act, the rules or regulations thereunder, or its own rules or without reasonable justification or excuse has failed to enforce compliance . . . ” with any such provision by its members (including associated persons thereof). If the Commission were to find, or become aware of, through staff review and inspection or otherwise, facts indicating any violations of the Act, including without limitation Sections 6(b)(1) and 19(g)(1),
                    <SU>112</SU>
                    <FTREF/>
                     these matters could provide the basis for a disciplinary proceeding under Section 19(h)(1) of the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>111</SU>
                         
                        <E T="03">See</E>
                         15 U.S.C. 78s(h)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>112</SU>
                         15 U.S.C. 78f(b)(1); 15 U.S.C. 78s(g)(1).
                    </P>
                </FTNT>
                <P>
                    Even in the absence of the governance provisions described above, under Section 20(a) of the Act,
                    <SU>113</SU>
                    <FTREF/>
                     any person with a controlling interest in GIX would be jointly and severally liable with and to the same extent that GIX is liable under any provision of the Act, unless the controlling person acted in good faith and did not directly or indirectly induce the act or acts constituting the violation or cause of action. In addition, Section 20(e) of the Act 
                    <SU>114</SU>
                    <FTREF/>
                     creates aiding and abetting liability for any person who knowingly provides substantial assistance to another person in violation of any provision of the Act or rule thereunder. Further, Section 21C of the Act 
                    <SU>115</SU>
                    <FTREF/>
                     authorizes the Commission to enter a cease-and-desist order against any person who has been “a cause of” a violation of any provision of the Act through an act or omission that the person knew or should have known would contribute to the violation. These provisions are applicable to GEPBC.
                </P>
                <FTNT>
                    <P>
                        <SU>113</SU>
                         15 U.S.C. 78t(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>114</SU>
                         15 U.S.C. 78t(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>115</SU>
                         15 U.S.C. 78u-3.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">3. Regulatory Oversight Committee</HD>
                <P>
                    The regulatory operations of GIX will be monitored by the Regulatory Oversight Committee of the Exchange Board. As mentioned above, the Regulatory Oversight Committee will consist only of Independent Directors.
                    <SU>116</SU>
                    <FTREF/>
                     The Regulatory Oversight Committee will be responsible for overseeing the adequacy and effectiveness of GIX's regulatory and SRO responsibilities, assessing GIX's 
                    <PRTPAGE P="16214"/>
                    regulatory performance, and assisting the Exchange Board (and committees of the Exchange Board) in reviewing GIX's regulatory plan and the overall effectiveness of GIX's regulatory functions.
                    <SU>117</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>116</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.08(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>117</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.08(a).
                    </P>
                </FTNT>
                <P>
                    Further, the Chief Regulatory Officer (“CRO”) of GIX will have general supervision over GIX's regulatory operations, including responsibility for overseeing GIX's surveillance, examination, and enforcement functions and for administering any regulatory services agreements with another SRO to which GIX is a party.
                    <SU>118</SU>
                    <FTREF/>
                     The Regulatory Oversight Committee, in consultation with the CEO of GIX, will be responsible for establishing the goals, assessing the performance, and fixing the compensation of the CRO and for recommending personnel actions involving the CRO and senior regulatory personnel.
                    <SU>119</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>118</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article IX, Section 9.03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>119</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.08(c). To the extent that the CEO of GIX has any indirect supervisory responsibility for the role or function of the CRO, including but not limited to, implementation of the budget for the regulatory function or regulatory personnel matters, the Regulatory Oversight Committee will take all steps reasonably necessary to ensure that the CEO does not compromise the regulatory autonomy and independence of the CRO or the regulatory function. 
                        <E T="03">See</E>
                         GIX LLC Agreement, Article VIII, Section 8.08(d).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">4. Regulatory Funding and Services</HD>
                <P>
                    As a prerequisite for the Commission's granting of an exchange's application for registration, an exchange must be organized and have the capacity to carry out the purposes of the Act.
                    <SU>120</SU>
                    <FTREF/>
                     Specifically, an exchange must be able to enforce compliance by its members, and persons associated with its members, with the federal securities laws and rules thereunder and the rules of the exchange.
                    <SU>121</SU>
                    <FTREF/>
                     The discussion below summarizes how GIX proposes to conduct and structure its regulatory operations.
                </P>
                <FTNT>
                    <P>
                        <SU>120</SU>
                         
                        <E T="03">See</E>
                         15 U.S.C. 78f(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>121</SU>
                         
                        <E T="03">See id. See also</E>
                         Section 19(g) of the Act, 15 U.S.C. 78s(g).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">a. Regulatory Funding</HD>
                <P>
                    To help ensure that GIX has and will continue to have adequate funding to be able to meet its responsibilities under the Act, GIX states that, if the Commission approves GIX's application for registration as a national securities exchange, GEPBC will allocate sufficient assets to GIX to enable the Exchange's operation.
                    <SU>122</SU>
                    <FTREF/>
                     Specifically, GIX represents that GEPBC will make a cash contribution to GIX of $5,000,000, “in addition to any previously-provided in-kind contributions, such as legal, regulatory, and operational assistance.” 
                    <SU>123</SU>
                    <FTREF/>
                     GIX also represents that such cash and in-kind contributions from GEPBC will be adequate to operate GIX, including the regulation of the Exchange,
                    <SU>124</SU>
                    <FTREF/>
                     and that pursuant to the GIX LLC Agreement, GEPBC will be obligated to provide such additional capital for GIX as GIX determines is necessary to meet its ongoing operating expenses related to its self-regulatory obligations.
                    <SU>125</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>122</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit I.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>123</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit I.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>124</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit I.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>125</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article V, Section 5.02(a). GIX will be required to provide 30 days advanced notice of capital calls, and GEPBC will be obligated to pay capital calls promptly upon appropriate notice. The Exchange will receive all fees, including regulatory fees and trading fees, as well as any funds received from applicable market data fees and tape revenue. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    Further, any “Regulatory Funds” received by GIX will not be used for non-regulatory purposes or distributed, advanced or allocated to GEPBC, but rather will be applied to fund the regulatory operations of GIX (including surveillance and enforcement activities), or, as applicable, used to pay restitution and disgorgement to customers.
                    <SU>126</SU>
                    <FTREF/>
                     Any excess non-regulatory funds, as solely determined by GIX, will be remitted to GEPBC in accordance with the GIX LLC Agreement.
                    <SU>127</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>126</SU>
                         
                        <E T="03">See</E>
                         GIX LLC Agreement, Article XVII, Section 17.04(b). Article I, Section 1.01 of the GIX LLC Agreement defines “Regulatory Funds” as “fees, fines, or penalties derived from the regulatory operations of [GIX],” but such term does not include “revenues derived from listing fees, market data revenues, transaction revenues, or any other aspect of the commercial operations of [GIX], even if a portion of such revenues are used to pay costs associated with the regulatory operations of [GIX].” This definition is consistent with the rules of other SROs. 
                        <E T="03">See, e.g.,</E>
                         MEMX LLC Agreement, Article XVII, Section 17.4(b); LTSE Bylaws, Article I(bb); Amended and Restated By-Laws of MIAX Exchange, Article 1(ll); By-Laws of NASDAQ PHLX LLC, Article I(ii); and By-Laws of NASDAQ BX, Inc., Article I(ii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>127</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit I.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">b. Regulatory Contract With FINRA</HD>
                <P>
                    Although GIX will be an SRO with all of the attendant regulatory obligations under the Act, it has represented to the Commission that it intends to enter into a regulatory services agreement (“RSA”) with FINRA, under which FINRA as a regulatory services provider will perform certain regulatory functions on GIX's behalf.
                    <SU>128</SU>
                    <FTREF/>
                     Specifically, GIX expects that such services will include performance of investigation, disciplinary, and hearing services.
                    <SU>129</SU>
                    <FTREF/>
                     Notwithstanding the RSA, GIX will retain legal responsibility for the regulation of its members and its market and the performance of FINRA as its regulatory services provider. Because GIX anticipates entering into an RSA with FINRA, it has not made provisions to fulfill the regulatory services that will be undertaken by FINRA. Accordingly, the Commission is conditioning the operation of GIX on a final RSA that specifies the services that will be provided to GIX.
                </P>
                <FTNT>
                    <P>
                        <SU>128</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit L. 
                        <E T="03">See also</E>
                         GIX Rule 9.100.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>129</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit L.
                    </P>
                </FTNT>
                <P>
                    It is consistent with the Act for GIX to contract with FINRA to perform certain examination, enforcement, and disciplinary functions.
                    <SU>130</SU>
                    <FTREF/>
                     These functions are fundamental elements of a regulatory program and constitute core self-regulatory functions. FINRA has the expertise and experience to perform these functions for GIX.
                    <SU>131</SU>
                    <FTREF/>
                     However, GIX, unless relieved by the Commission of its responsibility, bears the self-regulatory responsibilities and primary liability for self-regulatory failures, not the SRO retained to perform regulatory functions on GIX's behalf.
                    <SU>132</SU>
                    <FTREF/>
                     In performing these regulatory functions, however, FINRA may nonetheless bear liability for causing or aiding and abetting the failure of GIX to perform its regulatory functions.
                    <SU>133</SU>
                    <FTREF/>
                     Accordingly, although FINRA will not act on its own behalf under its SRO responsibilities in carrying out these regulatory services for GIX, FINRA may have secondary liability if, for example, the Commission finds that the contracted functions are being performed so inadequately as to cause a violation of the federal securities laws or rules thereunder by GIX.
                    <SU>134</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>130</SU>
                         For example, 24X, MEMX, LTSE, IEX, MIAX Exchange, MIAX PEARL, LLC, Nasdaq MRX, LLC, Cboe EDGA Exchange, Inc., Cboe EDGX Exchange, Inc. (“Cboe EDGX”), and Cboe BZX Exchange, Inc. have entered into RSAs with FINRA.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>131</SU>
                         
                        <E T="03">See, e.g.,</E>
                         MEMX Order, LTSE Order, and Nasdaq Order, 
                        <E T="03">supra</E>
                         note 49; IEX Order, 
                        <E T="03">supra</E>
                         note 65; and DirectEdge Exchanges Order, 
                        <E T="03">supra</E>
                         note 77. The Commission is not approving the RSA or any of its specific terms.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>132</SU>
                         
                        <E T="03">See</E>
                         15 U.S.C. 78s(g)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>133</SU>
                         For example, if failings by FINRA have the effect of leaving GIX in violation of any aspect of GIX's self-regulatory obligations, GIX would bear direct liability for the violation, while FINRA may bear liability for causing or aiding and abetting the violation. 
                        <E T="03">See, e.g.,</E>
                         MEMX Order, LTSE Order, Nasdaq Order and BATS Order, 
                        <E T="03">supra</E>
                         note 50; IEX Order, 
                        <E T="03">supra</E>
                         note 65; and DirectEdge Exchanges Order, 
                        <E T="03">supra</E>
                         note 77.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>134</SU>
                         
                        <E T="03">See, e.g.,</E>
                         MEMX Order, LTSE Order, and Nasdaq Order, 
                        <E T="03">supra</E>
                         note 49; and IEX Order, 
                        <E T="03">supra</E>
                         note 65.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">c. Rule 17d-2 Agreements</HD>
                <P>
                    Section 19(g)(1) of the Act,
                    <SU>135</SU>
                    <FTREF/>
                     among other things, requires every SRO registered as either a national securities 
                    <PRTPAGE P="16215"/>
                    exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members.
                    <SU>136</SU>
                    <FTREF/>
                     Rule 17d-2 of the Act permits SROs to propose joint plans to allocate regulatory responsibilities amongst themselves for their common rules with respect to their common members.
                    <SU>137</SU>
                    <FTREF/>
                     These agreements, which must be filed with and declared effective by the Commission, generally cover areas where each SRO's rules substantively overlap, including such regulatory functions as personnel registration and sales practices. For example, the Commission recently declared effective a plan to allocate regulatory responsibilities between FINRA and MEMX pursuant to which FINRA assumes examination and enforcement responsibility for broker-dealers that are members of both FINRA and MEMX with respect to the rules of MEMX that are substantially similar to the applicable rules of FINRA, as well as certain specified provisions of the federal securities laws.
                    <SU>138</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>135</SU>
                         15 U.S.C. 78s(g)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>136</SU>
                         15 U.S.C. 78q(d) and 15 U.S.C. 78s(g)(2), respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>137</SU>
                         
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>138</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 96101 (Oct. 18, 2022), 87 FR 64280 (Oct. 24, 2022) (File No. 4-762). 
                        <E T="03">See also, e.g.,</E>
                         Securities Exchange Act Release Nos. 86587 (Aug. 7, 2019), 84 FR 39883 (Aug. 12, 2019) (File No. 4-747) (FINRA/LTSE); 83696 (July 24, 2018), 83 FR 35682 (July 27, 2018) (File No. 4-678) (FINRA/MIAX Exchange/MIAX PEARL); 77321 (Mar. 8, 2016), 81 FR 13434 (Mar. 14, 2016) (File No. 4-697) (FINRA/ISE Mercury, LLC); 73641 (Nov. 19, 2014), 79 FR 70230 (Nov. 25, 2014) (File No. 4-678) (FINRA/MIAX Exchange); 70053 (July 26, 2013), 78 FR 46656 (Aug. 1, 2013) (File No. 4-663) (FINRA/Topaz Exchange n/k/a ISE Gemini, LLC); 59218 (Jan. 8, 2009), 74 FR 2143 (Jan. 14, 2009) (File No. 4-575) (FINRA/Boston Stock Exchange, Inc. (“BSE”)); 58818 (Oct. 20, 2008), 73 FR 63752 (Oct. 27, 2008) (File No. 4-569) (FINRA/BATS Exchange, Inc.); 55755 (May 14, 2007), 72 FR 28087 (May 18, 2007) (File No. 4-536) (National Association of Securities Dealers, Inc. (“NASD”) n/k/a FINRA) and Chicago Board of Options Exchange, Inc. concerning the CBOE Stock Exchange, LLC); 55367 (Feb. 27, 2007), 72 FR 9983 (Mar. 6, 2007) (File No. 4-529) (NASD/International Securities Exchange, LLC); and 54136 (July 12, 2006), 71 FR 40759 (July 18, 2006) (File No. 4-517) (NASD/Nasdaq).
                    </P>
                </FTNT>
                <P>
                    A Rule 17d-2 plan that is declared effective by the Commission relieves the specified SRO of those regulatory responsibilities allocated by the plan to another SRO.
                    <SU>139</SU>
                    <FTREF/>
                     GIX has represented to the Commission that it will join all applicable plans, including Rule 17d-2 plans for the allocation of regulatory responsibilities.
                    <SU>140</SU>
                    <FTREF/>
                     Similar to other exchanges, the Commission understands from GIX that it will enter into a bilateral Rule 17d-2 agreement covering common members of GIX and FINRA. This agreement will allocate to FINRA regulatory responsibility, with respect to common members, for specified regulatory and enforcement matters arising out of specified common rules and specified provisions of the Act and the rules and regulations thereunder. In addition, the Commission is conditioning operation of GIX as an exchange on GIX first joining the applicable multilateral Rule 17d-2 plans, including the multi-party Rule 17d-2 plan for the allocation of regulatory responsibilities with respect to certain Regulation NMS and Consolidated Audit Trail Rules and the multi-party Rule 17d-2 plan for the surveillance, investigation, and enforcement of common insider trading rules.
                    <SU>141</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>139</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 12935 (Oct. 28, 1976), 41 FR 49091 (Nov. 8, 1977) (Rule 17d-2 Adopting Release).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>140</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit E.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>141</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 100636 (Aug. 1, 2024), 89 FR 64517 (Aug. 7, 2024) (File No. 4-618) (multiparty plan concerning covered Regulation NMS and Consolidated Audit Trail rules); and 89972 (Sept. 23, 2020), 85 FR 61062 (Sept. 29, 2020) (File No, 4-566) (multiparty plan for insider trading rules).
                    </P>
                </FTNT>
                <P>
                    Because GIX anticipates entering into these Rule 17d-2 agreements, it has not made provision to fulfill the regulatory obligations that will be undertaken by FINRA and other SROs under these agreements with respect to common members.
                    <SU>142</SU>
                    <FTREF/>
                     Accordingly, the Commission is conditioning the operation of GIX on approval by the Commission of a Rule 17d-2 agreement that allocates the above specified matters to FINRA, and the approval of an amendment to the existing multi-party Rule 17d-2 plans specified above to add GIX as a party.
                </P>
                <FTNT>
                    <P>
                        <SU>142</SU>
                         For common members, the regulatory obligations will be covered by the Rule 17d-2 agreements, and for GIX members that are not also members of FINRA, the regulatory obligations will be covered by the RSA.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. GIX Trading System</HD>
                <P>
                    GIX will operate a fully automated electronic order book and will not maintain or operate a physical trading floor. Only Members 
                    <SU>143</SU>
                    <FTREF/>
                     of GIX and entities that enter into market access arrangements with members (collectively, “Users” 
                    <SU>144</SU>
                    <FTREF/>
                    ) will have access to the GIX system.
                    <SU>145</SU>
                    <FTREF/>
                     Users will be able to electronically submit orders to buy or sell securities traded on the Exchange through a variety of systems.
                    <SU>146</SU>
                    <FTREF/>
                     GIX will allow firms to register as market makers with affirmative and negative market making obligations.
                    <SU>147</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>143</SU>
                         “Member” means any registered broker or dealer that has been admitted to membership in the Exchange. A Member will have the status of a Member of the Exchange as that term is defined in Section 3(a)(3) of the Act. 
                        <E T="03">See</E>
                         GIX Rule 1.160(aa).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>144</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 1.160(bb).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>145</SU>
                         To obtain authorized access to the GIX system, each User must enter into a User Agreement with GIX. 
                        <E T="03">See</E>
                         GIX Rule 11.130(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>146</SU>
                         For a discussion of the means of access to GIX, 
                        <E T="03">see</E>
                         Form 1, Exhibit E-1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>147</SU>
                         
                        <E T="03">See</E>
                         GIX Rules 11.150 through 11.152. GIX's rules relating to market makers are similar to the rules of other national securities exchanges. 
                        <E T="03">See, e.g.,</E>
                         MEMX Rules 11.17 through 11.20 and Cboe EDGX Rules 11.17 through 11.20.
                    </P>
                </FTNT>
                <P>
                    Users may submit orders to the Exchange as Limit Orders, Market Orders, or Pegged Orders.
                    <SU>148</SU>
                    <FTREF/>
                     Orders must be submitted with one of the following time-in-force instructions, as applicable: Immediate-or-Cancel; Day; Fill-or-Kill; Good `til Time, and Regular Hours Only.
                    <SU>149</SU>
                    <FTREF/>
                     Users may submit orders with the display instructions of Displayed or Non-Displayed.
                    <SU>150</SU>
                    <FTREF/>
                     A Limit Order with a Displayed instruction also may include a Reserve Quantity.
                    <SU>151</SU>
                    <FTREF/>
                     Displayed orders will be displayed on an anonymous basis at a specified price.
                    <SU>152</SU>
                    <FTREF/>
                     Orders may be entered as a Round Lot, Odd Lot, or Mixed Lot.
                    <SU>153</SU>
                    <FTREF/>
                     In addition, a User may attach a Minimum Execution Quantity instruction to a Limit Order.
                    <SU>154</SU>
                    <FTREF/>
                     Users also may choose to designate orders as GIX Only or Post Only.
                    <SU>155</SU>
                    <FTREF/>
                     GIX's proposed order types and instructions are similar to order types and instructions approved by the Commission and currently available on other national securities exchanges.
                    <SU>156</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>148</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 11.190. Limit Orders may be designated as Intermarket Sweep Orders. 
                        <E T="03">See</E>
                         GIX Rule 11.190(c)(6). Pegged Orders may be designated as either a Primary Peg or a Midpoint Peg. 
                        <E T="03">See</E>
                         GIX Rule 11.190(c)(7)(i) and (ii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>149</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 11.190(d).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>150</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 11.190(c)(1). Market Orders and Pegged Orders are not eligible for display. 
                        <E T="03">See</E>
                         GIX Rules 11.190(b)(2)(C) and 11.190(c)(7)(E).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>151</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 11.190(b)(1)(F).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>152</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 11.230(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>153</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit E-2, and GIX Rule 11.180(a)-(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>154</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 11.190(b)(1)(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>155</SU>
                         
                        <E T="03">See</E>
                         GIX Rules 11.190(c)(3) and (4) and (c)(7)(G).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>156</SU>
                         
                        <E T="03">See, e.g.,</E>
                         MEMX Rules 11.6 and 11.8 and Cboe EDGX Rules 11.6 and 11.8.
                    </P>
                </FTNT>
                <P>
                    GIX will offer a Random Replenishment instruction in connection with a Limit Order submitted with a Reserve Quantity instruction.
                    <SU>157</SU>
                    <FTREF/>
                     In addition to 
                    <PRTPAGE P="16216"/>
                    randomizing the size of the refreshed displayed portion, this instruction will allow the User to elect to have the GIX system randomly replenish the displayed replenishment quantity at different time intervals ranging up to one millisecond following each execution that triggers replenishment.
                    <SU>158</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>157</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit E-2, and GIX Rule 11.190(c)(2)(ii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>158</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 11.190(c)(2)(ii).
                    </P>
                </FTNT>
                <P>
                    The GIX system will continuously and automatically match orders pursuant to price/time priority. For equally-priced trading interest in time priority, generally GIX will give first priority to the portion of a Limit Order with a displayed instruction over Limit Orders with a non-displayed instruction, Primary Pegged Orders, Midpoint Pegged Orders, and Reserve Quantity of Limit Orders.
                    <SU>159</SU>
                    <FTREF/>
                     With respect to the price of executions that would occur on GIX, the GIX system is designed to comply with the order protection requirements of Rule 611 of Regulation NMS 
                    <SU>160</SU>
                    <FTREF/>
                     by requiring that, for any execution to occur on GIX during regular trading hours, the price must be equal to, or better than, the Protected NBBO unless an exception to Rule 611 applies.
                    <SU>161</SU>
                    <FTREF/>
                     Orders may be executed on the Exchange during the Regular Market Session or during Pre- and Post-Market Sessions; 
                    <SU>162</SU>
                    <FTREF/>
                     however, some order types and functionality are available only during the Regular Market Session.
                    <SU>163</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>159</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 11.220. 
                        <E T="03">See also</E>
                         Form 1, Exhibit E-2. The highest-priced order to buy (lowest-priced order to sell) will have priority over all other orders to buy (sell) in all cases.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>160</SU>
                         17 CFR 242.611.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>161</SU>
                         
                        <E T="03">See</E>
                         GIX Rules 1.160(al) (defining “Protected NBBO”) and 11.230(a)(2).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>162</SU>
                         GIX's Regular Market Session will run from 9:30 am ET to 4:00 pm ET, its Pre-Market Session will run from 7:00 am ET to 9:30 am ET, and its Post-Market Session will run from 4:00 pm ET to 5:00 pm ET. 
                        <E T="03">See</E>
                         GIX Rules 1.160(aq), (ai) and (aj).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>163</SU>
                         
                        <E T="03">See</E>
                         GIX Rules 11.190(a)-(c).
                    </P>
                </FTNT>
                <P>
                    In addition, GIX's rules are designed to address locked and crossed markets, as required by Rule 610(d) of Regulation NMS,
                    <SU>164</SU>
                    <FTREF/>
                     in that they are designed not to disseminate interest that would lock or cross a protected quote, to require Users to reasonably avoid displaying interest that locks or crosses any protected quotation, and are reasonably designed to assure the reconciliation of locked or crossed interest.
                    <SU>165</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>164</SU>
                         17 CFR 242.610(d).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>165</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 11.230(f). 
                        <E T="03">See also</E>
                         GIX Rule 11.190(g) (providing that price sliding orders that at the time of entry would create a violation of Rule 610(d) of Regulation NMS, 17 CFR 242.610(d) by locking or crossing a Protected Quotation will be ranked and displayed at one minimum price variant (“MPV”) below the current national best offer (for bids) or one MPV above the current national best bid (for offers)).
                    </P>
                </FTNT>
                <P>
                    In addition, GIX will offer outbound routing functionality through non-affiliated routing broker-dealers.
                    <SU>166</SU>
                    <FTREF/>
                     A Member's use of the order routing functionality provided by the Exchange through a non-affiliated routing broker-dealer is entirely optional and Members may use other broker-dealers to route out to other trading centers.
                    <SU>167</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>166</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 2.220.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>167</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 2.220(a)(3).
                    </P>
                </FTNT>
                <P>
                    The Commission finds that GIX's trading rules are consistent with the Act and, in particular, the Section 6(b)(5) requirement that an exchange's rules be designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanisms of a free and open market and a national market system, and protect investors and the public interest.
                    <SU>168</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>168</SU>
                         
                        <E T="03">See</E>
                         15 U.S.C. 78f(b)(5). GIX's trading rules, including its rules relating to market makers, order types and instructions, priority, execution, and opening processes, are similar to existing exchanges' trading rules. 
                        <E T="03">See, e.g.,</E>
                         Chapter XI of the MEMX rulebook and Chapter XI of the Cboe EDGX rulebook.
                    </P>
                </FTNT>
                <P>
                    GIX's proposed outbound routing rule is comparable to rules the Commission has approved for other exchanges that utilize non-affiliated routing brokers.
                    <SU>169</SU>
                    <FTREF/>
                     The outbound routing functionality of GIX is consistent with the Act and, in particular, the Section 6(b)(5) requirement that an exchange's rules be designed to promote just and equitable principles of trade, remove impediments to and perfect the mechanism of a free and open market and a national market system, protect investors and the public interest, and not permit unfair discrimination between customer, issuers, brokers or dealers.
                    <SU>170</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>169</SU>
                         
                        <E T="03">See, e.g.,</E>
                         MIAX Options Exchange Rule 529 and MIAX Pearl Options Exchange Rule 529.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>170</SU>
                         
                        <E T="03">See</E>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <P>
                    As a national securities exchange, GIX will be a trading center whose quotations can be “automated quotations” under Rule 600(b)(6).
                    <SU>171</SU>
                    <FTREF/>
                     GIX has designed itself to qualify by being an “automated trading center” under Rule 600(b)(7) whose best-priced, displayed quotation will be a “protected quotation” under Rules 600(b)(81) and 600(b)(82), and for purposes of Rule 611.
                    <SU>172</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>171</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 11.230(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>172</SU>
                         
                        <E T="03">See</E>
                         17 CFR 242.600(b)(81)-(82) and 17 CFR 242.611.
                    </P>
                </FTNT>
                <P>
                    To meet their regulatory responsibilities under Rule 611(a) of Regulation NMS, other trading centers will be required to have sufficient notice of new protected quotations, as well as all necessary information and technical specifications.
                    <SU>173</SU>
                    <FTREF/>
                     It would be a reasonable policy and procedure under Rule 611(a) to require that industry participants begin treating GIX's best bid and best offer as a protected quotation as soon as possible but no later than 90 days after the date of this order, or such later date as GIX begins operation as a national securities exchange. The Commission has taken the same position with other new equities exchanges.
                    <SU>174</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>173</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 53829 (May 18, 2006), 71 FR 30038, 30041 (May 24, 2006) (File No. S7-10-04) (extending the compliance dates for Rule 610 and Rule 611 of Regulation NMS under the Act).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>174</SU>
                         
                        <E T="03">See, e.g.,</E>
                         MEMX Order, 
                        <E T="03">supra</E>
                         note 50, at 27461; BATS Order, 
                        <E T="03">supra</E>
                         note 50, at 49505; and DirectEdge Exchanges Order, 
                        <E T="03">supra</E>
                         note 77, at 13163.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">D. Technology Agreement With MEMX Technology</HD>
                <HD SOURCE="HD3">1. Delivery, Licenses and Services Agreement (“DLSA”)</HD>
                <P>
                    The Exchange will utilize trading technology and systems (collectively, the “System”) 
                    <SU>175</SU>
                    <FTREF/>
                     developed by MEMX Technologies, LLC (“MEMX Technologies”),
                    <SU>176</SU>
                    <FTREF/>
                     a subsidiary of MEMX Holdings LLC, and provided to the Exchange pursuant to a DLSA between MEMX Technologies and the Exchange.
                    <SU>177</SU>
                    <FTREF/>
                     Specifically, pursuant to the DLSA, MEMX Technologies will “supply all necessary hardware and connectivity to operate the System, install market-relevant software on the hardware platform, maintain the hardware and software, including updates to necessary software and systems.” 
                    <SU>178</SU>
                    <FTREF/>
                     MEMX Technologies will support intra-day compliance monitoring by GIX and provide timely reporting to GIX of any potential Regulation SCI events or other operational issues with the System.
                    <SU>179</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>175</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit E (defining “System” for purposes of the DLSA).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>176</SU>
                         GIX does not own the System but states that it has obtained all necessary licenses and authorizations from MEMX Technologies in order for GIX and its Members and Users to fully utilize the System. 
                        <E T="03">See</E>
                         Form 1, Exhibit E.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>177</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit E. Among other things, the DLSA sets forth a multi-year term with automatic renewal provisions that requires MEMX Technologies to deliver the System and run industry connectivity testing and other functional-based testing. 
                        <E T="03">See id.</E>
                         The DLSA also provides for transition services to the extent either party decides to terminate the arrangement. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>178</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit C.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>179</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    Although MEMX Technologies would provide the technology support services, GIX will be responsible for the daily operations of its market.
                    <SU>180</SU>
                    <FTREF/>
                     To ensure logical and physical separation from MEMX Technologies and its affiliates, 
                    <PRTPAGE P="16217"/>
                    the System will operate a separate instance of MEMX Technologies' core matching engine technology and software, utilizing separate servers from the MEMX Exchange system and separate connections for GIX Members to connect to GIX.
                    <SU>181</SU>
                    <FTREF/>
                     Under the terms of the DLSA, GIX may request MEMX Technologies to develop and implement (for a fee to be determined by the parties) technology changes that change the operation of the GIX System. GIX is not obligated to agree to, accept, or adopt changes to the System that are not essential to the operation of its instance of the System.
                    <SU>182</SU>
                    <FTREF/>
                     Additionally, GIX stated that the “trading platforms operated by MEMX Technologies (including GIX LLC, MEMX Exchange, and any other exchanges or trading platforms operated by MEMX Technologies) currently are and will be segregated to ensure that GIX is not deemed to be a facility of MEMX Exchange.” 
                    <SU>183</SU>
                    <FTREF/>
                     MEMX Technologies will not use or disclose information or data (i) about or originating with GIX in its dealings with MEMX Exchange or any other platform or (ii) about or originating with MEMX Exchange or any other platform in its dealing with GIX.
                    <SU>184</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>180</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit E.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>181</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>182</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>183</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit C.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>184</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    GIX, not MEMX Technologies, has regulatory responsibility over the GIX System, and therefore GIX as an SRO is fully responsible for discharging its obligations as a registered national securities exchange. Further, GIX will interact with the MEMX Exchange, including MEMX Exchange's routing broker-dealer, on the same arms-length commercial terms as GIX interacts with other registered national securities exchanges and their routing broker-dealers.
                    <SU>185</SU>
                    <FTREF/>
                     Membership in the MEMX Exchange will not confer any advantages when trading on GIX (or vice versa), such as faster connections, lower fees, or preferential treatment of orders on the GIX System.
                    <SU>186</SU>
                    <FTREF/>
                     Membership in the MEMX Exchange will also not be a requirement for membership in or connection to GIX (or vice versa).
                    <SU>187</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>185</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit E.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>186</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>187</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    After considering the disclosures GIX made in the Form 1 as amended, the Commission finds that GIX's proposal to utilize technology provided and maintained by MEMX Technologies is consistent with the Act, in particular with Section 6(b)(1) of the Act,
                    <SU>188</SU>
                    <FTREF/>
                     which requires an exchange to be so organized and have the capacity to carry out the purposes of the Act and to comply and enforce compliance by its members and persons associated with its members with the Act and the rules thereunder. The arrangement between GIX and MEMX Technologies, as described in the amended Form 1, will enable the Exchange to utilize trading platform technology that is already in use with an experienced operator.
                    <SU>189</SU>
                    <FTREF/>
                     However, the terms of the DLSA between GIX and MEMX Technologies, as described in the amended Form 1, are reasonably designed not to confer upon either MEMX Exchange or GIX Members any advantages when trading on GIX, or vice versa, such as faster connections, lower fees, or preferential treatment of orders on the GIX System.
                    <SU>190</SU>
                    <FTREF/>
                     GIX will retain responsibility for overseeing the daily market operations of its trading system; MEMX Technologies will be responsible for performing all necessary maintenance and remediation of problems relating to the logical and physical infrastructure, in accordance with the DLSA.
                    <SU>191</SU>
                    <FTREF/>
                     Therefore, GIX will be capable of exercising sufficient control over the operation of its System, and will be sufficiently independent from MEMX Technologies, to enable GIX to comply with the requirements under the Act and the rules thereunder.
                </P>
                <FTNT>
                    <P>
                        <SU>188</SU>
                         15 U.S.C. 78f(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>189</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 100783 (Aug. 20, 2024), 89 FR 68481 (Aug. 26, 2024) (SR-LTSE-2024-03) (approval of proposed rule change by Long-Term Stock Exchange to transition from its current trading platform to a new trading platform that uses technology provided by MEMX Technologies); and 24X Order, 
                        <E T="03">supra</E>
                         note 50.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>190</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit E.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>191</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit E.
                    </P>
                </FTNT>
                <P>
                    The provisions of the DLSA described above demonstrate that the support services provided by MEMX Technology are adequate to enable GIX to meet its self-regulatory obligations. In order for GIX to perform its regulatory obligations, the DLSA provides GIX with enumerated audit rights to review books and records of MEMX Technologies related to the provision of services under the DLSA, and the ability either to produce itself, or direct MEMX Technologies to produce, MEMX Technologies documents and information related to the operation of the System to the Commission or other regulators or parties upon request, subject to appropriate due process.
                    <SU>192</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>192</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    Finally, GIX will have regulatory responsibility for its trading System and will be responsible to fully discharge its obligations as a national securities exchange. GIX will also be responsible for its market and cross-market surveillance through the RSA, described above,
                    <SU>193</SU>
                    <FTREF/>
                     and maintain its independent regulatory function to oversee the RSA and will not rely on or utilize MEMX Exchange or its personnel to fulfill any aspect of those obligations on GIX's behalf.
                </P>
                <FTNT>
                    <P>
                        <SU>193</SU>
                         
                        <E T="03">See supra</E>
                         section III.B.4.b. (discussing GIX's RSA with FINRA).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Regulation SCI</HD>
                <P>
                    As a registered national securities exchange, GIX will be an “SCI entity” responsible for compliance with the requirements of Regulation Systems Compliance and Integrity (“Regulation SCI”).
                    <SU>194</SU>
                    <FTREF/>
                     Regulation SCI requires SCI entities to establish written policies and procedures reasonably designed to ensure that their applicable systems have levels of capacity, integrity, resiliency, availability, and security adequate to maintain their operational capability and promote the maintenance of fair and orderly markets, and that they operate in a manner that complies with the Act.
                    <SU>195</SU>
                    <FTREF/>
                     In addition, Regulation SCI requires SCI entities to take corrective action with respect to SCI events (defined to include systems disruptions, systems compliance issues, and systems intrusions), notify the Commission of such events, and disseminate information about certain SCI events to affected members or participants (and, for certain major SCI events, to all members or participants of the SCI entity).
                    <SU>196</SU>
                    <FTREF/>
                     Moreover, Regulation SCI requires SCI entities to conduct a review of their systems by objective personnel at least annually, submit quarterly reports regarding completed, ongoing, and planned material changes to their SCI systems to the Commission,
                    <SU>197</SU>
                    <FTREF/>
                     and maintain certain books and records.
                    <SU>198</SU>
                    <FTREF/>
                     It also requires SCI entities to mandate participation by designated members or participants in scheduled testing of the operation of their business continuity and disaster recovery plans, including backup systems, and to coordinate such testing on an industry- or sector-wide basis with other SCI entities.
                    <SU>199</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>194</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No.73639 (Nov. 19, 2014), 79 FR 72252 (Dec. 5, 2014) (“Regulation SCI 2014 Adopting Release”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>195</SU>
                         
                        <E T="03">See</E>
                         17 CFR 242.1001.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>196</SU>
                         
                        <E T="03">See</E>
                         17 CFR 242.1002. 
                        <E T="03">See also</E>
                         17 CFR 242.1000 and 17 CFR 242.1006.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>197</SU>
                         
                        <E T="03">See</E>
                         17 CFR 242.1003. 
                        <E T="03">See also</E>
                         17 CFR 242.1000.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>198</SU>
                         
                        <E T="03">See</E>
                         17 CFR 242.1005. 
                        <E T="03">See also</E>
                         17 CFR 242.1007.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>199</SU>
                         
                        <E T="03">See</E>
                         17 CFR 242.1004.
                    </P>
                </FTNT>
                <P>
                    Regulation SCI applies to an SCI entity's “SCI systems,” which are systems that directly support any one of six key securities market functions—
                    <PRTPAGE P="16218"/>
                    trading, clearance and settlement, order routing, market data, market regulation, and market surveillance (“SCI systems”). Regulation SCI also applies to “indirect SCI systems,” which are any systems that, if breached, are likely to pose a security threat to SCI systems. Further, certain SCI systems that are “critical SCI systems” are held to certain heightened requirements under Regulation SCI.
                    <SU>200</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>200</SU>
                         
                        <E T="03">See</E>
                         17 CFR 242.1000 (definitions of “SCI systems,” “indirect SCI systems,” and “critical SCI systems”).
                    </P>
                </FTNT>
                <P>
                    The Exchange has obtained commitments from MEMX Technologies in connection with the Exchange's engagement of MEMX Technologies to develop, license, and operate the System on behalf of the Exchange to, among other things, address how this arrangement is consistent with the requirements of Regulation SCI.
                    <SU>201</SU>
                    <FTREF/>
                     The Exchange acknowledges that as the SCI entity contracting with MEMX Technologies to provide software and hardware to operate both SCI systems and indirect SCI systems, GIX will have full responsibility for ensuring that it is in compliance with all aspects of Regulation SCI, including the requirements for its backup and recovery capabilities.
                    <SU>202</SU>
                    <FTREF/>
                     In addition, the DLSA includes commitments from MEMX Technologies as developer, licensor, and operator of the System to cooperate with the Exchange and provide the Exchange with the information and access that the Exchange reasonably believes will allow the Exchange to satisfy its obligations under Regulation SCI.
                    <SU>203</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>201</SU>
                         
                        <E T="03">See</E>
                         Form 1, Exhibit E.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>202</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>203</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD2">E. Discipline and Oversight of Members</HD>
                <P>
                    As stated above, one prerequisite for the Commission's grant of an exchange's application for registration is that a proposed exchange must be so organized and have the capacity to be able to carry out the purposes of the Act.
                    <SU>204</SU>
                    <FTREF/>
                     Specifically, an exchange must be able to enforce compliance by its members and persons associated with its members with the federal securities laws and rules thereunder and the rules of the exchange.
                    <SU>205</SU>
                    <FTREF/>
                     As also stated above, pursuant to an RSA with FINRA, FINRA will perform many of the initial disciplinary processes on behalf of GIX.
                    <SU>206</SU>
                    <FTREF/>
                     For example, FINRA will investigate potential securities laws violations, issue complaints, and conduct hearings pursuant to GIX rules. Appeals from disciplinary decisions will be heard by the GIX Appeals Committee,
                    <SU>207</SU>
                    <FTREF/>
                     and the GIX Appeals Committee's decision shall be final unless the Exchange Board on its own initiative orders review of a disciplinary decision.
                    <SU>208</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>204</SU>
                         
                        <E T="03">See</E>
                         15 U.S.C. 78f(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>205</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>206</SU>
                         
                        <E T="03">See supra</E>
                         notes 127-128 and accompanying text. 
                        <E T="03">See also</E>
                         GIX Rule 9.001 (stating that GIX and FINRA are parties to a regulatory contract, pursuant to which FINRA will perform certain functions described in the Rule 9.000 Series on behalf of GIX).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>207</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 1.160(w) (defining GIX Appeals Committee).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>208</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 9.349(c).
                    </P>
                </FTNT>
                <P>
                    GIX's rules provide that the Exchange has disciplinary jurisdiction over its Members so that it can enforce its Members' compliance with its rules and the federal securities laws and rules.
                    <SU>209</SU>
                    <FTREF/>
                     The Exchange's rules also permit GIX to sanction Members for violations of its rules and violations of the federal securities laws and rules by, among other things, expelling or suspending Members, limiting Members' activities, functions, or operations, fining or censuring Members, or suspending or barring a person from being associated with a Member, or any other fitting sanction.
                    <SU>210</SU>
                    <FTREF/>
                     GIX's rules also provide for the imposition of fines for certain minor rule violations in lieu of commencing disciplinary proceedings.
                    <SU>211</SU>
                    <FTREF/>
                     Accordingly, as a condition to the operation of GIX, a Minor Rule Violation Plan (“MRVP”) filed by GIX under Act Rule 19d-1(c)(2) must be declared effective by the Commission.
                    <SU>212</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>209</SU>
                         
                        <E T="03">See generally</E>
                         GIX Rule Series 9.200.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>210</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 8.310.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>211</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 9.218.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>212</SU>
                         17 CFR 240.19d-1(c)(2).
                    </P>
                </FTNT>
                <P>
                    The Commission finds that GIX's rules concerning its disciplinary and oversight programs are consistent with the requirements of Sections 6(b)(6) and 6(b)(7) of the Act 
                    <SU>213</SU>
                    <FTREF/>
                     in that they provide fair procedures for the disciplining of members and persons associated with members. The Commission further finds that the rules of GIX provide it with the ability to comply, and with the ability to enforce compliance by its members and persons associated with its members, with the provisions of the Act, the rules and regulations thereunder, and the rules of GIX.
                    <SU>214</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>213</SU>
                         15 U.S.C. 78f(b)(6) and (b)(7).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>214</SU>
                         
                        <E T="03">See</E>
                         15 U.S.C. 78f(b)(1).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">F. Listing and Trading Securities on GIX</HD>
                <HD SOURCE="HD3">1. Dual Listing on GIX</HD>
                <P>
                    GIX will not be a primary listing market for securities. However, under GIX's rules, an issuer whose securities are, or at the time of listing on GIX will be, listed on another national securities exchange registered with the Commission pursuant to Section 6(a) of the Act (its “primary listing exchange”) may apply to also list those securities on the Exchange.
                    <SU>215</SU>
                    <FTREF/>
                     An issuer whose securities are listed on GIX and another national securities exchange must at all times continue to be in good standing with its primary listing exchange.
                    <SU>216</SU>
                    <FTREF/>
                     Such issuers are required to notify: (1) GIX promptly if it receives oral or written notification from its primary listing exchange that such class of listed securities has fallen below the continued listing requirements of such market, and conversely (2) the primary listing exchange if it receives oral or written notification that such class of listed securities has fallen below GIX's continued listing requirements.
                    <SU>217</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>215</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 14.105(a) and GIX Rule 14.301(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>216</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 14.105(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>217</SU>
                         
                        <E T="03">See</E>
                         GIX Rule 14.105(c).
                    </P>
                </FTNT>
                <P>
                    GIX's original Form 1 would have required issuers that dually list their securities on GIX and another national securities exchange to satisfy proposed Green Governance Standards in addition to the initial and continued listing standards described below.
                    <SU>218</SU>
                    <FTREF/>
                     Commenters on the Form 1 commented only on the Green Governance Standards, weighing both in support and in opposition to them.
                    <SU>219</SU>
                    <FTREF/>
                     In Amendment No. 1, GIX replaced its proposed Green Governance Standards with Sustainability Governance Standards.
                    <SU>220</SU>
                    <FTREF/>
                     Subsequently, in Amendment No. 2, GIX removed those Sustainability Governance Standards from the Form 1.
                    <SU>221</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>218</SU>
                         GIX stated that the proposed Green Governance Standards were designed to provide investors with access to accountable and enforceable information about the quality of a listed company's commitment to sustainable ways of doing business. 
                        <E T="03">See</E>
                         OIP, 89 FR at 85265, text accompanying n.11.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>219</SU>
                         A form letter opposing the Green Governance Standards was received from multiple commenters; all other comments support the Green Governance Standards. 
                        <E T="03">See supra</E>
                         note 2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>220</SU>
                         
                        <E T="03">See supra</E>
                         note 8.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>221</SU>
                         
                        <E T="03">See supra</E>
                         note 9.
                    </P>
                </FTNT>
                <P>
                    The Commission finds that GIX's dual listing provisions as amended are consistent with the Act. They are substantively identical to those of LTSE, which the Commission previously approved.
                    <SU>222</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>222</SU>
                         
                        <E T="03">See</E>
                         LTSE Order, 
                        <E T="03">supra</E>
                         note 50.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Initial and Continued Listing Standards</HD>
                <P>
                    The Commission finds that GIX's proposed initial and continuing listing standards are consistent with the requirements of the Act. With respect to the standards relating to the listing and delisting of companies, including procedures and prerequisites for initial 
                    <PRTPAGE P="16219"/>
                    and continued listing on GIX, the obligations of issuers with securities listed on GIX, as well as rules describing the application and qualification process, GIX's proposed listing rules for securities are substantially similar to the analogous rules of LTSE and/or Nasdaq Capital Market (“NCM”).
                    <SU>223</SU>
                    <FTREF/>
                     With respect to GIX Rule 14.201, which is virtually identical to the analogous rule of LTSE, GIX requires a company seeking the initial listing of one or more classes of securities on GIX to participate in a free confidential pre-application eligibility review to determine whether the company meets GIX's listing criteria and, if, upon completion of this review, GIX determines that a company is eligible for listing, GIX will notify that company in writing that it has been cleared to submit an original listing application. If, upon completion of this review, the Exchange determines that a company is ineligible for listing, the company may request a review of GIX's determination pursuant to the process set forth in GIX Rule 9.555.
                </P>
                <FTNT>
                    <P>
                        <SU>223</SU>
                         The Commission has previously determined that the analogous initial and continuing listing standards of LTSE and NCM are consistent with the Act. 
                        <E T="03">See</E>
                         LTSE Rules, Chapter 14; Nasdaq Rules Chapter 5000. To be eligible for listing on GIX (unlike LTSE and NCM), a company must be able to demonstrate that it is listed and in good standing on another national securities exchange at the time the Company files its application for listing on GIX and at the time that it lists on GIX. 
                        <E T="03">See</E>
                         GIX Rule 14.301(c).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">3. Corporate Governance Standards</HD>
                <P>
                    GIX has proposed corporate governance standards in connection with securities to be listed and traded on GIX that are substantially similar to the analogous corporate governance listing standards of other exchanges.
                    <SU>224</SU>
                    <FTREF/>
                     Included in these standards are rules requiring a majority of directors on a listed issuer's board to be independent; rules and independence requirements relating to audit and compensation committees and the oversight of nominations; rules requiring listed issuers to adopt codes of conduct applicable to all their directors, officers and employees; and rules regarding the recovery of erroneously awarded compensation to executive officers.
                    <SU>225</SU>
                    <FTREF/>
                     The Commission finds that GIX's proposed corporate governance standards for listed issuers contained in its rules are consistent with the Act.
                    <SU>226</SU>
                    <FTREF/>
                     The Commission further finds that GIX's rules satisfy the requirements of Section 10A(m) of the Act and Rule 10A-3 thereunder and Section 10C of the Act and Rule 10C-1 thereunder, relating to audit and compensation committees, respectively.
                    <SU>227</SU>
                    <FTREF/>
                     GIX's corporate governance standards for listed issuers that require a fully independent audit committee are designed to promote independent and objective review and oversight of the accounting and auditing practices of listed issuers and to enhance audit committee independence, authority, and responsibility by implementing the standards set forth in Rule 10A-3.
                    <SU>228</SU>
                    <FTREF/>
                     In addition, GIX's proposed requirements relating to independent compensation committees for listed issuers would benefit investors by implementing the standards set forth in Rule 10C-1, which requires that the independent directors of a listed issuer oversee executive compensation matters, consider independence criteria before retaining compensation advisers and have responsibility for the appointment, compensation and oversight of these advisers.
                    <SU>229</SU>
                    <FTREF/>
                     The corporate governance standards embodied in the listing rules of national securities exchanges, in particular, play an important role in assuring that companies listed for trading on the exchanges' markets observe good governance practices, including a reasoned, fair, and impartial approach for determining the compensation of corporate executives.
                    <SU>230</SU>
                    <FTREF/>
                     The Exchange's rules will foster greater transparency, accountability, and objectivity in the oversight of compensation practices of listed issuers and in the decision-making processes of their compensation committees.
                    <SU>231</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>224</SU>
                         
                        <E T="03">See</E>
                         LTSE Rule Series 14.440, Nasdaq Rule Series 5600, and IEX Rule Series 14.400.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>225</SU>
                         
                        <E T="03">See</E>
                         GIX Rules 14.405; 14.406; and 14.409.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>226</SU>
                         The Commission has previously determined that the analogous corporate governance standards of other exchanges, with which GIX's rules are commensurate, are consistent with the Act. 
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 48745 (Nov. 4, 2003), 68 FR 64154 (Nov. 12, 2003); IEX Order, 
                        <E T="03">supra</E>
                         note 65; and LTSE Order, 
                        <E T="03">supra</E>
                         note 50.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>227</SU>
                         
                        <E T="03">See</E>
                         15 U.S.C. 78f(b)(5); 15 U.S.C. 78j-1(m); 15 U.S.C. 78j-3; 17 CFR 240.10A-3; 17 CFR 240.10C-1.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>228</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 47654 (Apr. 9, 2003), 68 FR 18788 (Apr. 16, 2003).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>229</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 67220 (June 20, 2012), 77 FR 38422, 38425 (June 27, 2012).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>230</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 68640 (Jan. 11, 2013), 78 FR 4554, 4563 (Jan. 22, 2013) (approving SR-NASDAQ-2012-109 relating to rules for compensation committees for listed companies, upon which GIX's proposed rules for compensation committees are based).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>231</SU>
                         
                        <E T="03">See id.</E>
                         (finding Nasdaq compensation committee rules consistent with the Act). 
                        <E T="03">See also</E>
                         Securities Exchange Act Release No. 68639 (Jan. 11, 2013), 78 FR 4570 (Jan. 22, 2013) (order approving NYSE's compensation committee rules, which was cited by Nasdaq as precedent for a subsequent amendment to its own rules that was filed on an immediately effective basis; 
                        <E T="03">see</E>
                         Securities Act Release No. 71037 (Dec. 11, 2013), 78 FR 76179 (Dec. 16, 2013) (SR-NASDAQ-2013-147).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">4. Trading on GIX</HD>
                <P>
                    GIX proposes to trade securities pursuant to unlisted trading privileges (“UTP”). GIX Rule 11.120(e) establishes the Exchange's authority to trade securities on a UTP basis. GIX Rule 11.120(e)(1) provides that GIX may extend UTP to any security that is an NMS stock that is listed on another national securities exchange or with respect to which UTP may otherwise be extended in accordance with Section 12(f) of the Act.
                    <SU>232</SU>
                    <FTREF/>
                     That rule further provides that any such security would be subject to all GIX rules applicable to trading on GIX, unless otherwise noted.
                </P>
                <FTNT>
                    <P>
                        <SU>232</SU>
                         15 U.S.C. 78
                        <E T="03">l</E>
                        (f).
                    </P>
                </FTNT>
                <P>
                    GIX Rule 11.120(e)(2)(B) establishes additional rules for trading of UTP Exchange Traded Products, which are defined in 11.120(e)(2)(A). GIX Rule 11.120(e)(2)(B)(i) provides that GIX will distribute an information circular prior to the commencement of trading in a UTP Exchange Traded Product that generally would include the same information as the information circular provided by the listing exchange, including (a) the special risks of trading the Exchange Traded Product, (b) the Exchange's rules that would apply to the Exchange Traded Product and (c) information about the dissemination of value of the underlying assets or indices. GIX Rule 11.120(e)(2)(B)(ii) establishes certain requirements for members that have customers that trade UTP Exchange Traded Products.
                    <SU>233</SU>
                    <FTREF/>
                     GIX Rule 11.120(e)(2)(D) also establishes certain requirements for any member registered as a market maker in a UTP Exchange Traded Product that derives its value from one or more currencies, commodities, or derivatives based on one or more currencies or commodities, or is based on a basket or index composed of currencies or commodities. GIX Rule 11.120(e)(2)(E) provides that the Exchange will enter into comprehensive surveillance sharing agreements with markets that trade components of the index or portfolio on which the UTP Exchange Traded Product is based to the same extent as the listing exchange's rules require the listing exchange to enter into comprehensive surveillance sharing agreements with such markets.
                </P>
                <FTNT>
                    <P>
                        <SU>233</SU>
                         GIX Rule 11.120(e)(2)(B)(ii)(a.) (establishing prospectus delivery requirements).
                    </P>
                </FTNT>
                <P>
                    The Commission finds that the Exchange's proposed approach to the trading of securities on a UTP basis, as set forth in GIX Rule 11.120, is consistent with Section 12(f) of the Act and Rule 12f-5 thereunder.
                    <SU>234</SU>
                    <FTREF/>
                     Rule 12f-
                    <PRTPAGE P="16220"/>
                    5 under the Act requires an exchange that extends unlisted trading privileges to securities to have in effect a rule or rules providing for transactions in the class or type of security to which the exchange extends unlisted trading privileges.
                    <SU>235</SU>
                    <FTREF/>
                     GIX Rule 11.120(e)(1) includes a provision that any security traded UTP on the Exchange “shall be subject to all Exchange rules applicable to trading on the Exchange, unless otherwise noted.” The provisions in GIX Rule 11.120 are substantively the same as the existing rules of other national securities exchanges.
                    <SU>236</SU>
                    <FTREF/>
                     Accordingly, pursuant to Section 12(f) of the Act and Rule 12f-5 thereunder, GIX will be permitted to extend unlisted trading privileges to securities of the same class, subject to the trading rules of the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>234</SU>
                         15 U.S.C. 78
                        <E T="03">l</E>
                        (f); 17 CFR 240.12f-5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>235</SU>
                         
                        <E T="03">See</E>
                         17 CFR 240.12f-5. 
                        <E T="03">See also</E>
                         Securities Exchange Act Release No. 35737 (Apr. 21, 1995), 60 FR 20891 (Apr. 28, 1995) (File No. S7-4-95) (adopting Rule 12f-5 under the Act).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>236</SU>
                         
                        <E T="03">See, e.g.,</E>
                         LTSE Rule 14.350 and MEMX Rule 14.1.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">G. Section 11(a) of the Act</HD>
                <P>
                    Section 11(a)(1) of the Act 
                    <SU>237</SU>
                    <FTREF/>
                     prohibits a member of a national securities exchange from effecting transactions on that exchange for its own account, the account of an associated person, or an account over which it or its associated person exercises investment discretion (collectively, “covered accounts”), unless an exception applies. Rule 11a2-2(T) under the Act,
                    <SU>238</SU>
                    <FTREF/>
                     known as the “effect versus execute” rule, provides exchange members with an exemption from the Section 11(a)(1) prohibition. Rule 11a2-2(T) permits an exchange member, subject to certain conditions, to effect transactions for covered accounts by arranging for an unaffiliated member to execute transactions on the exchange. To comply with Rule 11a2-2(T)'s conditions, a member: (i) must transmit the order from off the exchange floor; (ii) may not participate in the execution of the transaction once it has been transmitted to the member performing the execution; 
                    <SU>239</SU>
                    <FTREF/>
                     (iii) may not be affiliated with the executing member; and (iv) with respect to an account over which the member or an associated person has investment discretion, neither the member nor its associated person may retain any compensation in connection with effecting the transaction except as provided in the rule.
                </P>
                <FTNT>
                    <P>
                        <SU>237</SU>
                         15 U.S.C. 78k(a)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>238</SU>
                         17 CFR 240.11a2-2(T).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>239</SU>
                         This prohibition also applies to associated persons. 
                        <E T="03">See</E>
                         15 U.S.C. 78f(b)(8). The member may, however, participate in clearing and settling the transaction. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 14563 (Mar. 14, 1978), 43 FR 11542 (Mar. 17, 1978) (regarding the NYSE's Designated Order Turnaround System) (“1978 Release”)).
                    </P>
                </FTNT>
                <P>
                    In a letter to the Commission, GIX requested that the Commission concur with GIX's conclusion that GIX Members that enter orders into the GIX trading system satisfy the conditions of Rule 11a2-2(T).
                    <SU>240</SU>
                    <FTREF/>
                     For the reasons set forth below, GIX Members entering orders into the GIX trading system could satisfy the conditions of Rule 11a2-2(T).
                </P>
                <FTNT>
                    <P>
                        <SU>240</SU>
                         
                        <E T="03">See</E>
                         letter from James G. Buckley, Chief Regulatory Officer, GIX, dated Apr. 2, 2025 (“GIX 11(a) Letter”).
                    </P>
                </FTNT>
                <P>
                    First, Rule 11a2-2(T) requires that orders for covered accounts be transmitted from off the exchange floor. In the context of automated trading systems, the Commission has found that the off-floor transmission condition is met if a covered account order is transmitted from a remote location directly to an exchange's floor by electronic means.
                    <SU>241</SU>
                    <FTREF/>
                     GIX has represented that GIX does not have a physical trading floor, and the GIX trading system will receive orders from Members electronically through remote terminals or computer-to-computer interfaces.
                    <SU>242</SU>
                    <FTREF/>
                     The GIX trading system satisfies this off-floor transmission condition.
                </P>
                <FTNT>
                    <P>
                        <SU>241</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Nasdaq Order, 
                        <E T="03">supra</E>
                         note 50; Securities Exchange Act Release Nos. 61419 (Jan. 26, 2010), 75 FR 5157 (Feb. 1, 2010) (SR-BATS-2009-031) (approving BATS options trading); 59154 (Dec. 23, 2008), 73 FR 80468 (Dec. 31, 2008) (SR-BSE-2008-48) (approving equity securities listing and trading on BSE); 57478 (Mar. 12, 2008), 73 FR 14521 (Mar. 18, 2008) (SR-NASDAQ-2007-004 and SR-NASDAQ-2007-080) (approving Nasdaq Options Market options trading); 29237 (May 24, 1991), 56 FR 24853 (May 31, 1991) (SR-NYSE-90-52 and SR-NYSE-90-53) (approving NYSE's Off-Hours Trading Facility); and 15533 (Jan. 29, 1979), 44 FR 6084 (Jan. 31, 1979) (“1979 Release”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>242</SU>
                         
                        <E T="03">See</E>
                         GIX 11(a) Letter, 
                        <E T="03">supra</E>
                         note 236, at 2.
                    </P>
                </FTNT>
                <P>
                    Second, Rule 11a2-2(T) requires that the member and any associated person not participate in the execution of its order after the order has been transmitted. GIX represented that at no time following the submission of an order is a Member or an associated person of the Member able to acquire control or influence over the result or timing of the order's execution.
                    <SU>243</SU>
                    <FTREF/>
                     According to GIX, the execution of a Member's order is determined solely by what quotes and orders are present in the system at the time the Member submits the order, and the order priority based on the GIX rules.
                    <SU>244</SU>
                    <FTREF/>
                     Accordingly, a GIX Member and its associated persons do not participate in the execution of an order submitted to the GIX trading system.
                    <SU>245</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>243</SU>
                         
                        <E T="03">See id.</E>
                         at 3. GIX states that a Member may cancel or modify the order, or modify the instructions for executing the order, after the order has been transmitted, provided that such cancellations or modifications are transmitted from off an exchange floor. 
                        <E T="03">See id.</E>
                         The Commission has stated that the non-participation condition is satisfied under such circumstances so long as such modifications or cancellations are also transmitted from off the floor. 
                        <E T="03">See</E>
                         1978 Release, 
                        <E T="03">supra</E>
                         note 235 (stating that the “non-participation requirement does not prevent initiating members from canceling or modifying orders (or the instructions pursuant to which the initiating member wishes orders to be executed) after the orders have been transmitted to the executing member, provided that any such instructions are also transmitted from off the floor”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>244</SU>
                         
                        <E T="03">See</E>
                         GIX 11(a) Letter, 
                        <E T="03">supra</E>
                         note 236, at 3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>245</SU>
                         
                        <E T="03">See, e.g.,</E>
                         BATS Order, 
                        <E T="03">supra</E>
                         note 50, at 49505; and DirectEdge Exchanges Order, 
                        <E T="03">supra</E>
                         note 77, at 13164.
                    </P>
                </FTNT>
                <P>
                    Third, Rule 11a2-2(T) requires that the order be executed by an exchange member who is unaffiliated with the member initiating the order. The Commission has stated that this condition is satisfied when automated exchange facilities, such as the GIX trading system, are used, as long as the design of these systems ensures that members do not possess any special or unique trading advantages in handling their orders after transmitting them to the exchange.
                    <SU>246</SU>
                    <FTREF/>
                     GIX has represented that the design of the GIX trading system ensures that no Member has any special or unique trading advantage in the handling of its orders after transmitting its orders to GIX.
                    <SU>247</SU>
                    <FTREF/>
                     Based on GIX's representation, the GIX trading system satisfies this condition.
                </P>
                <FTNT>
                    <P>
                        <SU>246</SU>
                         
                        <E T="03">See, e.g.,</E>
                         BATS Order at 49505, 
                        <E T="03">supra</E>
                         note 50, at 49505; and DirectEdge Exchanges Order, 
                        <E T="03">supra</E>
                         note 77, at 13164. In considering the operation of automated execution systems operated by an exchange, the Commission stated that, while there is not an independent executing exchange member, the execution of an order is automatic once it has been transmitted into the system. Because the design of these systems ensures that members do not possess any special or unique trading advantages in handling their orders after transmitting them to the exchange, the Commission has stated that executions obtained through these systems satisfy the independent execution condition of Rule 11a2-2(T). 
                        <E T="03">See</E>
                         1979 Release, 
                        <E T="03">supra</E>
                         note 237.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>247</SU>
                         
                        <E T="03">See</E>
                         GIX 11(a) Letter, 
                        <E T="03">supra</E>
                         note 236, at 3.
                    </P>
                </FTNT>
                <P>
                    Fourth, in the case of a transaction effected for an account with respect to which the initiating member or an associated person thereof exercises investment discretion, neither the initiating member nor any associated person thereof may retain any compensation in connection with effecting the transaction, unless the person authorized to transact business for the account has expressly provided otherwise by written contract referring to Section 11(a) of the Act and Rule 11a2-2(T) thereunder.
                    <SU>248</SU>
                    <FTREF/>
                     GIX Members 
                    <PRTPAGE P="16221"/>
                    trading for covered accounts over which they exercise investment discretion must comply with this condition in order to rely on the rule's exemption.
                    <SU>249</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>248</SU>
                         
                        <E T="03">See, e.g.,</E>
                         BATS Order, 
                        <E T="03">supra</E>
                         note 50, at 49505; and DirectEdge Exchanges Order, 
                        <E T="03">supra</E>
                         note 77, at 13164. In addition, Rule 11a2-2(T)(d) requires a member or associated person authorized by written contract to retain compensation, in connection with effecting transactions for covered accounts over 
                        <PRTPAGE/>
                        which such member or associated persons thereof exercises investment discretion, to furnish at least annually to the person authorized to transact business for the account a statement setting forth the total amount of compensation retained by the member or any associated person thereof in connection with effecting transactions for the account during the period covered by the statement. 
                        <E T="03">See</E>
                         17 CFR 240.11a2-2(T)(d). 
                        <E T="03">See also</E>
                         1978 Release, 
                        <E T="03">supra</E>
                         note 235 (stating “[t]he contractual and disclosure requirements are designed to assure that accounts electing to permit transaction-related compensation do so only after deciding that such arrangements are suitable to their interests”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>249</SU>
                         GIX represented that it will advise its membership through the issuance of an Information Circular that those members trading for covered accounts over which they exercise investment discretion must comply with this condition in order to rely on the rule's exemption. 
                        <E T="03">See</E>
                         GIX 11(a) Letter, 
                        <E T="03">supra</E>
                         note 236, at 3-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Exemption from Section 19(b) of the Act With Regard to FINRA Rules Incorporated by Reference</HD>
                <P>
                    GIX proposes to incorporate by reference certain FINRA rules as GIX rules.
                    <SU>250</SU>
                    <FTREF/>
                     Thus, for those GIX rules, Exchange Members will comply with the GIX rule by complying with the FINRA rule referenced therein. In connection with its proposal to incorporate FINRA rules by reference, GIX requested, pursuant to Rule 0-12,
                    <SU>251</SU>
                    <FTREF/>
                     an exemption under Section 36 of the Act from the rule filing requirements of Section 19(b) of the Act for changes to those GIX rules that are effected solely by virtue of a change to a cross-referenced FINRA rule.
                    <SU>252</SU>
                    <FTREF/>
                     GIX represents in its letter that, as a condition to the exemption, it will provide written notice to its Members whenever a proposed rule change to a FINRA rule that is incorporated by reference is proposed and whenever any such proposed change is approved by the Commission or otherwise becomes effective.
                    <SU>253</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>250</SU>
                         
                        <E T="03">See</E>
                         letter from James G. Buckley, Chief Regulatory Officer, GIX, dated March 14, 2025 (“Exemption Request Letter”). GIX proposes to incorporate by reference the following FINRA rules: (1) FINRA Rule 1240 (Continuing Education Requirements), via GIX Rule 2.154 (Continuing Education) (references to FINRA Rules 1210 (Registration Requirements) and 1220 (Registration Categories) within GIX Rule 2.154 shall refer to applicable provisions in GIX Rule 2.160 (Registration Requirements and Restrictions on Membership)); (2) FINRA Rule 2090 (Know Your Customer), via GIX Rule 3.150; (3) FINRA Rules 2111 (Suitability) and 4512 (Customer Account Information), via GIX Rule 3.170 (Suitability); (4) FINRA Rule 2210 (Communications with the Public), via GIX Rule 3.280 (Communications with Customers and the Public); (5) FINRA Rule 2241 (Research Analysts and Research Reports), via GIX Rule 3.230 (Payments Involving Publications that Influence the Market Price of Security); (6) FINRA Rule 2268 (Requirements when Using Predispute Arbitration Agreements for Customer Accounts), via GIX Rule 12.110(c) (Pre-dispute Arbitration Agreements); (7) FINRA Rule 3130 (Annual Certification of Compliance and Supervisory Processes), via GIX Rule 5.130 (Annual Certification of Compliance and Supervisory Processes); (8) FINRA Rule 3210 (Accounts at Other Broker Dealers and Financial Institutions), via GIX Rule 5.170 (Transactions for or by Associated Persons); (9) FINRA Rule 3230 (Telemarketing), via GIX Rule 3.292 (Telemarketing); (10) FINRA Rule 4110 (Capital Compliance), via GIX Rule 4.110 (Capital Compliance); (11) FINRA Rule 4120 (Regulatory Notification and Business Curtailment), via GIX Rule 4.120 (Regulatory Notification and Business Curtailment); (12) FINRA Rule 4140 (Audit), via GIX Rule 4.140 (Audit); (13) FINRA Rule 4360 (Fidelity Bonds), via GIX Rule 2.240 (Fidelity Bonds); (14) FINRA Rule 4511 (General Requirements), via GIX Rule 4.511; (15) FINRA Rule 4512 (Customer Account Information), via GIX Rule 4.512; (16) FINRA Rule 4512(c) (defining “Allocation Report”), via GIX Rule 11.601 (Consolidated Audit Trail—Definitions); (17) FINRA Rule 4513 (Record of Written Customer Complaints), via GIX Rule 4.513 (Record of Customer Complaints); (18) FINRA Rule 4560 (Short Interest Reporting), via GIX Rule 3.293 (Short Interest Reporting); (19) FINRA Rule 5270 (Front Running of Block Transactions), via GIX Rule 10.260 (Front Running of Block Transactions); (20) FINRA Rule 5310 (Best Execution and Interpositioning), via GIX Rule 10.220 (Best Execution and Interpositioning); (21) FINRA Rule 5320.03 (Riskless Principal Exception), via GIX Rule 1.160(at) (definition of “Retail Order”); (22) FINRA Rule 12000 Series (Code of Arbitration Procedure for Customer Disputes), via GIX Rule 12.110 (Arbitration); and (23) FINRA Rule 13000 Series (Code of Arbitration Procedure for Industry Disputes), via GIX Rule 12.110 (Arbitration).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>251</SU>
                         
                        <E T="03">See</E>
                         17 CFR 240.0-12.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>252</SU>
                         
                        <E T="03">See</E>
                         Exemption Request Letter, 
                        <E T="03">supra</E>
                         note 246.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>253</SU>
                         
                        <E T="03">See</E>
                         Exemption Request Letter, 
                        <E T="03">supra</E>
                         note 246, at 3. GIX will provide such notice through a posting on the same website location where GIX will post its own rule filings pursuant to Rule 19b-4 under the Act, within the required time frame. The website posting will include a link to the location on the FINRA website where FINRA's proposed rule change is posted. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    Using its authority under Section 36 of the Act,
                    <SU>254</SU>
                    <FTREF/>
                     the Commission is hereby granting GIX's request for an exemption, pursuant to Section 36 of the Act, from the rule filing requirements of Section 19(b) of the Act with respect to the rules that GIX proposes to incorporate by reference.
                    <SU>255</SU>
                    <FTREF/>
                     This exemption is conditioned upon GIX providing written notice to its Members whenever FINRA proposes to change a rule that GIX has incorporated by reference. This exemption is appropriate in the public interest and consistent with the protection of investors because it will promote more efficient use of Commission and SRO resources by avoiding duplicative rule filings based on simultaneous changes to identical rules of more than one SRO.
                </P>
                <FTNT>
                    <P>
                        <SU>254</SU>
                         15 U.S.C. 78mm.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>255</SU>
                         The Commission previously exempted other exchanges from the requirement to file proposed rule changes under Section 19(b) of the Act. 
                        <E T="03">See, e.g.,</E>
                         24X Order, MEMX Order, MIAX Order, MIAX Pearl Order, and BATS Order, 
                        <E T="03">supra</E>
                         note 50; IEX Order, 
                        <E T="03">supra</E>
                         note 65; ISE Mercury Order, 
                        <E T="03">supra</E>
                         note 67; and DirectEdge Exchanges Order, 
                        <E T="03">supra</E>
                         note 77.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">V. Conclusion</HD>
                <P>
                    <E T="03">It is ordered</E>
                     that the application of GIX for registration as a national securities exchange be, and it hereby is, granted.
                </P>
                <P>
                    <E T="03">It is furthered ordered</E>
                     that operation of GIX is conditioned on the satisfaction of the requirements below:
                </P>
                <HD SOURCE="HD2">A. Participation in National Market System Plans</HD>
                <P>GIX must join the CT Plan, the Consolidated Tape Association Plan, the Consolidated Quotation Plan, and the Nasdaq UTP Plan (or any successors thereto); the National Market System Plan Establishing Procedures Under Rule 605 of Regulation NMS; the Regulation NMS Plan to Address Extraordinary Market Volatility; the Plan for the Selection and Reservation of Securities Symbols; and the National Market System Plan Governing the Consolidated Audit Trail.</P>
                <HD SOURCE="HD2">B. Intermarket Surveillance Group</HD>
                <P>GIX must join the Intermarket Surveillance Group.</P>
                <HD SOURCE="HD2">C. Minor Rule Violation Plan</HD>
                <P>
                    A MRVP filed by GIX under Rule 19d-1(c)(2) must be declared effective by the Commission.
                    <SU>256</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>256</SU>
                         17 CFR 240.19d-1(c)(2).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">D. Rule 17d-2 Agreement.</HD>
                <P>
                    An agreement pursuant to Rule 17d-2 
                    <SU>257</SU>
                    <FTREF/>
                     that allocates regulatory responsibility for those matters specified above 
                    <SU>258</SU>
                    <FTREF/>
                     must be declared effective by the Commission, or GIX must demonstrate that it independently has the ability to fulfill all of its regulatory obligations.
                </P>
                <FTNT>
                    <P>
                        <SU>257</SU>
                         17 CFR 240.17d-2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>258</SU>
                         
                        <E T="03">See supra</E>
                         notes 135-141 and accompanying text.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">E. Participation in Multi-Party Rule 17d-2 Plans</HD>
                <P>GIX must become a party to the multi-party Rule 17d-2 agreement concerning the surveillance, investigation, and enforcement of common insider trading rules and the agreement concerning certain Regulation NMS and Consolidated Audit Trail rules.</P>
                <HD SOURCE="HD2">F. RSA</HD>
                <P>
                    GIX must finalize the provisions of the RSA with its regulatory services provider, as described above, that will specify the GIX and Commission rules for which the regulatory services provider will provide certain regulatory functions, or GIX must demonstrate that 
                    <PRTPAGE P="16222"/>
                    it independently has the ability to fulfill all of its regulatory obligations.
                </P>
                <P>
                    <E T="03">It is further ordered,</E>
                     pursuant to Section 36 of the Act,
                    <SU>259</SU>
                    <FTREF/>
                     that GIX shall be exempted from the rule filing requirements of Section 19(b) of the Act with respect to the FINRA rules that GIX proposes to incorporate by reference into GIX's rules, subject to the conditions specified in this Order.
                </P>
                <FTNT>
                    <P>
                        <SU>259</SU>
                         15 U.S.C. 78mm.
                    </P>
                </FTNT>
                <SIG>
                    <P>By the Commission.</P>
                    <NAME>Vanessa A. Countryman,</NAME>
                    <TITLE>Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06563 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102843; File No. SR-CboeBZX-2025-049]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing of a Proposed Rule Change To Amend Various Provisions of Exchange Rule 14.11</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that, on March 31, 2025, Cboe BZX Exchange, Inc. (“Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III 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.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe BZX Exchange, Inc. (“BZX” or the “Exchange”) is filing with the Securities and Exchange Commission (“Commission” or “SEC”) a proposed rule change to various provisions of Exchange Rule 14.11 that would (1) amend the requirement for a registered Market Maker in a UTP Derivative Security or a Derivative Security listed on the Exchange to file with the Exchange a current list identifying Related Instrument Trading Accounts; and (2) eliminate the prohibition that a Member acting as a registered Market Maker in a UTP Derivative Security or a Derivative Security listed on the Exchange may not trade in a Related Instrument Trading Account that has not been reported to the Exchange.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend certain provisions under Exchange Rule 14.11 to require Members 
                    <SU>3</SU>
                    <FTREF/>
                     that are registered as a Market Maker 
                    <SU>4</SU>
                    <FTREF/>
                     in an Unlisted Trading Privilege (“UTP”) Derivative Security 
                    <SU>5</SU>
                    <FTREF/>
                     or a Derivative Security 
                    <SU>6</SU>
                    <FTREF/>
                     listed on the Exchange (“BZX-Listed Derivative Security”) to provide a list identifying Related Instrument 
                    <SU>7</SU>
                    <FTREF/>
                     Trading Accounts 
                    <SU>8</SU>
                    <FTREF/>
                     only at the request of the Exchange.
                    <SU>9</SU>
                    <FTREF/>
                     The Exchange also proposes to amend provisions under Rule 14.11 to eliminate the prohibition that a Member acting as a registered Market Maker in a UTP Derivative Security or BZX-Listed Derivative Security may not have a Related Instruments Trading Account which has not been reported to the Exchange. The proposal would not limit the Exchange's authority to request, nor limit the registered Market Maker's obligation to produce, any books, records, or other information pertaining to any Related Instrument Trading Account or to the account of any registered or non-registered employee affiliated with the Market Maker for which Related Instruments are traded.
                    <SU>10</SU>
                    <FTREF/>
                     Such provisions apply to any Derivative Security listed pursuant to Rules 14.11(d) Interpretation and Policy .01(a) Securities Linked to the Performance of Indexes and Commodities (Including Currencies), 14.11(e)(4)(G) Commodity-Based Trust Shares, 14.11(e)(5)(G) Currency Trust Shares, 14.11(e)(6)(G) Commodity Index Trust Shares, 14.11(e)(7)(F)(i) Commodity Futures Trust Shares, 14.11(e)(8)(E)(i) Partnership Units, 14.11(e)(9))(F) Trust Units, 14.11(e)(10)(F)(i) Managed Trust Securities, and Rule 14.11(f)(4)(D)(i) Trust Issued Receipts (collectively with Rule 14.11(j) UTP Derivative Securities, the “Market Maker Restriction Rules”). Derivative Securities that are listed and traded on the Exchange pursuant to the Applicable Rules require the Exchange to file separate proposals under Section 19(b) of the Act before listing the Derivative Securities and each of those filings contain references to the current rules.
                    <SU>11</SU>
                    <FTREF/>
                     The Exchange notes that this 
                    <PRTPAGE P="16223"/>
                    proposed amendment to its rules would also apply to all BZX-Listed Derivative Securities already listed and traded on the Exchange pursuant to the Applicable Rules pursuant to the proposals filed under Section 19(b) of the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 1.5(n).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 1.5(l).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 1.5(ee).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 1.5(dd).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         “Reference Assets” refers to the currencies, commodities, or derivatives based on one or more currencies or commodities, or derivatives based on a basket or index comprised of currencies or commodities, for which a UTP Derivative Security or BZX-Listed Derivative Security derives its value. 
                        <E T="03">See e.g.,</E>
                         Exchange Rule 14.11(j)(4). “Related Instruments” refers to the Reference Assets collectively with the underlying physical asset or commodity, related futures or options on futures, and any other related derivatives of the UTP Derivative Security or BZX-Listed Derivative Security. 
                        <E T="03">See e.g.,</E>
                         Exchange Rule 14.11(j)(4)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         “Related Instrument Trading Accounts” refers to accounts for which Related Instruments are trading in which (i) the Market Maker Holds an interest; (ii) over which it has investment discretion; or (iii) in which it shares in the profits and/or losses. 
                        <E T="03">See</E>
                         Exchange Rule 14.11(j)(4)(B)(i)-(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The Exchange notes that Exchange Rule 22.7 has similar requirements to those at issue in Rule 14.11; however, the Exchange is proposing to amend Rule 22.7 through a separate Rule amendment.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 14.11(j)(4)(B).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The Exchange notes that the following BZX-Listed Derivatives Securities have been approved by the Commission and are currently listed and traded on the Exchange: 
                        <E T="03">see</E>
                         Securities Exchange Act Release Nos. 100216 (May 22, 2024) 89 FR 46514 (May 29, 2024) (SR-CboeBZX-2023-070) (Notice of Filing of Amendment No. 2 to a Proposed Rule Change to List and Trade Shares of the ARK 21Shares Ethereum ETF Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares); 99288 (January 8, 2024) 89 FR 2387 (January 12, 2024) (SR-CboeBZX-2023-028) (Notice of Filing of Amendment No. 5 to a Proposed Rule Change To List and Trade Shares of the ARK 21Shares Bitcoin ETF Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares); 99290 (January 8, 2024) 89 FR 2338 (January 12, 2024) (SR-CboeBZX-2023-044) (Notice of Filing of Amendment No. 3 to a Proposed Rule Change To List and Trade Shares of the Wise Origin Bitcoin Fund Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares); 100215 (May 22, 2024) 89 FR 46478 (May 29, 2024) (SR-CboeBZX-2023-095) (Notice of Filing of Amendment No. 2 to a Proposed Rule Change to List and Trade Shares of the Fidelity Ethereum Fund Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares); 99286 (January 8, 2024) 89 FR 2372 (January 12, 2024) (SR-CboeBZX-2023-072) (Notice of Filing of Amendment No. 1 to a Proposed Rule Change To List and Trade Shares of the Franklin Bitcoin ETF Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares); 100218 (May 22, 2024) 89 FR 46499 
                        <PRTPAGE/>
                        (May 29, 2024) (SR-CboeBZX-2024-018) (Notice of Filing of Amendment No. 1 to a Proposed Rule Change Relating To List and Trade Shares of the Franklin Ethereum ETF, a Series of the Franklin Ethereum Trust, Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares); 101963 (December 18. 2024) 89 FR 105109 (December 26, 2024) (SR-CboeBZX-2024-091) (Notice of Filing of Amendment No. 1 to a Proposed Rule Change To List and Trade Shares of the Franklin Crypto Index ETF, a Series of the Franklin Crypto Trust, Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares); 94094 (January 28, 2022) 87 FR 6206 (February 3, 2022) (SR-CboeBZX-2022-005) (Notice of Filing and Immediate Effectiveness of Proposed Rule Change To List and Trade Shares of the Goldman Sachs Physical Gold ETF Under BZX Rule 14.11(e)(4) (Commodity-Based Trust Shares)); 99283 (January 8, 2024) 89 FR 2263 (January 12, 2024) (SR-CboeBZX-2023-038) (Notice of Filing of Amendment No. 2 to a Proposed Rule Change To List and Trade Shares of the Invesco Galaxy Bitcoin ETF Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares); 100219 (May 22, 2024) 89 FR 46543 (May 29, 2024) (SR-CboeBZX-2023-087) (Notice of Filing of Amendment No. 1 to a Proposed Rule Change To List and Trade Shares of the Invesco Galaxy Ethereum ETF Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares); 99289 (January 8, 2024) 89 FR 2413 (January 12, 2024) (SR-CboeBZX-2023-040) (Notice of Filing of Amendment No. 2 to a Proposed Rule Change To List and Trade Shares of the VanEck Bitcoin Trust Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares); 100214 (May 22, 2024) 89 FR 46462 (May 29, 2024) (SR-CboeBZX-2023-069) (Notice of Filing of Amendment No. 2 to a Proposed Rule Change to List and Trade Shares of the VanEck Ethereum Trust Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares); and 99292 (January 8, 2024) 89 FR 2429 (January 12, 2024) (SR-CboeBZX-2023-042) (Notice of Filing of Amendment No. to a Proposed Rule Change To List and Trade Shares of the WisdomTree Bitcoin Fund Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Background</HD>
                <P>
                    Prior to 2014, Exchange Rules prohibited a Market Maker in a UTP Derivative Security from acting or registering as a market maker on another exchange in any Related Instrument of a UTP Derivative Security. In 2014, the Exchange amended Rule 14.11(j) to permit a Member acting as a registered Market Maker in a UTP Derivatives Security on the Exchange the flexibility to act or register as a Market Maker in any Reference Asset that a UTP Derivative Security derives its value from consistent with the Commission and Exchange Rules.
                    <SU>12</SU>
                    <FTREF/>
                     To allow for this flexibility, among other requirements, Rule 14.11(j) requires a Member acting as a registered Market Maker in a UTP Derivative Security to file with the Exchange, in a manner prescribed by the Exchange, and to keep a current list identifying all accounts for trading the Related Instruments which the Member acting as a registered Market Maker may have or over which it may exercise investment discretion (
                    <E T="03">i.e.,</E>
                     Related Instrument Trading Accounts). Additionally, Rule 14.11(j)(4) prohibits a Member from acting as a registered Market Maker in the UTP Derivative Security from trading in Related Instruments in an account in which a Member acting as a registered Market Maker, directly or indirectly, controls trading activities, or has a direct interest in the profits or losses thereof (
                    <E T="03">i.e.,</E>
                     Related Instrument Trading Accounts), that has not been reported to the Exchange. Substantively identical Exchange Rules exist under the remaining Market Maker Restriction Rules.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act No. 73743 (December 4, 2014) (79 FR 73367) (December 10, 2014) (SR-BATS-2014-057) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 14.11(j)(5) of BATS Exchange, Inc., To Remove the Restriction Prohibiting Market Makers in UTP Derivative Securities From Acting or Registering as a Market Maker in Any Reference Asset of That UTP Derivative Security or Any Derivative Instrument Based on Such Reference Asset).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposal</HD>
                <P>
                    Now, the Exchange proposes to amend the Market Maker Restriction Rules to require a registered Market Maker to file with the Exchange a current list identifying all Related Instrument Trading Accounts only upon the request of the Exchange. For example, the Exchange proposes to amend Exchange Rule 14.11(j)(4)(A) to provide that a Member acting as a registered Market Maker in a UTP Derivative Security, must upon the request of and in a manner prescribed by the Exchange, file with the Exchange a current list identifying all accounts for trading the Related Instruments which the Member acting as a registered Market Maker may have or over which it may exercise investment discretion. The Exchange proposes to make substantively similar amendments to all other relevant subsections of the Market Maker Restriction Rules 
                    <SU>13</SU>
                    <FTREF/>
                     to require a registered Market Maker to file with the Exchange a current list identifying all Related Instrument Trading Accounts only upon the request of the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         The relevant subsections of the Market Maker Restriction Rules are as follows: Securities Linked to the Performance of Indexes and Commodities (Including Currencies) (Rule 14.11(d) Interpretation and Policy .01(a)), Commodity-Based Trust Shares (Rule 14.11(e)(4)(G)), Currency Trust Shares (Rule 14.11(e)(5)(G)), Commodity Index Trust Shares (Rule 14.11(e)(6)(G)), Commodity Futures Trust Shares (Rule 14.11(e)(7)(F)(i)), Partnership Units (Rule 14.11(e)(8)(E)(i)), Trust Units (Rule 14.11(e)(9))(F), Managed Trust Securities (Rule 14.11(e)(10)(F)(i)), and Trust Issued Receipts (Rule 14.11(f)(4)(D)(i)).
                    </P>
                </FTNT>
                <P>
                    The Exchange also proposes to delete provisions of the Market Maker Restriction Rules that provides that a Member acting as a registered Market Maker in a UTP Derivative Security or a BZX-Listed Derivative Security may not trade in a Related Instrument Trading Account that has not been reported to the Exchange. For example, the Exchange proposes to delete the sentence of Rule 14.11(j)(4)(B) which states that “[a] Market Maker may not have an interest in, exercise investment discretion over, or share in the profits and/or losses of a Related Instrument Trading Account which has not been reported to the Exchange as required by this Rule.” The Exchange proposes to remove similar prohibitions from all other Market Maker Restriction Rules 
                    <SU>14</SU>
                    <FTREF/>
                     to delete substantively similar sentences.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         Id.
                    </P>
                </FTNT>
                <P>
                    Last, the Exchange proposes to amend Rule 14.11(j)(4)(B) to provide that a Market Maker shall, upon the request of the Exchange and in a manner prescribed by the Exchange, file with the Exchange a list of Related Instrument Trading Accounts for which Related Instruments are traded.
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         The Exchange proposes no change to Rules 14.11(j)(4)(B)(i)-(iii), which sets forth the types of accounts in which Related Instruments are traded that would be considered Related Instrument Trading Accounts.
                    </P>
                </FTNT>
                <P>
                    Exchange Rules 
                    <SU>16</SU>
                    <FTREF/>
                     ensure that Market Makers in UTP Derivative Securities and BZX-Listed Derivatives would continue to have in place reasonably designed policies and procedures to prevent the misuse of material non-public information with regard to also acting as a Market Maker in any Related Instruments.
                    <SU>17</SU>
                    <FTREF/>
                     For example, Rule 14.11(j)(4)(B) will continue to prohibit Market Makers from using material non-public information in connection with trading a Related Instrument and will also continue to require that, in addition to the existing obligations under Exchange rules regarding the production of books and records, a Market Maker shall, upon request by the Exchange, make available to the Exchange any books, records or other information pertaining to any Related Instrument trading account or to the account of any registered or non-registered employee affiliated with the Market Maker for which Related Instruments are traded. 
                    <PRTPAGE P="16224"/>
                    Substantively identical Rules exist in all other Market Maker Restriction Rules.
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 5.5 and 14.1(j)(4)(B).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         15 U.S.C. 78o(g).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Securities Linked to the Performance of Indexes and Commodities (Including Currencies) (Rule 14.11(d) Interpretation and Policy .01)(b), Commodity-Based Trust Shares (Rule 14.11(e)(4)(G)), Currency Trust Shares (Rule 14.11(e)(5)(G)), Commodity Index Trust Shares (Rule 14.11(e)(6)(G)), Commodity Futures Trust Shares (Rule 14.11(e)(7)(F)(ii)), Partnership Units (Rule 14.11(e)(8)(E)(ii)), Trust Units (Rule 14.11(e)(9))(F), Managed Trust Securities (Rule 14.11(e)(10)(F)(ii)), and Trust Issued Receipts (Rule 14.11(f)(4)(D)(ii)).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>19</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>20</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <P>The Exchange believes that the proposed rule change is designed to prevent fraudulent and manipulative acts and practices, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, remove impediments to, and perfect the mechanism of a free and open market and a national market system and, in general, to protect investors and the public interest, because the proposed changes would reduce the paperwork received by the Exchange and ease the burden on registered Market Makers in submitting a list of Related Instrument Trading Accounts to the Exchange, without changing the information available to the Exchange. As discussed above, a registered Market Maker's list of Related Instrument Trading Accounts would continue to be available to the Exchange under Rule14.11, as amended, which requires Market Makers to make available to the Exchange any books, records, or other information pertaining to any Related Instrument Trading Account or to the account of any registered or non-registered employee affiliated with the Market Maker for which Related Instruments are traded. As such, the Exchange believes Rule 14.11, as amended, would continue to serve to prevent fraudulent and manipulative acts and practices, as well as to protect investors and the public interest from concerns that may be associated with integrated market making and any possible misuse of non-public information.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>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 believes that the proposed changes that would (1) amend the requirement for a registered Market Maker in a UTP Derivative Security or BZX-Listed Derivative Security to file with the Exchange a current list identifying Related Instrument Trading Accounts; and (2) eliminate the prohibition that a Member acting as a registered Market Maker in a UTP Derivative Security or BZX-Listed Derivative Security may not trade in a Related Instrument Trading Account that has not been reported to the Exchange, will have no impact on competition.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    Within 45 days of the date of publication of this notice in the 
                    <E T="04">Federal Register</E>
                     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 Exchange consents, the Commission will:
                </P>
                <P>A. by order approve or disapprove such proposed rule change, or</P>
                <P>B. institute proceedings to determine whether the proposed rule change should be disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeBZX-2025-049 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeBZX-2025-049. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-CboeBZX-2025-049 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>21</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>21</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06514 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="16225"/>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102824; File No. SR-NASDAQ-2025-033]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; The Nasdaq Stock Market LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules To Allow the Exchange To List Options on the iShares Ethereum Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that April 9, 2025, The Nasdaq Stock Market LLC (“Nasdaq” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend The Nasdaq Options Market LLC (“NOM”) Options 9, Section 13, Position Limits, and Section 15, Exercise Limits, for options on the iShares Ethereum Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://listingcenter.nasdaq.com/rulebook/nasdaq/rulefilings,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>The Exchange proposes to amend Options 9, Section 13, Position Limits, and Options 9, Section 15, Exercise Limits, for options on the iShares Ethereum Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust, (collectively “Ether Trusts”).</P>
                <P>
                    Recently, Nasdaq ISE, LLC (“ISE”) received approval to list options on iShares Ethereum Trust, Cboe Exchange, Inc. (“Cboe”) received approval to list options on the Fidelity Ethereum Fund, and NYSE American LLC (“NYSE American”) received approval to list options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust (collectively, “Ether Trusts”).
                    <SU>5</SU>
                    <FTREF/>
                     ISE filed a rule change to list and trade options on the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 102798 (April 9, 2025) (SR-ISE-2024-35) (not yet noticed); 102797 (April 9, 2025) (SR-Cboe-2024-036) (not yet published); 102799 (April 9, 2025), (not yet published) (SR-NYSEAMER-2024-45).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         SR-ISE-2024-11 [sic] (not yet noticed).
                    </P>
                </FTNT>
                <P>NOM's Options 4 Rules were amended by the ISE rule changes to list options on the Ether Trusts, as those Rules are incorporated by reference to ISE's Options 4 Rules, so NOM has the ability to list the options on the Ether Trusts. The Ether Approval Orders stated that the position and exercise limits for each of the Ether Trusts shall be 25,000 contracts. At this time, the Exchange proposes to amend NOM Options 9, Section 13, Position Limits, and Options 9, Section 15, Exercise Limits, to note that options on each Ether Trust shall have position and exercise limits of 25,000 contracts to mirror the Ether Approval Orders.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
                    <SU>7</SU>
                    <FTREF/>
                     in general, and furthers the objectives of Section 6(b)(5) of the Act,
                    <SU>8</SU>
                    <FTREF/>
                     in particular, in that it is designed to promote just and equitable principles of trade, 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.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         15 U.S.C. 78f(b)
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <P>
                    The Exchange's proposal to amend Options 9, Section 13, Position Limits, and Options 9, Section 15, Exercise Limits, to provide that the position and exercise limits for options on each of the Ether Trusts shall be 25,000 contracts is consistent with the Act as it will conform NOM's options position and exercise limits for each of the Ether Trusts with ISE's options position and exercise limits on these same Ether Trusts to align those limits.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The Exchange believes that other exchanges will adopt position and exercise limits of 25,000 contracts for options on each of the Ether Trusts. All Nasdaq affiliated markets have filed to adopt a 25,000 contract position and exercise limit for the Ether Trusts.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>The proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.</P>
                <P>
                    Amending Options 9, Sections 13 and 15 to provide that the position and exercise limits for options on each of the Ether Trusts shall be 25,000 contracts does not impose an undue burden on competition as the position and exercise limits will apply to all trading for options on the Ether Trusts trading on the Exchange as well as those trading on other exchanges that file a similar proposal.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         All Nasdaq affiliated markets are filing to adopt a 25,000 contract position and exercise limit for options on the Ether Trusts.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were either solicited or received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 
                    <SU>11</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>12</SU>
                    <FTREF/>
                     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 
                    <PRTPAGE P="16226"/>
                    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 
                    <SU>13</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) 
                    <SU>14</SU>
                    <FTREF/>
                     thereunder.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>15</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>16</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing of options on iShares Ethereum Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.
                    <SU>17</SU>
                    <FTREF/>
                     As noted above, NOM's Options 4 Rules were amended by an ISE rule change 
                    <SU>18</SU>
                    <FTREF/>
                     as those Rules are incorporated by reference to ISE's Options 4 Rules, so NOM has the ability to list the options on the Ether Trusts. This proposal establishes position and exercise limits for options on the Ether Trusts. The Commission believes that waiver of the operative delay could benefit investors by assuring that trading in Ether Trust options are subject to the same position and exercise limits in place on other exchanges. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102797 (April 9, 2025), (SR-Cboe-2024-036) (Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on Shares of the Fidelity Ethereum Fund) 
                        <E T="03">See also</E>
                         Securities Exchange Act Release No. 102798 (April 9, 2025), (SR-ISE-2024-35) (Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on the iShares Ethereum Trust). 
                        <E T="03">See also</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025), (SR-NYSEAMER-2024-45) (Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to Amend Exchange Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         SR-ISE-2025-11.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov</E>
                    . Please include file number SR-NASDAQ-2025-033 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-NASDAQ-2025-033. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). Copies of the submission, all subsequent amendments, all written statements with respect to the proposed rule change that are filed with the Commission, and all written communications relating to the proposed rule change between the Commission and any person, other than those that may be withheld from the public in accordance with the provisions of 5 U.S.C. 552, will be available for website viewing and printing in the Commission's Public Reference Room, 100 F Street NE, Washington, DC 20549, on official business days between the hours of 10 a.m. and 3 p.m. Copies of the filing also will be available for inspection and copying at the principal office of the Exchange. Do not include personal identifiable information in submissions; you should submit only information that you wish to make available publicly. We may redact in part or withhold entirely from publication submitted material that is obscene or subject to copyright protection. All submissions should refer to file number SR-NASDAQ-2025-033 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>20</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>20</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06502 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102844; File No. SR-PHLX-2025-19]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rule Equity 7, Section 3, To Eliminate the Market Data Revenue Rebate Program</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (the “Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 10, 2025, Nasdaq PHLX LLC (“Phlx” or “Exchange”) filed with the Securities and Exchange Commission (“SEC” or “Commission”) the proposed rule change as described in Items I, II, and III 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.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The Exchange proposes to a proposal to amend Rule Equity 7, Section 3, to eliminate the Market Data Revenue (“MDR”) Rebate program, as described further below.
                    <PRTPAGE P="16227"/>
                </P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://listingcenter.nasdaq.com/rulebook/phlx/rulefilings,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The purpose of the proposed rule change is to amend Rule Equity 7, Section 3, to eliminate the Market Data Revenue (“MDR”) Rebate program for PSX. The MDR Rebate program was designed to improve displayed liquidity and promote order flow to the Exchange by offering an incentive for market participants to quote on the Exchange.
                    <SU>3</SU>
                    <FTREF/>
                     The MDR Rebate program calls for 40% of MDR that exceeds fixed thresholds in any one of two pools (“Excess MDR”) to be shared with PSX participants in proportion to their respective eligible quoting activity in Tape A and C securities, as described further below.
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         See Securities Exchange Act Release No. 34-100060 (May 3, 2024), 89 FR 39668 (May 9, 2024) (SR-Phlx-2024-18).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Elimination of Market Data Revenue Rebate Program</HD>
                <P>Currently, the MDR Rebate program Section (a) provides that, assuming that the requirements of this PSX MDR Rebate Section are met, a PSX Participant may receive a quarterly MDR rebate in proportion to the PSX Participant's quoting of displayed orders in Tape A and C securities from the previous calendar quarter (“MDR Rebate”), as described further in Section (e).</P>
                <P>Section (b) provides that, to qualify for the MDR Rebate, a PSX Participant must quote at the National Best Bid or Offer (“NBBO”) at least 25% of the time during Market Hours in an average of at least 250 securities for Tape A securities or at least 300 securities for Tape C securities through the PSX Participant's MPID per day over the course of the quarter. A PSX Participant is considered to be quoting at the NBBO if the PSX Participant's MPID quotes a displayed order of at least 100 shares in the security and prices the order at either the national best bid or the national best offer or both the national best bid and offer for the security.</P>
                <P>Section (c) provides that MDR will be calculated separately for quotes in each Tape A and C security, for a total of two MDR pools. If the MDR received by the Exchange in any given pool exceeds the following thresholds in any given calendar quarter, 40% of such excess MDR will be payable to PSX Participants in proportion to their respective quoting of displayed orders in that pool:</P>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="12C,12C">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Tape A</CHED>
                        <CHED H="1">Tape C</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">
                            <E T="03">$110,000</E>
                        </ENT>
                        <ENT>
                            <E T="03">$200,000</E>
                        </ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    Section (d) provides a 
                    <E T="03">de minimis</E>
                     requirement that states that a PSX Participant will not receive an MDR Rebate in any calendar quarter in which the total MDR Rebate attributed to the PSX Participant is less than $500.
                </P>
                <P>Section (e) describes the steps for calculating MDR Rebates:</P>
                <P>
                    <E T="03">Step 1.</E>
                     Calculate, on a daily basis (per MPID), the product of three factors: number of shares in the quotation, the duration of the quotation at the NBBO (for both the bid and the offer), and the price of the security.
                </P>
                <P>
                    <E T="03">Step 2.</E>
                     For each security, sum the daily values from Step 1 across the quarter, the sum of which represents the PSX Participant's quote credits (per MPID) in each security.
                </P>
                <P>
                    <E T="03">Step 3.</E>
                     For each security, sum all PSX Participants' quote credits to obtain the total quote credits available per security.
                </P>
                <P>
                    <E T="03">Step 4.</E>
                     Divide each PSX Participant's quote credits (per MPID) (from Step 2) into the total quote credits available per security (from Step 3) to obtain a Participant's percentage of the security they are quoting (per MPID).
                </P>
                <P>
                    <E T="03">Step 5.</E>
                     Calculate the income allocation weight for each security based on the share of revenue allocated to the symbol by the SIP that quarter.
                </P>
                <P>
                    <E T="03">Step 6.</E>
                     For each security, multiply a PSX Participant's percentage of security they are quoting (per MPID) (from Step 4) by the income allocation weight of the security (from Step 5).
                </P>
                <P>
                    <E T="03">Step 7.</E>
                     For each PSX Participant's MPID, sum the values calculated in Step 6 across all securities in the pool (
                    <E T="03">i.e.,</E>
                     in the same Tape) to obtain the PSX Participant's allocation percentage for the excess MDR in the pool.
                </P>
                <P>
                    <E T="03">Step 8.</E>
                     For each PSX Participant with eligible quote activity in the pool, multiply the PSX Participant's allocation percentage (from Step 7) by the excess MDR in the pool to determine the dollar amount of the PSX Participant's MDR Rebate in the pool.
                </P>
                <P>
                    As for calculating the pool of funds from which MDR Rebates will be paid, unlike the SIPs, the Exchange will derive MDR Rebate allocation from a fixed value that will not be subject to adjustment (
                    <E T="03">i.e.,</E>
                     the amount of MDR actually received by the Exchange on a quarterly basis). This avoids the problem of having to adjust MDR rebates that have already been paid to PSX Participants to comport to adjustments to MDR made by the SIPs.
                    <SU>4</SU>
                    <FTREF/>
                     As illustrated in the example provided in Section (e), the Exchange sets forth in the proposed rule text the methodology for calculating and distributing Excess MDR.
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         For example, if MDR paid to the Exchange was less than anticipated in Q3 2024 due to an adjustment to the MDR paid to the Exchange in Q2 2024 (
                        <E T="03">i.e.,</E>
                         actual MDR in Q2 fell short of estimates), the Exchange will not recoup the difference from the PSX Participants that had been paid the Q2 MDR Rebate. Instead, the MDR Rebate for Q3 will be calculated based on the actual MDR paid to the Exchange in Q3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Example on MDR Rebate program available at Nasdaq PHLX LLC Rulebook, Equity 7, Section 3, 
                        <E T="03">https://listingcenter.nasdaq.com/rulebook/phlx/rules/Phlx%20Equity%207.</E>
                    </P>
                </FTNT>
                <P>The Exchange is proposing to remove this program because it is not heavily utilized and has not achieved success in attracting the quoting activity that it was intended to target. As such, this rebate program no longer provides a growth incentive that is aligned with the Exchange's needs.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
                    <SU>6</SU>
                    <FTREF/>
                     in general, and furthers the objectives of Sections 6(b)(4) and 6(b)(5) of the Act,
                    <SU>7</SU>
                    <FTREF/>
                     in particular, in that it provides for the equitable allocation of reasonable dues, fees and other charges among members and issuers and other persons using any facility, and is not designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         15 U.S.C. 78f(b)(4) and (5).
                    </P>
                </FTNT>
                <P>
                    The Exchange's proposed changes to its schedule of credits are reasonable in several respects. As a threshold matter, the Exchange is subject to significant competitive forces in the market for equity securities transaction services that constrain its pricing determinations 
                    <PRTPAGE P="16228"/>
                    in that market. The fact that this market is competitive has long been recognized by the courts. In 
                    <E T="03">NetCoalition</E>
                     v. 
                    <E T="03">Securities and Exchange Commission,</E>
                     the D.C. Circuit stated as follows: “[n]o one disputes that competition for order flow is ‘fierce.’ . . . As the SEC explained, “[i]n the U.S. national market system, buyers and sellers of securities, and the broker-dealers that act as their order-routing agents, have a wide range of choices of where to route orders for execution”; [and] ‘no exchange can afford to take its market share percentages for granted’ because ‘no exchange possesses a monopoly, regulatory or otherwise, in the execution of order flow from broker dealers’. . . .” 
                    <SU>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">NetCoalition</E>
                         v. 
                        <E T="03">SEC,</E>
                         615 F.3d 525, 539 (D.C. Cir. 2010) (quoting Securities Exchange Act Release No. 59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-21)).
                    </P>
                </FTNT>
                <P>
                    The Commission and the courts have repeatedly expressed their preference for competition over regulatory intervention in determining prices, products, and services in the securities markets. In Regulation NMS, while adopting a series of steps to improve the current market model, the Commission highlighted the importance of market forces in determining prices and SRO revenues and, also, recognized that current regulation of the market system “has been remarkably successful in promoting market competition in its broader forms that are most important to investors and listed companies.” 
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005) (“Regulation NMS Adopting Release”).
                    </P>
                </FTNT>
                <P>Numerous indicia demonstrate the competitive nature of this market. For example, clear substitutes to the Exchange exist in the market for equity security transaction services. The Exchange is only one of several equity venues to which market participants may direct their order flow. Competing equity exchanges offer similar tiered pricing structures to that of the Exchange, including schedules of rebates and fees that apply based upon members achieving certain volume thresholds.</P>
                <P>Within this environment, market participants can freely and often do shift their order flow among the Exchange and competing venues in response to changes in their respective pricing schedules. The Exchange believes it is reasonable, equitable, and not unfairly discriminatory to eliminate the MDR program because the MDR Rebate program has had little demonstrable impact on overall quoting quality or participation. The program's complexity and minimal financial return do not justify the administrative burden associated with its maintenance. The Exchange has limited resources to devote to incentive programs, and it is appropriate for the Exchange to reallocate these incentives periodically in a manner that best achieves the Exchange's overall mix of objectives. Those participants that are dissatisfied with the elimination of this program are free to shift their order flow to competing venues that provide incentives or qualifying criteria more in line with participants' objectives.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>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.</P>
                <HD SOURCE="HD3">Intermarket Competition</HD>
                <P>In terms of inter-market competition, the Exchange notes that it operates in a highly competitive market in which market participants can readily favor competing venues if they deem fee levels at a particular venue to be excessive, or rebate opportunities available at other venues to be more favorable. In such an environment, the Exchange must continually adjust its fees to remain competitive with other exchanges and with alternative trading systems that have been exempted from compliance with the statutory standards applicable to exchanges. Because competitors are free to modify their own fees in response, and because market participants may readily adjust their order routing practices, the Exchange believes that the degree to which fee changes in this market may impose any burden on competition is extremely limited.</P>
                <P>The Exchange does not have significant market share, to be categorized as having enough market power to burden competition. Moreover, as noted above, price competition between exchanges is fierce, with liquidity and market share moving freely between exchanges in reaction to fee and credit changes. This is in addition to free flow of order flow to and among off-exchange venues, which comprises upwards of 45% of industry volume.</P>
                <P>In sum, if the change proposed herein is unattractive to market participants, it is likely that the Exchange will lose market share as a result. Accordingly, the Exchange does not believe that the proposed change will impair the ability of members or competing order execution venues to maintain their competitive standing in the financial markets.</P>
                <HD SOURCE="HD3">Intramarket Competition</HD>
                <P>In terms of intramarket competition, the proposed change to the credit available to a member does not impose a burden on competition and will not place any category of Exchange participant at a competitive disadvantage. The Exchange notes that its members are free to trade on other venues to the extent they believe that these proposals are not attractive. As one can observe by looking at any market share chart, price competition between exchanges is fierce, with liquidity and market share moving freely between exchanges in reaction to fee and credit changes.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were either solicited or received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The foregoing rule change has become effective pursuant to Section 19(b)(3)(A)(ii) of the Act.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         15 U.S.C. 78s(b)(3)(A)(ii).
                    </P>
                </FTNT>
                <P>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: (i) necessary or appropriate in the public interest; (ii) for the protection of investors; or (iii) 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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-PHLX-2025-19 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>
                    • Send paper comments in triplicate to Secretary, Securities and Exchange 
                    <PRTPAGE P="16229"/>
                    Commission, 100 F Street NE, Washington, DC 20549-1090.
                </P>
                <FP>
                    All submissions should refer to file number SR-PHLX-2025-19. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-PHLX-2025-19 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>11</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>11</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06517 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102837; File No. SR-BOX-2025-10]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing of Proposed Rule Change To Amend BOX Rules 3120 (Position Limits), 5020 (Criteria for Underlying Securities), and 5055 (FLEX Equity Options) To Permit the Listing and Trading of Options on the Fidelity Ethereum Fund</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 10, 2025, BOX Exchange 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 self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The Exchange proposes to amend Rules 3120 (Position Limits), 5020 (Criteria for Underlying Securities), and 5055 (FLEX Equity Options) to permit the listing and trading of options on the Fidelity Ethereum Fund. 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 
                    <E T="03">https://rules.boxexchange.com/rulefilings</E>
                    .
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Rules 3120 (Position Limits) and 5020 (Criteria for Underlying Securities) to allow the Exchange to list and trade options on the Fidelity Ethereum Fund (the “Fidelity Fund”).
                    <SU>3</SU>
                    <FTREF/>
                     Additionally, the Exchange proposes to amend Rule 5055 (FLEX Equity Options). This is a competitive filing that is based on a proposal recently submitted by Cboe Exchange, Inc. (“CBOE”) and approved by the Commission.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; 
                        <E T="03">and</E>
                         SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ethereum ETP Approval Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102797 (April 9, 2025) (Order Approving SR-CBOE-2025-036, as modified by Amendment No. 1) (“CBOE Approval Order”).
                    </P>
                </FTNT>
                <P>
                    As discussed herein and as provided in the CBOE Approval Order, the Exchange believes options on the Fidelity Fund would permit increased hedging strategies and cost efficiency, with respect to the underlying Funds. Further, permitting the listing of such options would enhance the transparency and efficiency of markets in these and correlated products. Current Rule 5020(h) provides that subject to certain other criteria set forth in that Rule, securities deemed appropriate for options trading include Exchange-Traded Fund Shares (“ETFs”), that represent certain types of interests 
                    <SU>5</SU>
                    <FTREF/>
                     and exchange-traded products 
                    <PRTPAGE P="16230"/>
                    (“ETPs”) structured as trusts that hold precious metals (which are deemed commodities).
                    <SU>6</SU>
                    <FTREF/>
                     Like ETPs backed by precious metals (
                    <E T="03">i.e.,</E>
                     commodities), the Exchange proposes to allow options trading on the Fidelity Fund that hold Ethereum—which is also deemed a commodity.
                    <SU>7</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Rule 5020(h) which provides that securities deemed appropriate for options trading shall include shares or other securities (“Exchange-Traded Fund Shares”) that are traded on a national securities exchange and are defined as an “NMS stock” under Rule 600 of Regulation NMS and 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 
                        <PRTPAGE/>
                        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® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the abrdn Gold ETF Trust, the abrdn Silver ETF Trust, the abrdn Palladium ETF Trust, the abrdn Platinum ETF Trust, the Sprott Physical Gold Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, or the ARK 21Shares Bitcoin ETF; provided that all conditions in Rules 5020(h)(1) and (2) are met.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Rule 5020(h) (permitting the listing and trading of options on certain ETPs backed by precious metals).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 5020(h).
                    </P>
                </FTNT>
                <P>
                    The Fidelity Fund is an Ethereum-backed commodity ETF structured as a trust. Similar to any shares currently deemed appropriate for options trading under Rule 5020(h), the investment objective of the Fidelity Fund is for its shares to reflect the performance of Ethereum (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to Ethereum without the complexities of Ethereum delivery. As is the case for shares currently deemed appropriate for options trading, the Fidelity Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of Ethereum and are designed to track Ethereum or the performance of the price of Ethereum and offer access to the Ethereum market.
                    <SU>8</SU>
                    <FTREF/>
                     The Fidelity Fund provides investors with cost-efficient alternatives that allow a level of participation in the Ethereum market through the securities market. The primary substantive difference between the Fidelity Fund and Exchange-Traded Fund Shares currently deemed appropriate for options trading are that Exchange-Traded Fund Shares may hold securities, certain financial instruments, specified precious metals (which are deemed commodities), and Bitcoin (which is also deemed a commodity), while the Fidelity Fund holds Ethereum (which is also deemed a commodity).
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>The Exchange believes the Fidelity Fund satisfies the Exchange's initial listing standards for Exchange-Traded Fund Shares on which the Exchange may list options. Specifically, the Fidelity Fund satisfies the initial listing standards set forth in Rule 5020(h)(1) and (2), as is the case for other shares on which the Exchange lists options (including trusts that hold commodities). Rule 5020(h)(1) requires that shares must either (i) meet the criteria and guidelines set forth in paragraphs (a) and (b) of Rule 5020; or (ii) the Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares, all as described in the Exchange-Traded Fund Shares' prospectus. The Fidelity Fund satisfies Rule 5020(h)(2), as it is subject to this creation and redemption process.</P>
                <P>
                    While not required by the Rules for purposes of options listings, the Exchange believes the Fidelity Fund satisfies the criteria and guidelines set forth in Rule 5020(b). Pursuant to Rule 5020(a), a security 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 Securities Exchange Act of 1934, as amended (the “Act”)), and be characterized by a substantial number of outstanding shares that are widely held and actively traded.
                    <SU>9</SU>
                    <FTREF/>
                     The Fidelity Fund is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>10</SU>
                    <FTREF/>
                     As provided in the CBOE Approval Order, the Fidelity Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 5020(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>
                    Specifically, as shown in the CBOE Approval Order, as of December 23, 2024, the Fidelity Fund had 41,700,000 shares outstanding, which is nearly six times more than the minimum number of shares of a corporate stock (
                    <E T="03">i.e.,</E>
                     7,000,000 shares) that the Exchange generally requires to list options on that stock pursuant to Rule 5020(b)(1). The Exchange believes this demonstrates that the Fidelity Fund is characterized by a substantial number of outstanding shares.
                </P>
                <P>Further, as provided in the CBOE Approval Order, as of November 26, 2024, there were 38,170 beneficial holders of shares of the Fidelity Fund, which is significantly more than 2,000 beneficial holders (approximately 19 times more), which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to Rule 5020(b)(2). Therefore, the Exchange believes the shares of the Fidelity Fund are widely held.</P>
                <P>The Exchange also believes the shares of the Fidelity Fund are actively traded. As provided in the CBOE Approval Order, as of December 23, 2024, the total trading volume (by shares) and the approximate average daily volume (“ADV”) (in shares and notional) from July 23, 2024 (the date on which shares of the Fidelity Fund began trading) to December 23, 2024 for the Fidelity Fund was as follows:</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s20,20,20">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Trading volume 
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV 
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV 
                            <LI>(notional $)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">115,589,047</ENT>
                        <ENT>1,070,269</ENT>
                        <ENT>33,864,193</ENT>
                    </ROW>
                </GPOTABLE>
                <PRTPAGE P="16231"/>
                <P>As demonstrated above, despite the fact that the Fidelity Fund has been trading for approximately five months as of December 23, 2024, its total trading volume as of that date was substantially higher than 2,400,000 shares (more than 48 times that amount), which is the minimum 12-month volume the Exchange generally requires for a corporate stock in order to list options on that security as set forth in Rule 5020(b)(4). Additionally, as of December 23, 2024, the trading volume for the Fidelity Fund was in the top 5% of all ETFs that are currently trading. The Exchange believes this data demonstrates the Fidelity Fund is characterized as having shares that are actively traded.</P>
                <P>Options on the Fidelity Fund will be subject to the Exchange's continued listing standards set forth in Rule 5030(h) for ETFs and ETPs deemed appropriate for options trading pursuant to Rule 5020(h). Specifically, 5030(h) provides that funds that were initially approved for options trading pursuant to 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 fund, if the fund ceases to be an NMS stock or if the fund is halted from trading in their primary market. In addition, options on funds may be subject to the suspension of opening transactions in any of the following circumstances: (1) in the case of options covering funds approved for trading under Rule 5020(h)(1)(i), in accordance with the terms of subparagraphs (b)(1),(2),(3) and (6) of Rule 5030; (2) in the case of options covering funds approved for trading under Rule 5020(h)(1)(ii) (as is the case for the Fidelity Fund), following the initial twelve-month period beginning upon the commencement of trading in the fund on a national securities exchange and are defined as an NMS stock, there are fewer than 50 record and/or beneficial holders of such fund 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.</P>
                <P>
                    Options on the Fidelity Fund will be physically settled contracts with American-style exercise.
                    <SU>11</SU>
                    <FTREF/>
                     Consistent with current Rule 5050, which governs the opening of options series on a specific underlying security (including ETFs and ETPs), the Exchange will open at least one expiration month for options on the Fidelity Fund 
                    <SU>12</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on the Fidelity Fund for trading on a weekly,
                    <SU>13</SU>
                    <FTREF/>
                     monthly,
                    <SU>14</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>15</SU>
                    <FTREF/>
                     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.
                    <SU>16</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See</E>
                         Rule 5010 (Rights and Obligations of Holders and Writers), which provides that the rights and obligations of holders and writers of option contracts of any class of options dealt in on the Exchange shall be as set forth in the Rules of the Clearing Corporation. 
                        <E T="03">See also</E>
                         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: 
                        <E T="03">https://www.theocc.com/getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/occrules.pdf</E>
                        .
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         Rule 5050(b). The standard expirations are subject to certain listing criteria for underlying securities described within Rule 5020. Standard 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to 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. 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         IM-5050-6.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See</E>
                         IM-5050-13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         IM-5050-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Rule 5070.
                    </P>
                </FTNT>
                <P>
                    Pursuant to IM-5050-1(b), which governs strike prices of series of options on ETFs, the interval of strikes prices for series of options on the Fidelity Fund will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>17</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>18</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>19</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>20</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>21</SU>
                    <FTREF/>
                     Pursuant to Rule 7050, where the price of a series of a Fidelity Fund 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.
                    <SU>22</SU>
                    <FTREF/>
                     Any and all new series of Fidelity Fund 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.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, IM-5050-6, IM-5050-13, and IM-5050-4, specifically set forth intervals between strike prices on Quarterly Options Series, Short Term Option Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         IM-5050-2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         IM-5050-5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         IM-5050-3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Rule 5050(d)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         If options on the Fidelity Fund are eligible to participate in the Penny Interval Program, the minimum increment of $0.01 below $3.00 and $0.05 above $3.00 would apply. 
                        <E T="03">See</E>
                         Rule 7050(a)(3). 
                        <E T="03">See also</E>
                         Rule 7260 (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>The Exchange also proposes to amend IM-3120-2 to provide a position limit of 25,000 same side option contracts for the Fidelity Fund option. Further, Rule 3140 provides that the exercise limits shall be determined in the manner described in Rule 3120, therefore the exercise limits would also be 25,000 contracts.</P>
                <P>
                    As provided in the CBOE Approval Order, these proposed position and exercise limits were determined considering, among other things, the ADV (since trading of the Fidelity Fund began on July 23, 2024) and outstanding shares of the Fidelity Fund (which as discussed above demonstrate that the Fidelity Fund is widely held and actively traded and thus justify these conservatively proposed position limits), as set forth below, along with market capitalization (as of December 23, 2024):
                    <PRTPAGE P="16232"/>
                </P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s20,20,20">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Outstanding
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Market
                            <LI>capitalization</LI>
                            <LI>($)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1,070,269</ENT>
                        <ENT>41,700,000</ENT>
                        <ENT>1,433,229,000</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As provided in the CBOE Approval Order, the number of outstanding shares of the Fidelity Fund were compared to those of other ETFs. The approximate average position (and exercise limit) of ETF options with similar outstanding shares (as of December 31, 2024) was approximately 102,703 contracts, which is significantly higher (approximately 4 times) than the proposed position and exercise limit of 25,000 contracts for Fidelity Fund options.
                    <SU>23</SU>
                    <FTREF/>
                     As discussed above, shares of the Fidelity Fund are actively held and widely traded: (1) the Fidelity Fund (as of December 23, 2024) had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to Rule 5020(b)(1); (2) the Fidelity Fund (as of November 26, 2024) had significantly more than 2,000 beneficial holders, which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to Rule 5020(b)(2); and (3) the Fidelity Fund had a trading volume in the approximately five-month time period since it began trading substantially higher than 2,400,000 shares, which is the minimum 12-month volume the Exchange generally requires for a security in order to list options on that security as set forth in Rule 5020(b)(4).
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         The position limits for those ETF options for which the underlying ETFs had similar outstanding shares were all 50,000 or above, and nearly half of them had position limits of 200,000 or 250,000 contracts.
                    </P>
                </FTNT>
                <P>As provided in the CBOE Approval Order, if a market participant held the maximum number of positions possible pursuant to the proposed position and exercise limits, the equivalent shares represented by the proposed position/exercise limit would represent approximately 6.0% of the 41,700,000 current outstanding shares of the Fidelity Fund. Therefore, if a market participant held the maximum permissible options positions in Fidelity Fund options and exercised all of them at the same time, that market participant would control a small percentage of the outstanding shares of the Fidelity Fund.</P>
                <P>
                    Rule 3120(d) provides two methods of qualifying for a position limit tier above 25,000 option contracts. The first method is based on six-month trading volume in the underlying security, and the second method is based on slightly lower six-month trading volume 
                    <E T="03">and</E>
                     number of shares outstanding in the underlying security. An underlying stock or ETF that qualifies for method two based on trading volume and number of shares outstanding would be required to have the minimum number of outstanding shares as shown in middle column of the table below.
                </P>
                <P>The table which provides the equivalent shares of the position limits applicable to equity options, including ETFs, further represents the percentages of the minimum number of outstanding shares that an underlying stock or ETF must have to qualify for that position limit (under the second method described above).</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s20,20,20">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Position/exercise limit
                            <LI>(in equivalent shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Minimum
                            <LI>outstanding shares</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage of
                            <LI>outstanding</LI>
                            <LI>shares</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">2,500,000</ENT>
                        <ENT>6,300,000</ENT>
                        <ENT>40.0</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5,000,000</ENT>
                        <ENT>40,000,000</ENT>
                        <ENT>12.5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">7,500,000</ENT>
                        <ENT>120,000,000</ENT>
                        <ENT>6.3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20,000,000</ENT>
                        <ENT>240,000,000</ENT>
                        <ENT>8.3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">25,000,000</ENT>
                        <ENT>300,000,000</ENT>
                        <ENT>8.3</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    The equivalent shares represented by the proposed position and exercise limits for the Fidelity Fund as a percentage of outstanding shares of the Fidelity Fund is significantly lower than the percentage for the lowest possible position limit for equity options of 25,000, which is the position limit the Exchange is proposing for Fidelity Fund options.
                    <SU>24</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         As these percentages are based on the minimum number of outstanding shares an underlying security must have to qualify for the applicable position limit, these are the highest possible percentages that would apply to any option subject to that position and exercise limit. 6,300,000 is the minimum number of outstanding shares an underlying security must have for the Exchange to continue to list options on that security, so this would be the smallest number of outstanding shares permissible for any corporate option that would have a position limit of 25,000 contract. 
                        <E T="03">See</E>
                         IM-5050-2. This rule applies to corporate stock options but not ETF options, which currently have no requirement regarding outstanding shares of the underlying ETF for the Exchange to continue listing options on that ETF. Therefore, there may be ETF options trading for which the 25,000 contract position limit represents an even larger percentage of outstanding shares of the underlying ETF than set forth above.
                    </P>
                </FTNT>
                <P>
                    Further, the proposed position and exercise limits for Fidelity Fund options are equal to the lowest position and exercise limits available in the options industry for equity options, are extremely conservative and more than appropriate given the market capitalization, average daily volume, and high number of outstanding shares of the Fidelity Fund. The proposed position and exercise limit for the Fidelity Fund is also equal to the position and exercise limits for ETFs that hold Bitcoin, as recently approved by the Commission.
                    <SU>25</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 101773 (November 27, 2024), 89 FR 95834 (December 3, 2024) (SR-BOX-2024-29) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Rules 3120 (Position Limits) and 5020 (Criteria for Underlying Securities) to Permit Options Trading on Bitcoin Funds).
                    </P>
                </FTNT>
                <P>
                    All of the above information demonstrates that the proposed position and exercise limits for Fidelity Fund options are more than reasonable and appropriate. The trading volume, ADV, and outstanding shares of the Fidelity Fund demonstrate that its shares are actively traded and widely held, and proposed position and exercise limits are well below those of options on other ETFs with similar market characteristics. The proposed position and exercise limits would be the lowest position and exercise limit available for equity options in the industry, are extremely conservative, and are more than appropriate given the Fidelity 
                    <PRTPAGE P="16233"/>
                    Fund's market capitalization, ADV, and high number of outstanding shares.
                </P>
                <P>Rule 5055 currently permits the Exchange to authorize for trading a FLEX option class on any equity security if it may authorize for trading a non-FLEX option class on that equity security pursuant to Rule 5020. The proposed rule change amends Rule 5055 to exclude the Fidelity Fund from this provision.</P>
                <P>Fidelity Fund options will trade in the same manner as any other fund options on BOX. The Exchange Rules that currently apply to the listing and trading of all ETF or ETP options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Fidelity Fund options on the Exchange in the same manner as they apply to other options on all other ETFs or ETPs that are listed and traded on the Exchange, including the precious-metal backed commodity funds already deemed appropriate for options trading on the Exchange pursuant to current Rule 5050(h).</P>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to options on the Fidelity Fund that it applies to the Exchange's other options products.
                    <SU>26</SU>
                    <FTREF/>
                     Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. The Exchange would be able to obtain information regarding trading in shares of the Fidelity Fund from Cboe BZX Exchange, Inc. (“BZX”) and other markets that trade shares of the Fidelity Fund through ISG. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”) for certain market surveillance, investigation and examinations functions. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate amongst themselves and FINRA responsibilities to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>27</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         The surveillance program includes surveillance patterns for price and volume movements as well as patterns for potential manipulation (
                        <E T="03">e.g.,</E>
                         spoofing and marking the close).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         Section 19(g)(1) of the Act, among other things, requires every self-regulatory organization (“SRO”) registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Fidelity Fund, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance sharing agreement with the Chicago Mercantile Exchange (“CME”) via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>28</SU>
                    <FTREF/>
                     Given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>29</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the Fidelity Fund,
                    <SU>30</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Fidelity Fund. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Fidelity Fund.
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46939.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 2 to SR-CboeBZX-2023-095, Proposed Rule Change To List and Trade Shares of the Fidelity Ethereum Fund Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares (filed May 21, 2024); 
                        <E T="03">See also</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>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 the Fidelity Fund up to the number of expirations currently permissible under the Rules. Because the proposal is limited to one class, the Exchange believes any additional traffic that may be generated from the introduction of Fidelity Fund options will be manageable.</P>
                <P>
                    The Exchange believes that offering options on the Fidelity Fund will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of Ethereum and hedging vehicle to meet their investment needs in connection with Ethereum-related products and positions. The Exchange expects investors will transact in options on the Fidelity Fund in the unregulated over-the-counter (“OTC”) options market,
                    <SU>31</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed options, including (1) enhanced efficiency in initiating and closing out positions; (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 Fidelity Fund 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 the Fidelity Fund 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 (
                    <E T="03">i.e.,</E>
                     precious metals) that it currently lists and trades on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         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.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Securities Exchange Act of 1934 (the 
                    <PRTPAGE P="16234"/>
                    “Act”),
                    <SU>32</SU>
                    <FTREF/>
                     in general, and Section 6(b)(5) of the Act,
                    <SU>33</SU>
                    <FTREF/>
                     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. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>34</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    In particular, the Exchange believes that the proposal to list and trade options on the Fidelity Fund 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 the Fidelity Fund will provide investors with an opportunity to realize the benefits of utilizing options on the Fidelity Fund, including cost efficiencies and increased hedging strategies. The Exchange believes that offering Fidelity Fund 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 Ethereum and with Ethereum-related products and positions. Additionally, the Exchange's offering of Fidelity Fund 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 BOX through increased order flow to the benefit of all investors. The Exchange also notes that it already lists (or has the authority to list) options on other commodity-based ETPs,
                    <SU>35</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as the Fidelity Fund and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     Ethereum rather than Bitcoin or precious metals) and for which the Exchange has not identified any issues with the continued listing and trading of commodity-backed ETP options it currently lists for trading.
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         Rule 5020(h).
                    </P>
                </FTNT>
                <P>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 the Fidelity Fund satisfy the initial listing standards and continued listing standards currently in the Exchange Rules applicable to options on all ETFs and ETPs, including ETPs that hold other commodities already deemed appropriate for options trading on BOX. Additionally, as demonstrated above, the Fidelity Fund is characterized by a substantial number of shares that are widely held and actively traded. Fidelity Fund options will trade in the same manner as any other ETF or ETP 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 margin requirements, will govern the listing and trading of options on the Fidelity Fund in the same manner.</P>
                <P>
                    The proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits for Fidelity Fund options are 25,000 contracts, which is currently the lowest limit applicable to any equity options (including ETF options) and the position and exercise limits that apply to comparable ETFs that hold Bitcoin.
                    <SU>36</SU>
                    <FTREF/>
                     The proposed position and exercise limits are extremely conservative for Fidelity Fund options given the trading volume and outstanding shares for the Fidelity Fund. The CBOE Approval Order demonstrates that the average position and exercise limits of options on ETFs with comparable outstanding shares and trading volume to those of the Fidelity Fund are significantly higher than the proposed position and exercise limits for Fidelity Fund options. Therefore, the proposed position and exercise limits for Fidelity Fund options are conservative relative to options on ETFs with comparable market characteristics.
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See</E>
                         IM-3120-2.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes the proposed rule change to exclude the Fidelity Fund from being eligible for trading as FLEX options is consistent with the Act, because it will permit the Exchange to continue to participate in ongoing discussions with the Commission regarding appropriate position limits for ETF options.
                    <SU>37</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         The Exchange may submit a separate rule filing that would permit the Exchange to authorize for trading FLEX options on the Fidelity Fund (which filing may propose changes to existing FLEX option position limits for such options if appropriate).
                    </P>
                </FTNT>
                <P>
                    The Exchange represents that it has the necessary systems capacity to support the new Fidelity Fund options. As discussed above, 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 Fidelity Fund options. The Exchange notes that the proposed rule change is substantively the same as a rule change proposed by CBOE which the Commission recently approved.
                    <SU>38</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">See supra,</E>
                         note 4.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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 a filing submitted by CBOE that was recently approved by the Commission.
                    <SU>39</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    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 options on the Fidelity Fund will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. The Exchange Rules that currently apply to the listing and trading of all ETF or ETP options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Fidelity Fund options on the Exchange in the same manner as they apply to other options on all other ETFs or ETPs that are listed and traded on BOX. Also, and as stated above, the Commission has approved the trading of options on other 
                    <PRTPAGE P="16235"/>
                    commodity-based ETFs and ETPs.
                    <SU>40</SU>
                    <FTREF/>
                     Further, the Fidelity Fund would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other ETF or ETP for the Exchange to continue listing options on them.
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See</E>
                         Rule 5020(h).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposal to list and trade options on the Fidelity Fund 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 Fidelity Fund options trading on BOX may make BOX 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 the Fidelity Fund. The Exchange notes that listing and trading Fidelity Fund options on BOX 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.</P>
                <P>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 BOX 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 Fidelity Fund options for trading on BOX 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.</P>
                <P>The proposed rule change to exclude options on the Fidelity Fund from being eligible for trading as FLEX Equity Options does not impose an undue burden on intermarket competition because discussions with the Commission regarding appropriate position limits for ETF options are ongoing. Finally, the proposed rule change to exclude options on the Fidelity Fund from being eligible for trading as FLEX Equity Options does not impose an undue burden on intramarket competition because BOX Participants will not be allowed to transact a FLEX Equity Option on the Fidelity Fund.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange has neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>41</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>42</SU>
                    <FTREF/>
                     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 
                    <SU>43</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>44</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         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.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>45</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>46</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Fidelity Fund.
                    <SU>47</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Fidelity Fund, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Fidelity Fund. The proposal also establishes position and exercise limits for options on the Fidelity Fund and provides information regarding the surveillance procedures that will apply to Fidelity Fund options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Fidelity Fund options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>48</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102797 (April 9, 2025) (Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on Shares of the Fidelity Ethereum Fund) (SR-CBOE-2024-036).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <PRTPAGE P="16236"/>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov</E>
                    . Please include file number SR-BOX-2025-10 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-BOX-2025-10. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-2025-10 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>49</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>49</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06516 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>Release No. 34-102838; File No. SR-CBOE-2025-026]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules To List and Trade Options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 10, 2025, Cboe Exchange, Inc. (“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 Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe Exchange, Inc. (the “Exchange” or “Cboe Options”) proposes to amend Rules 4.3, 4.20, and 8.30, to allow the Exchange to list and trade options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF. The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Rule 4.3 regarding the criteria for underlying securities. Specifically, the Exchange proposes to amend Rule 4.3, Interpretation and Policy .06(a)(4) to allow the Exchange to list and trade options on Units 
                    <SU>5</SU>
                    <FTREF/>
                     that represent interests in: the Grayscale Ethereum Trust ETF (the “Grayscale Fund”), the Grayscale Ethereum Mini Trust ETF (the “Grayscale Mini Fund”), and the Bitwise Ethereum ETF (the “Bitwise Fund” and, collectively, the “Ethereum Funds”),
                    <SU>6</SU>
                    <FTREF/>
                     designating them as “Units” deemed appropriate for options trading on the Exchange. This is a competitive filing based on a similar proposal submitted by NYSE American, LLC (“NYSE American”), which was recently approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>7</SU>
                    <FTREF/>
                     Current Rule 4.3, Interpretation and Policy .06 provides that, subject to certain other criteria set forth in that Rule, securities deemed appropriate for options trading include Units that represent certain types of interests,
                    <SU>8</SU>
                    <FTREF/>
                     including interests in certain 
                    <PRTPAGE P="16237"/>
                    specific trusts that hold financial instruments, money market instruments, precious metals (which are deemed commodities), or Bitcoin (which is another crypto currency and deemed a commodity).
                    <SU>9</SU>
                    <FTREF/>
                     In addition, Rule 4.3, Interpretation and Policy .06 requires that Units must either (1) meet the criteria and standards set forth in Rule 4.3, Interpretation and Policy .01(a),
                    <SU>10</SU>
                    <FTREF/>
                     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 Units in a specified aggregate number even if some or all of the investment assets required to be deposited have not been received by the issuer, subject to the condition that the person obligated to deposit the investments has undertaken to deliver the investment assets as soon as possible and such undertaking is secured by the delivery and maintenance of collateral consisting of cash or cash equivalents satisfactory to the issuer, as provided in the respective prospectus.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Rule 1.1 defines a “Unit” (which may also be referred to as an ETF) as a share or other security traded on a national securities exchange and defined as an NMS stock as set forth in Rule 4.3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; and SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ethereum ETP Approval Order”); and 100541 (July 17, 2024), 89 FR 59786 (July 23, 2024) (SR-NYSEArca-2024-44; and SR-NYSEArca-2024-53) (Order Granting Approval of Proposed Rule Changes To List and Trade Shares of the Grayscale Ethereum Mini Trust and ProShares Ethereum ETF).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 99306 (August 7, 2024), 89 FR 65957 (August 13, 2024) (SR-NYSEAMER-2024-45), as amended; and Securities Exchange Act Release No. 102799 (“NYSE American Approval”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Rule 4.3, Interpretation and Policy .06(a), which permits options trading on Units that represent (1) interests in registered investment companies (or series thereof) organized as open-end management investment companies, unit investment trusts or similar entities that hold 
                        <PRTPAGE/>
                        portfolios of securities and/or financial instruments including, but not limited to, stock index futures contracts, options on futures, options on securities and indexes, equity caps, collars and floors, swap agreements, forward contracts, repurchase agreements and reverse purchase 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 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); (2) interests in a trust or similar entity 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 and pays the beneficial owner interest and other distributions on deposited non-U.S. currency, if any, declared and paid by the trust (“Currency Trust Shares”); (3) 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 Units”); (4) represent interests in the SPDR Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Physical Silver Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Physical Palladium Trust, the Aberdeen Standard Physical Platinum Trust, the Sprott Physical Gold Trust, the Goldman Sachs Physical Gold ETF, the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF (the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, and the Bitwise Bitcoin ETF are referred to as the “Bitcoin Funds”); or (5) an interest in a registered investment company (“Investment Company”) organized as an open-end management investment company or similar entity, that invests in a portfolio of securities selected by the Investment Company's investment adviser consistent with the Investment Company's investment objectives and policies, which is issued in a specified aggregate minimum number in return for a deposit of a specified portfolio of securities and/or a cash amount with a value equal to the next determined net asset value (“NAV”), and when aggregated in the same specified minimum number, may be redeemed at a holder's request, which holder will be paid a specified portfolio of securities and/or cash with a value equal to the next determined NAV (“Managed Fund Share”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         On October 18, 2024, the Commission approved the Exchange's proposal to list and trade options on the Fidelity Wise Origin Bitcoin Fund and the ARK 21Shares Bitcoin ETF. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 101387 (October 18, 2024), 89 FR 84948 (October 24, 2024) (SR-CBOE-2024-035).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Rule 4.3, Interpretation and Policy .01 provides for guidelines to be by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <P>
                    The Ethereum Funds are Ethereum-backed commodity ETFs structured as trusts. Similar to any Unit currently deemed appropriate for options trading under Rule 4.3, Interpretation and Policy .06, the investment objective of each Ethereum Fund is for its shares to reflect the performance of Ethereum (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to Ethereum without the complexities of Ethereum delivery. As is the case for Units currently deemed appropriate for options trading, a Ethereum Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of Ethereum and are designed to track Ethereum or the performance of the price of Ethereum and offer access to the Ethereum market.
                    <SU>11</SU>
                    <FTREF/>
                     The Ethereum Funds provide investors with cost-efficient alternatives that allow a level of participation in the Ethereum market through the securities market. The Ethereum Funds are similar to the Bitcoin Funds, except that those funds hold Bitcoin (another cryptocurrency) rather than Ethereum, which are already eligible for options trading on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange's initial listing standards for Units on which options may be listed and traded on the Exchange will apply to the Ethereum Funds. Pursuant to Rule 4.3(a), a security (which includes a Unit) 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 Securities Exchange Act of 1934, as amended (the “Act”)), and be characterized by a substantial number of outstanding shares that are widely held and actively traded.
                    <SU>12</SU>
                    <FTREF/>
                     Additionally, Rule 4.3(a), Pursuant to Rule 4.3, Interpretation and Policy .06, requires that Units must either (1) meet the criteria and standards set forth in Rule 4.3, Interpretation and Policy .01(a),
                    <SU>13</SU>
                    <FTREF/>
                     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 Units in a specified aggregate number even if some or all of the investment assets required to be deposited have not been received by the issuer, subject to the condition that the person obligated to deposit the investments has undertaken to deliver the investment assets as soon as possible and such undertaking is secured by the delivery and maintenance of collateral consisting of cash or cash equivalents satisfactory to the issuer, as provided in the respective prospectus. Each Ethereum Fund satisfies Rule 4.3, Interpretation and Policy .06(b)(2), as each is subject to this creation and redemption process.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 4.3, Interpretation and Policy .01, subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         Rule 4.3, Interpretation and Policy .01 provides for guidelines to be by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <P>
                    While not required by the Rules for purposes of options listings, the Exchange believes the Ethereum Funds satisfy the criteria and guidelines set forth in Rule 4.3, Interpretation and Policy .01. Pursuant to Rule 4.3(a), a security (which includes a Unit) 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.
                    <SU>14</SU>
                    <FTREF/>
                     Each of the Ethereum Funds is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>15</SU>
                    <FTREF/>
                     Further, the Exchange believes each Ethereum Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 4.3, Interpretation and Policy .01, subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <PRTPAGE P="16238"/>
                <P>With respect to the Grayscale Fund, the Grayscale Mini Fund, and the Bitwise Fund, the Exchange reviewed the data presented by NYSE American in its filing with respect to shares outstanding (and corresponding market capitalization), number of beneficial holders, and trading volume. As of November 29, 2024, the Ethereum Funds had the following number of shares outstanding (and corresponding market capitalization):</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,12,20">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Shares
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">
                            Market value
                            <LI>(11/29/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>$5,425,852,635</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>1,547,003,157</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>430,886,200</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As shown above, each of the Ethereum Funds had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to Rule 4.3, Interpretation and Policy .01.
                    <SU>16</SU>
                    <FTREF/>
                     The Exchange believes this demonstrates that each Ethereum Fund is characterized by a substantial number of outstanding shares. Further, the below table contains information regarding the number of beneficial holders of the Ethereum Funds as of December 31, 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         The Exchange notes that on November 19, 2024, the Grayscale Mini Fund underwent a reverse stock split, reducing the number of shares outstanding—and increasing the share price—tenfold.
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s50,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Beneficial holders
                            <LI>(as of</LI>
                            <LI>12/31/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>112,320</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>17,396</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>5,992</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As this table shows, each Ethereum Fund has significantly more than 2,000 beneficial holders (approximately 56, 9, and 3 times more, respectively), which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to pursuant to Rule 4.3, Interpretation and Policy .01.
                    <SU>17</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the shares of each Ethereum Fund are widely held.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         The number of beneficial holders of the Grayscale Mini Fund may have been impacted by the 10:1 reverse stock split, as investors with fewer than 10 shares would have received a cash payout. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes that, based on trading volume since the Ethereum Funds began trading on July 23, 2024, shares of the Ethereum Funds are actively traded. In particular, the table below sets forth the total trading volume (by shares and notional) from the inception of trading through either November 29, 2024 (for the Grayscale Fund and the Grayscale Mini Fund) or December 31, 2024 (for the Bitwise Fund). In addition, the below table illustrates the average daily volume (“ADV”) over the 30-day period of either October 29, 2024—through November 29, 2024 (for the Grayscale Fund and the Grayscale Mini Fund) or November 29, 2024—through December 31, 2024 (for the Bitwise Fund).
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31/24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,12,20,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Trading
                            <LI>volume</LI>
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Trading volume
                            <LI>(notional $)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>427,312,540</ENT>
                        <ENT>$10,289,781,199</ENT>
                        <ENT>4,237,811</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>172,400,020</ENT>
                        <ENT>4,614,428,230</ENT>
                        <ENT>3,065,796</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>44,477,060</ENT>
                        <ENT>959,491,343</ENT>
                        <ENT>291,627</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As demonstrated above, even though the Ethereum Funds have been trading for less than one year, the trading volume for each Ethereum Fund is substantially higher than 2,400,000 shares (roughly 178, 72, and 16 times that amount), which is the minimum 12-month volume the Exchange generally requires for a security in order to list options on that security as set forth in Rule 4.3, Interpretation and Policy .01. The Exchange believes this data demonstrates each Ethereum Fund is characterized by a substantial number of outstanding shares that are actively traded.</P>
                <P>
                    Options on the Ethereum Funds will also be subject to the Exchange's continued listing standards set forth in Rule 4.4, Interpretation and Policy .06 for Units deemed appropriate for options trading pursuant to Rule 4.3, Interpretation and Policy .06. Specifically, Rule 4.4, Interpretation and Policy .06 provides that Units that were initially approved for options trading pursuant to Rule 4.3, Interpretation and Policy .06 shall be deemed not to meet the requirements for continued approval, and the Exchange shall not open for trading any additional series of option contracts of the class covering such Units, if the Units cease to be an NMS stock or the Units are halted from trading in their primary market. Additionally, options on Units may be subject to the suspension of opening transactions in any of the following circumstances: (1) in the case of options covering Units approved for trading under Rule 4.3, Interpretation and Policy .06(b)(1), in accordance with the terms of paragraphs (a), (b), and (c) of Rule 4.4, Interpretation and Policy .01; (2) in the case of options covering Units approved for trading under Rule 4.3 Interpretation and Policy .06(b)(2) (as is the case for the Ethereum Funds), following the initial twelve-month period beginning upon the commencement of trading in the Units on a national securities exchange and are defined as an NMS stock, there are fewer than 50 record and/or beneficial holders of such Units for 30 or more consecutive trading days; (3) the value of the index or portfolio of securities, non-U.S. currency, or portfolio of commodities including commodity futures contracts, options on commodity futures contracts, swaps, forward contracts and/or options on physical commodities and/or financial 
                    <PRTPAGE P="16239"/>
                    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.
                </P>
                <P>
                    Options on each Ethereum Fund will be physically settled contracts with American-style exercise.
                    <SU>19</SU>
                    <FTREF/>
                     Consistent with current Rule 4.5, which governs the opening of options series on a specific underlying security (including Units), the Exchange will open at least one expiration month for options on each Ethereum Fund 
                    <SU>20</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on any Ethereum Fund for trading on a weekly,
                    <SU>21</SU>
                    <FTREF/>
                     monthly,
                    <SU>22</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>23</SU>
                    <FTREF/>
                     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.
                    <SU>24</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Rule 4.2, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">and</E>
                         Equity Options Product Specifications January 3, 2024), available at Equity Options Specifications (
                        <E T="03">cboe.com</E>
                        ); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5(b). The monthly expirations are subject to certain listing criteria for underlying securities described within Rule 4.3. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Rule 4.5(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. 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5(d).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5(g).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5(f).
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rule 4.5, Interpretation and Policy .07, which governs strike prices of series of options on Units, the interval of strikes prices for series of options on Ethereum Funds will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>25</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>26</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>27</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>28</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>29</SU>
                    <FTREF/>
                     Pursuant to Rule 5.4, where the price of a series of an Ethereum Fund 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.
                    <SU>30</SU>
                    <FTREF/>
                     Any and all new series of Ethereum Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 4.5 and 5.4, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Rules 4.5(d), (e), and (g) specifically sets forth intervals between strike prices on Quarterly Options Series, Short Term Option Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5, Interpretation and Policy .01(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5, Interpretation and Policy .01(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5, Interpretation and Policy .01(f).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         If options on an Ethereum Fund 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. 
                        <E T="03">See</E>
                         5.4(d) (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>Ethereum Fund options will trade in the same manner as any other Unit options on the Exchange. The Exchange Rules that currently apply to the listing and trading of all Unit options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Ethereum Funds options on the Exchange in the same manner as they apply to other options on all other Units that are listed and traded on the Exchange, including the precious-metal backed commodity Units and the Bitcoin Funds already deemed appropriate for options trading on the Exchange pursuant to current Rule 4.3, Interpretation and Policy .06(a)(4).</P>
                <P>Rule 4.20 currently permits the Exchange to authorize for trading a FLEX option class on any equity security if it may authorize for trading a non-FLEX option class on that equity security pursuant to Rule 4.3. The proposed rule change amends Rule 4.20 to exclude the Ethereum Funds from this provision.</P>
                <P>Position and exercise limits for options on ETFs, including options on Ethereum Funds, are determined pursuant to Rules 8.30 and 8.42, respectively. Position and exercise limits for ETF options vary according to the number of outstanding shares and the trading volumes of the underlying ETF over the past six months, where the largest in capitalization and the most frequently traded ETFs have an option position and exercise limit of 250,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market; and smaller capitalization ETFs have position and exercise limits of 200,000, 75,000, 50,000 or 25,000 contracts (with adjustments for splits, recapitalizations, etc.) on the same side of the market.</P>
                <P>The Exchange proposes to amend Rule 8.30. Specifically, the Exchange proposes to amend Rule 8.30, Interpretation and Policy .10 to provide a position limit of 25,000 same side option contracts for each Ethereum Fund option. Additionally, pursuant to Rule 8.42, Interpretation and Policy .02, the exercise limits for options on each Ethereum Fund will be equivalent to this proposed position limit.</P>
                <P>
                    In considering the appropriate position and exercise limits for the Ethereum Funds, the Exchange reviewed the data presented by NYSE American in its filing with respect to the Bitwise Fund, the Grayscale Fund and the Grayscale Mini Fund.
                    <SU>31</SU>
                    <FTREF/>
                     NYSE American aggregated market capitalization, volume, and shares outstanding data of the Ethereum Funds and compared that data to those of other ETFs, and compared the proposed position limit of the Ethereum Funds to the position limits of the options overlying those other ETFs. The Exchange reviewed NYSE American's data that demonstrated that each of these three Ethereum Funds would easily qualify for much higher position limits available to other ETFs and ETPs pursuant to the criterion in Rule 8.30, Interpretation and Policy .02.
                    <SU>32</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         NYSE American Approval.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         Rule 8.30, Interpretation and Policy .02.
                    </P>
                </FTNT>
                <P>
                    As noted above, Exchange Rules set forth position (and exercise) limits for options, which vary according to the number of shares outstanding and the amount of trading in underlying during the most recent six-month period.
                    <SU>33</SU>
                    <FTREF/>
                     As demonstrated below, the trading volume in each Fund for the time periods specified in the following table is sufficient to qualify each Fund for position limits in excess of the proposed 25,000-contract limit.
                    <SU>34</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         Rule 8.30, Interpretation and Policy .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31/24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                    </P>
                </FTNT>
                <PRTPAGE P="16240"/>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s50,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">Total volume</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>427,312,540 (7/23/24-11/29/24).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>172,400,020 (7/23/24-11/29/24).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>
                            44,477,060
                            <LI>(7/23/24-12/31/24).</LI>
                        </ENT>
                    </ROW>
                </GPOTABLE>
                <FP>
                    Based on this trading volume during these time periods, the trading volume in the Grayscale Fund and the Grayscale Mini Fund set forth in the NYSE American Approval well exceeds the requisite minimum of 100,000,000 shares necessary to qualify for the 250,000-contract position and exercise limits.
                    <SU>35</SU>
                    <FTREF/>
                     By comparison, the underlying of other options with six-month trading volume less than the volumes in the table above are eligible for position and exercise limits of at least 250,000.
                    <SU>36</SU>
                    <FTREF/>
                     Further, the trading volume during this time period for the Bitwise Fund set forth in the NYSE American Approval well exceeded the requisite minimum of 40,000,000 shares necessary to qualify for the 75,000-contract position (and exercise) limit, which is three times the proposed 25,000-contract limit.
                    <SU>37</SU>
                    <FTREF/>
                     Finally, the proposed 25,000-contract position limit is the default for options that do not otherwise qualify for a higher limit and is therefore an adequate limit for each Ethereum Fund.
                    <SU>38</SU>
                    <FTREF/>
                </FP>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         Rule 8.30, Interpretation and Policy .02(e) states that to be eligible for the 250,000 option contract limit, either the most recent six-month trading volume of the underlying security must have totaled at least 100,000,000 shares; or the most recent six-month trading volume of the underlying security must have totaled at least 75,000,000 shares and the underlying security must have at least 300,000,000 currently outstanding.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See https://www.theocc.com/Market-Data/Market-Data-Reports/Series-and-Trading-Data/Series-Search</E>
                         (including the following symbols that have a position limit of 250,000: GLD, IAU, SLV, SIVR, SGOL).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         Rule 8.30, Interpretation and Policy .02(c) states that to be eligible for the 75,000 option contract limit, either the most recent six-month trading volume of the underlying security must have totaled at least 40,000,000 shares; or the most recent six-month trading volume of the underlying security must have totaled at least 30,000,000 shares and the underlying security must have at least 120,000,000 currently outstanding.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         Rule 8.30, Interpretation and Policy .02(a) states that the 25,000 option contract limit applies to those options having an underlying security that does not meet the requirements for a higher option contract limit.
                    </P>
                </FTNT>
                <P>Second, with respect to the outstanding shares of these three Ethereum Funds, the Exchange reviewed NYSE American's data regarding the outstanding shares of each of these Ethereum Funds. NYSE American performed an exercise to demonstrate that if a market participant held the maximum number of contracts possible pursuant to the proposed position and exercise limits (25,000 contracts), the equivalent shares represented by the proposed position and exercise limits (2,500,000 shares) would represent the following approximate percentage of outstanding shares as of November 29, 2024:</P>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,12,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Proposed
                            <LI>position/</LI>
                            <LI>exercise</LI>
                            <LI>limits in</LI>
                            <LI>equivalent</LI>
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Outstanding
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage of
                            <LI>outstanding</LI>
                            <LI>shares</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>1.4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>5.5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>15.1</ENT>
                    </ROW>
                </GPOTABLE>
                <FP>As this table demonstrates, if a market participant held the maximum permissible options positions in one of the Ethereum Fund options and exercised all of them at the same time, that market participant would control a small percentage of the outstanding shares of the underlying Ethereum Fund. For example, as noted above, a position limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the applicable Ethereum Fund (if that market participant exercised all its options). NYSE American used the number of shares outstanding for each Ethereum Fund as of November 29, 2024, and calculated the approximate number of market participants that could hold the maximum of 25,000 same side positions in each Ethereum Fund that would equate to the number of shares outstanding of that Ethereum Fund:</FP>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s50,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Outstanding
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>market</LI>
                            <LI>participants</LI>
                            <LI>with 25,000</LI>
                            <LI>same side</LI>
                            <LI>positions</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>71</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>18</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>7</ENT>
                    </ROW>
                </GPOTABLE>
                <FP>
                    This means if 71 market participants had 25,000 same side positions in options on the Grayscale Fund, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. Similarly, this means if 18 market participants had 25,000 same side positions in options on the Grayscale Mini Fund, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. Finally, this means if 7 market participants had 25,000 same side positions in options on the Bitwise Fund, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. The Exchange believes it is 
                    <PRTPAGE P="16241"/>
                    highly unlikely for this to occur; however, even if such event did occur, the Exchange would not expect any of the Ethereum Fund to be under stress because such an event would merely induce the creation of more shares through the trust's creation and redemption process.
                </FP>
                <P>
                    NYSE American also performed an exercise to compare the size of the proposed position limit to the market capitalization of the Ethereum market given that the issuer of each of these three Ethereum Funds may create and redeem shares that represent an interest in Ethereum. NYSE American took the global supply of Ethereum, which was 120.44 million and the price of one Ethereum, which was approximately $3,593.49,
                    <SU>39</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $439.78 billion. Consider the proposed position and exercise limit of 25,000 option contracts for each Ethereum Fund option. A position and exercise limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the Grayscale Fund, Grayscale Mini Fund, and Bitwise Fund, as applicable (if that market participant exercised all its options). NYSE American considered the share price of each Ethereum Fund on November 29, 2024 and calculated the value of 2,500,000 shares of the Ethereum Fund at that price, and the approximate percentage of that value of the size of the Ethereum market:
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See https://finance.yahoo.com/quote/ETH-USD/history.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,12,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Share price
                            <LI>($)</LI>
                        </CHED>
                        <CHED H="1">
                            Value of
                            <LI>2,500,000</LI>
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage of
                            <LI>Ethereum</LI>
                            <LI>market</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>30.15</ENT>
                        <ENT>75,250,000</ENT>
                        <ENT>0.017</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>33.84</ENT>
                        <ENT>84,600,000</ENT>
                        <ENT>0.020</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>25.80</ENT>
                        <ENT>64,500,000</ENT>
                        <ENT>0.015</ENT>
                    </ROW>
                </GPOTABLE>
                <FP>Therefore, if a market participant with the maximum 25,000 same side contracts in options on the Grayscale Fund, the Grayscale Mini Fund, or the Bitwise Fund exercised all positions at one time, such an event would have no practical impact on the Ethereum market.</FP>
                <P>The Exchange also reviewed NYSE American's data regarding the market capitalization of each of these three Ethereum Funds relative to the market capitalization of the entire Ethereum market, as of November 29, 2024:</P>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,12,20,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1">
                            Ethereum/
                            <LI>shares</LI>
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">
                            Market value
                            <LI>($)</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage of
                            <LI>total</LI>
                            <LI>Ethereum</LI>
                            <LI>market</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Total Ethereum Market</ENT>
                        <ENT>120,440,000</ENT>
                        <ENT>432,799,935,600</ENT>
                        <ENT>100</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>5,425,852,635</ENT>
                        <ENT>1.25</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>1,547,003,157</ENT>
                        <ENT>0.36</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>430,886,200</ENT>
                        <ENT>0.10</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As this data gathered by NYSE American demonstrates, the Ethereum Funds collectively represent approximately 1.71% of the global supply of Ethereum (120,440,000).
                    <SU>40</SU>
                    <FTREF/>
                     Based on the $30.15 price of a Grayscale Fund share on November 29, 2024, a market participant could have redeemed one Ethereum for approximately 119 Grayscale Fund shares. Another 14,354,890,070 Grayscale Fund shares could be created before the supply of Ethereum was exhausted. As a result, 5,742 market participants would have to simultaneously exercise 25,000 same side positions in Grayscale Fund options to receive shares of the Grayscale Fund holding the entire global supply of Ethereum. Similarly, based on the $33.84 price of a Grayscale Mini Fund share on November 29, 2024, a market participant could have redeemed one Ethereum for approximately 106 Grayscale Mini Fund shares. Another 12,789,596,206 Grayscale Mini Fund shares could be created before the supply of Ethereum was exhausted. As a result, 5,116 market participants would have to simultaneously exercise 25,000 same side positions in Grayscale Mini Fund options to receive shares of Grayscale Mini Fund holding the entire global supply of Ethereum. Similarly, based on the $25.80 price of a Bitwise Fund share on November 29, 2024, a market participant could have redeemed one Ethereum for approximately 139 Bitwise Fund shares. Another 16,775,191,302 Bitwise Fund shares could be created before the supply of Ethereum was exhausted. As a result, 6,710 market participants would have to simultaneously exercise 25,000 same side positions in Bitwise Fund options to receive shares of Bitwise Fund holding the entire global supply of Ethereum. Unlike the Ethereum Funds, the number of shares that corporations may issue is limited. However, like corporations, which authorize additional shares, repurchase shares, or split their shares, the Ethereum Funds may create, redeem, or split shares in response to demand. The supply of Ethereum is larger than the available supply of most securities.
                    <SU>41</SU>
                    <FTREF/>
                     Given the significant unlikelihood of any of these events ever occurring, the Exchange does not believe options on the Ethereum Funds should be subject to position and exercise limits even lower than those proposed (which are already equal to the lowest available limit for equity options in the industry) to protect the supply of Ethereum.
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         The market capitalization of ethereum would rank in the top 20 among securities. See 
                        <E T="03">https://companiesmarketcap.com/usa/largest-companies-in-the-usa-by-market-cap/.</E>
                    </P>
                </FTNT>
                <PRTPAGE P="16242"/>
                <P>
                    NYSE American compared the proposed position limits to the position limit of CME Ethereum futures. The Chicago Mercantile Exchange (“CME”) imposes a position limit of 8,000 futures (for the initial spot month) on its ethereum futures contract.
                    <SU>42</SU>
                    <FTREF/>
                     On November 29, 2024, CME Jan 25 Ethereum Futures settled at $3,629.69. A position of 8,000 CME Ethereum futures, therefore, would have a notional value of $1,451,876,000. The following table shows the share price of each Ethereum Fund on November 29, 2024, and the approximate number of option contracts that equates to that notional value:
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 349 (description of CME ether futures) and Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices. Each CME ether futures contract is valued at fifty ethers as defined by the CME CF Ether Reference Rate (“ERR”). 
                        <E T="03">See</E>
                         CME Rulebook Chapter 349.
                    </P>
                </FTNT>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s50,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Share price
                            <LI>($)</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>option</LI>
                            <LI>contracts</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>30.15</ENT>
                        <ENT>481,551</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>33.84</ENT>
                        <ENT>429,041</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>25.80</ENT>
                        <ENT>562,743</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The approximate number of option contracts for each Ethereum Fund that would equate to the notional value of CME Ethereum futures is significantly higher than the proposed limit of 25,000 options contract for each Ethereum Fund option. The fact that many options ultimately expire out-of-the-money and thus are not exercised for shares of the underlying, while the delta of an Ethereum future is 1, further demonstrates how conservative the proposed limits of 25,000 options contracts are for the Ethereum Fund options.</P>
                <P>
                    The Exchange notes, again, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>43</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>44</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. Considering CME's position limits on futures for Ethereum, the Exchange believes that that the proposed same side position limits are more than appropriate for the Ethereum options.
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Consistent with its position regarding the irrelevance of bitcoin supply to position limits for options on bitcoin ETPs, the Exchange likewise believes the available supply of Ethereum is not relevant to the determination of position and exercise limits for Ethereum Fund options.
                    <SU>45</SU>
                    <FTREF/>
                     Position and exercise limits are not a tool that should be used to address a potential limited supply of the underlying of an underlying. Position and exercise limits do not limit the total number of options that may be held, but rather they limit the number of positions a single customer may hold or exercise at one time.
                    <SU>46</SU>
                    <FTREF/>
                     “Since the inception of standardized options trading, the options exchanges have had rules imposing limits on the aggregate number of options contracts that a member or customer could hold or exercise.” 
                    <SU>47</SU>
                    <FTREF/>
                     Position and exercise limit rules are intended “to prevent the establishment of options positions that can be used or might create incentives to manipulate or disrupt the underlying market so as to benefit the options position. In particular, position and exercise limits are designed to minimize the potential for mini-manipulations and for corners or squeezes of the underlying market. In addition, such limits serve to reduce the possibility for disruption of the options market itself, especially in illiquid options classes.” 
                    <SU>48</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         The Exchange is unaware of any proposed rule change related to position and exercise limits for any equity option (including commodity ETF options) for which the Commission required consideration of whether the available supply of an underlying (whether it be a corporate stock or an ETF) or the contents of an ETF (commodity or otherwise) should be considered when an exchange proposed to establish those limits. 
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 57894 (May 30, 2008), 73 FR 32061 (June 5, 2008) (SR-CBOE-2005-11) (approval order in which the Commission stated that the “listing and trading of Gold Trust Options will be subject to the exchanges' rules pertaining to position and exercise limits and margin”). The Exchange notes when the Commission approved this filing, the position limits in Rule 8.30 were the same as they are today. For reference, the current position and exercise limits for options on SPDR Gold Shares ETF (“GLD”) and options on iShares Silver Trust (“SLV”) are 250,000 contracts, or 10 times that proposed position and exercise limit for the Ethereum Fund options.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         For example, suppose an option has a position limit of 25,000 option contracts and there are a total of 10 investors trading that option. If all 10 investors max out their positions, that would result in 250,000 option contracts outstanding at that time. However, suppose 10 more investors decide to begin trading that option and also max out their positions. This would result in 500,000 option contracts outstanding at that time. An increase in the number of investors could cause an increase in outstanding options even if position limits remain unchanged.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange notes that a Registration Statement on Form S-1 was filed with the Commission for each Ethereum Fund, each of which described the supply of Ethereum as being unlimited.
                    <SU>49</SU>
                    <FTREF/>
                     Each Registration Statement permits an unlimited number of shares of the applicable Ethereum Fund to be created. Further, the Commission approved proposed rule changes that permitted the listing and trading of shares of each Ethereum Fund, which approval did not comment on the sufficient supply of Ethereum or address whether there was a risk that permitting an unlimited number of shares for a Ethereum Fund would 
                    <PRTPAGE P="16243"/>
                    impact the supply of ether.
                    <SU>50</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the Commission had ample time and opportunity to consider whether the supply of ethereum was sufficient to permit the creation of unlimited Ethereum Fund shares, and does not believe considering this supply with respect to the establishment of position and exercise limits is appropriate given its lack of relevance to the purpose of position and exercise limits. However, given the significant size of the Ethereum supply, the proposed positions limits are more than sufficient to protect investors and the market.
                </P>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Grayscale Fund Form S-1 Registration Statement, at p. 77, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2020455/000119312524106957/d756153ds1.htm;</E>
                         Grayscale Mini Fund Amendment No. 5 to Form S-1 Registration Statement, at p. 79, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2020455/000119312524181081/d756153ds1a.htm;</E>
                         and Bitwise Fund Form S-1 Registration Statement 1, at p. 17, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2013744/000199937124007581/bitwise-s1a_061824.htm</E>
                         (“Ethereum Funds Reg. Stmts.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>
                    All of the above information demonstrates that the proposed position and exercise limits for the Ethereum Fund options are more than reasonable and appropriate. The trading volume, ADV, and outstanding shares of each Ethereum Fund demonstrate that these funds are actively traded and widely held, and proposed position and exercise limits are well below those of other ETFs with similar market characteristics. The proposed position and exercise limits are the lowest position and exercise limits available for equity options in the industry, are extremely conservative, and are more than appropriate given each Ethereum Fund's market capitalization and ADV. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying Ethereum Funds as well as the Ethereum market.
                    <SU>51</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. Cboe intends to apply those same program procedures to options on the Ethereum Funds that it applies to the Exchange's other options products, including options on the Bitcoin Funds.
                    <SU>52</SU>
                    <FTREF/>
                     Cboe's market surveillance staff would have access to the surveillances it conducts, as well as that FINRA conducts on its behalf, as well as that conducted by Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe EDGX Exchange, Inc.
                    <SU>53</SU>
                    <FTREF/>
                     with respect to the Ethereum Funds and would review activity in the underlying Ethereum Funds when conducting surveillances for market abuse or manipulation in the options on the Ethereum Funds. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining information from its affiliated markets, the Exchange would be able to obtain information regarding trading in shares of the Ethereum Funds from their primary listing markets and from other markets that trade shares of the Ethereum Funds through ISG. In addition, Cboe has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”) for certain market surveillance, investigation and examinations functions. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate amongst themselves and FINRA responsibilities to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>54</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         The surveillance program includes surveillance patterns for price and volume movements as well as patterns for potential manipulation (
                        <E T="03">e.g.,</E>
                         spoofing and marking the close).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe EDGX Exchange, Inc. are affiliated markets of the Exchange.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         Section 19(g)(1) of the Act, among other things, requires every self-regulatory organization (“SRO”) registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Ethereum Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the [CME] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME Ether futures market.” 
                    <SU>55</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>56</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Ethereum Funds,
                    <SU>57</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ethereum Funds. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ethereum ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, at 46938 (footnotes excluded).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, at 46941 (footnote excluded).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on Ethereum Funds will be available via OPRA and major market data vendors.</P>
                <P>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 Ethereum Funds up to the number of expirations currently permissible under the Rules.</P>
                <P>
                    The Exchange believes that offering options on Ethereum Funds will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of Ethereum and hedging vehicle to meet their investment needs in connection with Ethereum-related products and positions. The Exchange expects investors will transact in options on Ethereum Funds in the unregulated over-the-counter (“OTC”) 
                    <PRTPAGE P="16244"/>
                    options market,
                    <SU>58</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed options, including (1) enhanced efficiency in initiating and closing out positions; (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 Ethereum Fund 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 Units 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 Ethereum Funds 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 Unit options, including Units that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals and Bitcoin) that it currently lists and trades on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         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.
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that applicable Exchange rules will require that customers receive appropriate disclosure before trading options in Ethereum Funds.
                    <SU>59</SU>
                    <FTREF/>
                     Further, brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>60</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         
                        <E T="03">See</E>
                         Rules 9.1(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         
                        <E T="03">See</E>
                         Rule 9.3.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>61</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>62</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>63</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>In particular, the Exchange believes that the proposal to list and trade options on the Ethereum Funds 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 the Ethereum Funds will provide investors with a greater opportunity to realize the benefits of utilizing options on an ETF based on spot Ethereum, including cost efficiencies and increased hedging strategies.</P>
                <P>The Exchange believes that offering options on competitively priced ETFs based on spot Ethereum will benefit investors by providing them with additional, relatively lower-cost risk management tools, allowing them to manage, more easily, their positions and associated risks in their portfolios in connection with exposure to spot Ethereum. Additionally, the Exchange's offering of Ethereum Fund 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. Today, the Exchange lists options on other commodity (including Ethereum) ETFs structured as a trust, which essentially offer the same objectives and benefits to investors, and for which the Exchange has not identified any issues with the continued listing and trading of options on those ETFs.</P>
                <P>The Exchange also believes the proposal to permit options on the Ethereum Funds will remove impediments to and perfect the mechanism of a free and open market and a national market system, because options on the Ethereum Funds will comply with current Exchange Rules. Options on the Ethereum Funds must satisfy the initial listing standards and continued listing standards currently in the Rules, applicable to options on all ETFs, including options on other commodity ETFs already deemed appropriate for options trading on the Exchange pursuant to Rule 4.3, Interpretation and Policy .06(a)(d). Additionally, as demonstrated above, the Ethereum Funds are characterized by a substantial number of shares that are widely held and actively traded. Further, Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (as proposed herein), and margin requirements, will govern the listing and trading of options on the Ethereum Funds.</P>
                <P>
                    The Exchange believes the proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits for options on each of the Ethereum Funds is 25,000 contracts. These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given each Ethereum Fund's market capitalization, ADV, and high number of outstanding shares. The proposed position limit, and exercise limit, is consistent with the Act as it addresses concerns related to manipulation and protection of investors because, as demonstrated above, the position limit (and exercise limit) is extremely conservative and more than appropriate given the Ethereum Funds are actively traded. In support of the proposed position and exercise limits for options on the Ethereum Funds of 25,000 contracts, the Exchange is citing the in depth analysis NYSE American did in their filing. As noted above, in NYSE American Approval, NYSE American considered the: (1) applicable Ethereum Fund's market capitalization and ADV, and proposed position limit in relation to other securities; (2) market capitalization of the entire Ethereum market in terms of exercise risk and availability of deliverables; (3) proposed position limit by comparing it to position limits for derivative products regulated by the CFTC; and (4) supply of Ethereum. Based on the Exchange's review of these analyses, the Exchange believes that the setting position and exercise limits for options on each of the Ethereum Funds is 25,000 contracts is more than appropriate. The proposed position and exercise limits reasonably 
                    <PRTPAGE P="16245"/>
                    and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying as well as the Ethereum market.
                    <SU>64</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Ethereum Fund options. As discussed above, 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 Unit options, including Ethereum Fund options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ethereum Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ethereum Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Ethereum Funds and, as appropriate, would review activity in the underlying Ethereum Funds when conducting surveillances for market abuse or manipulation in the options on the Ethereum Funds. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition, the Exchange has a Regulatory Services Agreement with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ethereum Funds.</P>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Ethereum Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>65</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME ethereum futures market and the spot ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>66</SU>
                    <FTREF/>
                     In light of the foregoing, the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ethereum Funds. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ethereum ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR, at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>66</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46941.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes the proposed rule change to exclude the Ethereum Funds from being eligible for trading as FLEX options is consistent with the Act, because it will permit the Exchange to continue to participate in ongoing discussions with the Commission regarding appropriate position limits for ETF options.
                    <SU>67</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>67</SU>
                         The Exchange will submit a separate rule filing that would permit the Exchange to authorize for trading FLEX options on the Bitcoin Funds (which filing may propose changes to existing FLEX option position limits for such options if appropriate).
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that this proposal 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 applicable Exchange rules will require that customers receive appropriate disclosure before trading options in Ethereum Funds 
                    <SU>68</SU>
                    <FTREF/>
                     and will require that brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>69</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>68</SU>
                         
                        <E T="03">See</E>
                         Rules 9.1(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>69</SU>
                         
                        <E T="03">See</E>
                         Rule 9.3.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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 the Ethereum Fund options will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. The Rules that currently apply to the listing and trading of all Unit options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Ethereum Funds options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange. Also, and as stated above, the Exchange already lists options on other commodity-based Units (including Bitcoin-based).
                    <SU>70</SU>
                    <FTREF/>
                     Further, the Ethereum Funds would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other Unit for the Exchange to continue listing options on them.
                </P>
                <FTNT>
                    <P>
                        <SU>70</SU>
                         
                        <E T="03">See</E>
                         Rule 4.3, Interpretation and Policy .06(a)(4).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposal to list and trade options on Ethereum Funds 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 Ethereum Fund 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. The Exchange notes that listing and trading Ethereum Fund 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.</P>
                <P>
                    The Exchange believes that the proposed rule change may relieve any 
                    <PRTPAGE P="16246"/>
                    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 Ethereum Fund 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.
                </P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>71</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>72</SU>
                    <FTREF/>
                     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 
                    <SU>73</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>74</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>71</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>72</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>73</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>74</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has waived the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>75</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>76</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Ethereum Funds.
                    <SU>77</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Ethereum Funds, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Ethereum Funds. The proposal also establishes position and exercise limits for options on the Ethereum Funds and provides information regarding the surveillance procedures that will apply to Ethereum Fund options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Ethereum Fund options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>78</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>75</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>76</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>77</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025) (Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to Amend Exchange Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust) (SR-NYSEAMER-2025-45).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>78</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CBOE-2025-026 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CBOE-2025-026. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-CBOE-2025-026 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>79</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>79</SU>
                             17 CFR 200.30-3(a)(12), (59).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06518 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="16247"/>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102816; File No. SR-NYSEAMER-2025-23]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; NYSE American LLC; Notice of Filing and Immediate Effectiveness of Proposed Change To Amend Rules 904, Rule 915, and 916</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) 
                    <SU>1</SU>
                    <FTREF/>
                     of the Securities Exchange Act of 1934 (“Act”) 
                    <SU>2</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>3</SU>
                    <FTREF/>
                     notice is hereby given that, on April 9, 2025, NYSE American LLC (“NYSE American” 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 change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         15 U.S.C. 78a.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The Exchange proposes to amend Rules 904, Rule 915, and 916 to allow the Exchange to list and trade options on the iShares Ethereum Trust ETF and the Fidelity Ethereum Fund. The proposed rule change is available on the Exchange's website at 
                    <E T="03">www.nyse.com,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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 those 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 parts of such statements.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Rule 904 (Position Limits), Rule 915 (Criteria for Underlying Securities), and Rule 916 (Withdrawal of Approval of Underlying Securities) to allow the Exchange to list and trade options on the following exchange-traded products: the iShares Ethereum Trust ETF (“ETHA”) and the Fidelity Ethereum Fund (“FETH”) (each, an “Ether Fund” or collectively, the “Ether Funds”).
                    <SU>4</SU>
                    <FTREF/>
                     This is a competitive filing based on similar proposals submitted by Nasdaq ISE, LLC (“ISE”) and Cboe Exchange, Inc. (“Cboe”) and approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 915, Commentary .10(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 102798 (April 9, 2025) (SR-ISE-2024-35) (approving the listing and trading of options on ETHA); 102797 (April 9, 2025) (SR-Cboe-2024-036) (approving the listing and trading of options on FETH) (collectively, the “Ether ETP Options Approval Orders”).
                    </P>
                </FTNT>
                <P>
                    Rule 915 provides that, subject to certain other criteria set forth in the Rule, securities deemed appropriate for options trading include Exchange-Traded Fund Shares (or ETFs) as defined in Commentary .06, that represent certain types of interests 
                    <SU>6</SU>
                    <FTREF/>
                     and exchange-traded products (“ETPs”) structured as trusts that hold precious metals (which are deemed commodities).
                    <SU>7</SU>
                    <FTREF/>
                     Recently, the Exchange received approval from the Commission to list and trade options on specific funds that hold bitcoin (also deemed a commodity).
                    <SU>8</SU>
                    <FTREF/>
                     Like ETPs backed by precious metals and bitcoin (
                    <E T="03">i.e.,</E>
                     commodities), the Exchange proposes to allow options trading on the Ether Funds that hold ether—which is also deemed a commodity.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Rule 915, Commentary .06, which permits options trading on ETFs that are traded on a national securities exchange and are defined as an “NMS stock” in Rule 600(b)(55) [sic] of Regulation NMS, that 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 indexes, equity caps, collars and floors, swap agreements, forward contracts, repurchase agreements and reverse purchase 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 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); interests in a trust or similar entity 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 and pays the beneficial owner interest and other distributions on deposited non-U.S. currency, if any, declared and paid by the trust (“Currency Trust Shares”); 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 Units”); or represents an interest in a registered investment company (“Investment Company”) organized as an open-end management investment company or similar entity, that invests in a portfolio of securities selected by the Investment Company's investment adviser consistent with the Investment Company's investment objectives and policies, which is issued in a specified aggregate minimum number in return for a deposit of a specified portfolio of securities and/or a cash amount with a value equal to the next determined net asset value (“NAV”), and when aggregated in the same specified minimum number, may be redeemed at a holder's request, which holder will be paid a specified portfolio of securities and/or cash with a value equal to the next determined NAV (“Managed Fund Share”); provided that all of the conditions listed in Rules 915 and 916 are met.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Rule 915, Commentary .10 (permitting the listing and trading of options on shares of the following trusts: SPDR Gold Trust, the iShares COMEX Gold Trust the iShares Silver Trust, the ETFS Gold Trust, and the ETFS Silver Trust).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         On October 19 [sic], 2024, the Commission approved NYSE American's proposal to list and trade options on the Grayscale Bitcoin Trust (BTC) (“GBTC”), the Grayscale Bitcoin Mini Trust BTC (“BTC”), and the Bitwise Bitcoin ETF (“BITB”). 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 101386 (October 18, 2024), 89 FR 84960 (October 24, 2024) (SR-NYSEAMER-2024-49). 
                        <E T="03">See also</E>
                         Rule 915, Commentary .10(a) (permitting options trading on bitcoin-backed ETPs, including GBTC, BTC, and BITB).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 915, Commentary .10(a) (permitting the Exchange to list and trade options on shares of ETHA and FETH, pursuant to Rule 915 and 916).
                    </P>
                </FTNT>
                <P>
                    The Ether Funds are structured as trusts that hold ether. Like ETFs and ETPs currently deemed appropriate for options trading, the investment objective of each Ether Fund trust is for its shares to reflect the performance of ether (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to ether without the complexities of ether delivery. Each Ether Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of ether and are designed to track ether or the performance of the price of ether and offer access to the ether market.
                    <SU>10</SU>
                    <FTREF/>
                     The Ether Funds provide investors with cost-efficient alternatives that allow a level of participation in the ether market through the securities market.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <PRTPAGE P="16248"/>
                <P>
                    The Exchange believes each Ether Fund satisfies the Exchange's initial listing standards set forth in Commentary .01 to Rule 915.
                    <SU>11</SU>
                    <FTREF/>
                     The Exchange notes that the Ether Funds also satisfy the listing standard applied to ETFs traded on the Exchange that they be available for creation and redemption each business day as set forth in Commentary .06(a)(ii).
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         Commentary .01 to Rule 915 provides for guidelines to be used by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Commentary .06(a)(ii) requires that ETFs must be available for creation or redemption each business day from or through the issuer in cash or in kind at a price related to net asset value, and the issuer must be obligated to issue 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.
                    </P>
                </FTNT>
                <P>
                    First, each of the Ether Funds satisfy the criteria and guidelines set forth in Rule 915(a). Pursuant to Rule 915(a), a security 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.
                    <SU>13</SU>
                    <FTREF/>
                     Each of the Ether Funds is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>14</SU>
                    <FTREF/>
                     The Exchange believes each Ether Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Commentary .01 to Rule 915, subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>The Ether Funds had the following number of shares outstanding and corresponding market capitalization.</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,p7,7/7,i1" CDEF="s30,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Shares
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">
                            Market
                            <LI>capitalization</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHA (as of 10/22/24)</ENT>
                        <ENT>57,440,000</ENT>
                        <ENT>1,160,000,000</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">FETH (as of 12/23/24)</ENT>
                        <ENT>41,700,000</ENT>
                        <ENT>1,433,229,000</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As shown above, each of the Ether Funds had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to the Exchange's rules. The Exchange believes this demonstrates that each Ether Fund is characterized by a substantial number of outstanding shares.</P>
                <P>Further, the below table contains information regarding the number of beneficial holders of the Ether Funds.</P>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s30,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Beneficial
                            <LI>holders</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHA (as of 12/19/24)</ENT>
                        <ENT>93,352</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">FETH (as of 11/26/24)</ENT>
                        <ENT>38,170</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As this table shows, each Ether Fund has significantly more than 2,000 beneficial holders (approximately 46 and 19 times more, respectively), which is the minimum number of holders the Exchange generally requires for corporate stock to list options on that stock pursuant to the Exchanges [sic] rules. Therefore, the Exchange believes the shares of each Ether Fund are widely held.</P>
                <P>The Exchange also believes that shares of the Ether Funds are actively traded. Both Funds began trading on July 23, 2024. Regarding ETHA, since the inception of trading through December 14, 2024, the average daily volume was 5,302,533 shares and the average notional volume for this period is $127,825,276.00. For FETH, since the inception of trading through December 23, 2024, the average daily volume was 115,589,047 shares and the average notional volume for this period is $33,864,193. Even though the Ether Funds have been trading for less than a year, the trading volume for each Ether Fund is substantially higher than 2,400,000 shares (roughly 2 and 48 times that amount), which is the minimum 12-month volume the Exchange generally requires for a security to list options on that security. The Exchange believes this data demonstrates each Ether Fund is characterized by a substantial number of outstanding shares that are actively traded.</P>
                <P>
                    In addition to satisfying the Exchange's initial listing standards, options on Ether Funds will be subject to the Exchange's continued listing standards as set forth in Commentary .07 to Rule 916.
                    <SU>15</SU>
                     Pursuant to Commentary .07 to Rule 916, the Exchange will not open for trading any additional series of option contracts covering a fund traded on the Exchange if such fund ceases to be an “NMS stock” as provided for Commentary .01(5) to Rule 916 or the fund is halted from trading on its primary market.
                    <SU>16</SU>
                     Additionally, options on funds traded on the Exchange may be subject to the suspension of opening transactions as follows: (1) the fund no longer meets the terms of Commentary .01 to Rule 916 (
                    <E T="03">i.e.,</E>
                     the continued listing standards); (2) following the initial twelve-month period beginning upon the commencement of trading of the fund, there are fewer than 50 record and/or beneficial holders of the fund for 30 or more consecutive trading days; (3) the value of the underlying commodity 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 on the Exchange inadvisable.
                    <SU>17</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         The Exchange proposes to modify Commentary .11 to Rule 916 to include the Ether Funds in the list of ETPs deemed “Exchange-Traded Fund Shares” (or ETFs) for purposes of the continued listing standards set forth in Commentary .07 to Rule 916. 
                        <E T="03">See</E>
                         proposed Commentary .11 to Rule 916.
                    </P>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Commentary .07 to Rule 916.
                    </P>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    Options on each Ether Fund will be physically settled contracts with American-style exercise.
                    <SU>18</SU>
                    <FTREF/>
                     Consistent with Rule 903, which governs the opening of options series on a specific underlying security (including ETFs and ETPs), the Exchange will open at least one expiration month for options on each Ether Fund 
                    <SU>19</SU>
                    <FTREF/>
                     at the commencement of trading on the 
                    <PRTPAGE P="16249"/>
                    Exchange and may also list series of options on Ether Funds for trading on a weekly,
                    <SU>20</SU>
                    <FTREF/>
                     monthly,
                    <SU>21</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>22</SU>
                    <FTREF/>
                     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.
                    <SU>23</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Rule 902 (Rights and Obligations of Holders and Writers), which provides that the rights and obligations of holders and writers of option contracts of any class of options dealt in on the Exchange shall be as set forth in the Rules of the Clearing Corporation. 
                        <E T="03">See also</E>
                         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: 
                        <E T="03">https://www.theocc.com/getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/occrules.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         The monthly expirations are subject to certain listing criteria for underlying securities described within Rule 915. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Rule 903(d), 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. New series of options on an individual stock may be added until the beginning of the month in which the options contract will expire. 
                        <E T="03">See</E>
                         Rule 903, Commentary .04. Due to unusual market conditions, the Exchange, in its discretion, 
                        <PRTPAGE/>
                        may add a new series of options on an individual stock until the close of trading on the business day prior to expiration. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Rule 903(h).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Rule 903, Commentary .11.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 903, Commentary .09.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Rule 903, Commentary .03.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rule 903, Commentary .05(a), which governs strike prices of series of options on ETFs, the interval between strike prices of series of options on Ether Funds will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>24</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>25</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>26</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>27</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>28</SU>
                    <FTREF/>
                     Pursuant to Rule 960NY, where the price of a series of a Ether Fund 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.
                    <SU>29</SU>
                    <FTREF/>
                     Any and all new series of Ether Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 903 and 960NY, as applicable. Further, the Exchange notes that Rule 462, which governs margin requirements applicable to the trading of all options on the Exchange, including options on ETFs and ETPs, will also apply to the trading of Ether Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Rules 903(h) and Commentaries .09 and .11 to Rule 903, specifically set forth intervals between strike prices on such option series.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Rule 903, Commentary .06.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Rule 903, Commentary .13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Rule 903, Commentary .07(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         Rule 903, Commentary .12.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         If options on any of the Ether Funds are eligible to participate in the Penny Interval Program, the minimum increment of $0.01 below $3.00 and $0.50 above $3.00 would apply. 
                        <E T="03">See</E>
                         Rule 960NY(a)(3). See also Rule 960.1NY (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>
                    The Exchange may authorize for trading a FLEX option class on any equity security if it may authorize for trading a non-FLEX option class on that equity security pursuant to Rule 915, subject to specified exceptions.
                    <SU>30</SU>
                    <FTREF/>
                     At this time, the Exchange is not proposing to permit Ether Fund options to trade as FLEX options.
                    <SU>31</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         Rule 903G(a)(1). 
                        <E T="03">See generally</E>
                         Section 15 (Flexible Exchange (“FLEX”) Options).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         Rule 903G(a)(1) (providing that the Exchange may authorize FLEX trading of on any equity security that is eligible for non-FLEX trading under Rule 915 “except those set forth in Commentary .10(a) to Rule 915,” 
                        <E T="03">i.e.,</E>
                         the Ether Funds). The Exchange may submit a subsequent rule filing that would permit the Exchange to authorize FLEX trading of Ether Fund options, which filing may propose changes to existing FLEX option position limits for such options as appropriate.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Position and Exercise Limits</HD>
                <P>
                    Position and exercise limits for options, including options on Ether Funds, are determined pursuant to Rules 904 and 905, respectively. Position and exercise limits for options vary according to the number of outstanding shares and the trading volumes of the underlying security over the past six months, where the largest in capitalization and the most frequently traded funds 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 funds 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.
                    <SU>32</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         Commentary .07(a)-(d) to Rule 904. For an option to be eligible for the 50,000-contract limit, the security underlying the option must have most recent six-month trading volume of at least 20,000,000 shares, or most recent six-month trading volume of at least 15,000,000 shares and at least 40,000,000 shares currently outstanding. For an option to be eligible for the 75,000-contract limit, the underlying security must have most recent six-month trading volume of at least 40,000,000 shares, or most recent six-month trading volume of at least 30,000,000 shares and at least 120,000,000 shares currently outstanding. For an option to be eligible for the 200,000-contract limit, the underlying security must have most recent six-month trading volume of at least 80,000,000 shares, or most recent six-month trading volume of at least 60,000,000 shares and at least 240,000,000 shares currently outstanding. For an option to be eligible for the 250,000-contract limit, the security underlying the option must have most recent six-month trading volume of at least 100,000,000 shares, or most recent six-month trading volume of at least 75,000,000 shares and at least 300,000,000 shares currently outstanding. The 25,000-contract position limit applies to options on underlying securities that do not qualify for a higher contract limit. 
                        <E T="03">See</E>
                         Commentary .07(e) to Rule 904. In addition, Commentary .07(f) to Rule 904 establishes higher position limits for options on certain ETFs.
                    </P>
                </FTNT>
                <P>
                    Position limits are designed to limit the number of options contracts traded on the Exchange in an underlying security that an investor, acting alone or in concert with others directly or indirectly, may control. The purpose of position limits, which are set forth in Rule 904, is to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. Accordingly, position limits must balance concerns regarding mitigating potential manipulation and the cost of inhibiting potential hedging activity that investors may use for legitimate economic purposes. To achieve this balance, the Exchange proposes to set the position and exercise limits for the options on the Ether Funds at 25,000 contracts, a limit which has already been approved for options on ETPs that hold bitcoin.
                    <SU>33</SU>
                    <FTREF/>
                     Capping the position limit at 25,000 contracts, the lowest limit available in options, would address concerns related to manipulation and protection of investors as this number is conservative for the Ether Funds and therefore appropriate given their liquidity.
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 904, Commentary .07(f) (proposing a 25,000-contract position limit for Ether Fund options, the same limit that has been approved for options on bitcoin-backed ETPs as set forth in current Commentary .07(f)). The exercise limit for Ether Fund options will be the same as the position limit (
                        <E T="03">i.e.,</E>
                         25,000-contract). 
                        <E T="03">See</E>
                         Rule 905(a)(i).
                    </P>
                </FTNT>
                <P>
                    Based on the foregoing, the Exchange believes the proposal to list options on the Ether Funds with positions and exercise limits of 25,000 on the same side, the lowest position limit available in the options industry, is conservative and appropriate given the market capitalization, average daily volume, and high number of outstanding shares for each of the Ether Funds.
                    <SU>34</SU>
                    <FTREF/>
                     The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying Ether Funds as well as the ether market.
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         The Exchange may file a subsequent rule change to amend the position and exercise limit for options on any or all the Ether Funds based on additional data regarding trading activity, to continue to balance any concerns regarding manipulation. A higher position limit would allow institutional investors to utilize options on the Ether Funds for prudent risk management purposes.
                    </P>
                </FTNT>
                <P>
                    As described herein, options on Ether Funds will trade in the same manner as any other ETF or ETP options on the Exchange, except that the Ether Funds will not be eligible for FLEX option trading. The Exchange Rules that currently apply to the listing and trading of options on the Exchange, including, for example, Rules that govern listing criteria, expiration and exercise prices, minimum increments, margin requirements, customer accounts and trading halt procedures will apply to the listing and trading of Ether Funds 
                    <PRTPAGE P="16250"/>
                    on the Exchange in the same manner as they apply to all other ETFs and ETPs that are listed and traded on the Exchange, including the precious metal-backed commodity ETPs already deemed appropriate for options trading on the Exchange. Further, as described above, Exchange Rules regarding position and exercise limits will likewise apply to options on the Ether Funds except that, as proposed, the position and exercise limits will be set at 25,000 on the same side.
                </P>
                <P>The Exchange notes that options on Ether Funds would not be available for trading until The Options Clearing Corporation (“OCC”) represents to the Exchange that it is fully able to clear and settle such options. The Exchange has also analyzed its capacity and represents that it and The Options Price Reporting Authority (“OPRA”) have the necessary systems capacity to handle the additional traffic associated with the listing of options on Ether Funds. The Exchange believes any additional traffic that would be generated from the trading of options on Ether Funds would be manageable. The Exchange represents that Exchange members will not have a capacity issue as a result of this proposed rule change.</P>
                <P>
                    The Exchange represents that the same surveillance procedures applicable to all other options currently listed and traded on the Exchange will apply to options on Ether Funds, and that it has the necessary systems capacity to support the new option series. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options, as well as the proposed options on Ether Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ether Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that the Financial Industry Regulatory Authority (“FINRA”) conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the ISG Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by the Exchange's market surveillance staff, the Exchange would also be able to obtain information regarding trading in shares of the Ether Funds on other exchanges though ISG. Further, the Exchange has a Regulatory Services Agreement (“RSA”) with FINRA. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances.
                    <SU>35</SU>
                    <FTREF/>
                     The Exchange notes that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds.
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO. Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>The underlying shares of spot ether ETPs, including the Ether Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based exchange-traded products:</P>
                <EXTRACT>
                    <P>
                        Each Exchange has a comprehensive surveillance-sharing agreement with the [CME] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.
                        <SU>36</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937, 46938 (May 30, 2024) (File Nos. SR-NYSEARCA-2023-70; SR-NYSEARCA-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Ether-Based Commodity-Based Trust Shares and Trust Units) (“Ether ETP Approval Order”).
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that, given the consistently high correlation between the CME ether futures market and the spot ether market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of [the Ether ETPs].” 
                    <SU>37</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Ether Funds,
                    <SU>38</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds.
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR, at 46941.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on Ether Funds will be available via OPRA and major market data vendors.</P>
                <P>
                    The Exchange believes that offering options on Ether Funds will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of ether and hedging vehicle to meet their investment needs in connection with ether-related products and positions. The Exchange expects investors will transact in options on Ether Funds in the unregulated over-the-counter (“OTC”) options market,
                    <SU>39</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed 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 Ether Fund 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 Exchange notes that the ETPs that hold precious metal commodities on which the Exchange may already list and trade options are trusts structured in substantially the same manner as Ether Funds 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 
                    <PRTPAGE P="16251"/>
                    continued listing and trading of options on any ETFs or ETPs that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals) that it currently lists and trades on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         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.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposed rule change is consistent with Section 6(b) of the Act 
                    <SU>40</SU>
                    <FTREF/>
                     in general and furthers the objectives of Section 6(b)(5) of the Act 
                    <SU>41</SU>
                    <FTREF/>
                     in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanisms of a free and open market and a national market system, and, in general, to protect investors and the public interest.
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <P>In particular, the Exchange believes that the proposal to list and trade Ether Fund options 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 Ether Funds will provide investors with an opportunity to realize the benefits of utilizing options on an Ether Fund, including cost efficiencies and increased hedging strategies.</P>
                <P>
                    The Exchange believes that offering Ether Fund 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 ether and with ether-related products and positions. Additionally, the Exchange's offering of Ether Fund 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 ETPs,
                    <SU>42</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as Ether Funds and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     ether rather than precious metals) and for which the Exchange has not identified any issues with the continued listing and trading of commodity-backed ETP options it currently lists for trading.
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See</E>
                         Rule 915, Commentaries .10 (permitting the listing and trading of options on shares of ETPs that hold precious metals) and .10(a) (permitting the listing and trading of options on shares of ETPs that hold bitcoin).
                    </P>
                </FTNT>
                <P>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 the Ether Funds satisfy the initial listing standards and continued listing standards currently in the Exchange Rules applicable to options on all ETFs and ETPs, including ETPs that hold other commodities already deemed appropriate for options trading on the Exchange. Additionally, as demonstrated above, each Ether Fund is characterized by a substantial number of shares that are widely held and actively traded. Ether Fund options will trade in the same manner as any other ETF or ETP options—the same Exchange Rules that currently govern the listing and trading of options, including permissible expirations, strike prices, minimum increments, and margin requirements, will govern the listing and trading of options on Ether Funds in the same manner.</P>
                <P>
                    The Exchange believes the proposal to exclude Ether Fund options from eligibility for FLEX trading is consistent with the Act because it will permit the Exchange to continue to participate in ongoing discussions with the Commission regarding appropriate position limits for options on these Funds.
                    <SU>43</SU>
                    <FTREF/>
                     In addition, this proposal benefits investors and in public interest because adds clarity and transparency to Exchange rules making them easier to navigate and understand, which in turn removes impediments to and perfects the mechanism of a free and open market and a national market system.
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         The Exchange may submit a subsequent rule filing that would permit the Exchange to authorize for trading FLEX options on the Ether Funds (which filing may propose changes to existing FLEX option position limits for such options if appropriate).
                    </P>
                </FTNT>
                <P>
                    The proposed position and exercise limit for options on the Ether Funds is 25,000 contracts, which proposed limits were recently approved for ETPs that hold bitcoin.
                    <SU>44</SU>
                    <FTREF/>
                     These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given the Ether Funds' market capitalization, average daily volume, number of beneficial holders, and high number of outstanding shares. The proposed position and exercise limits are consistent with the Act as they addresses [sic] concerns related to manipulation and protection of investors because the position and exercise limits are extremely conservative and more than appropriate given the Ether Funds are actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Rule 904, Commentary .07(f) (providing that options on bitcoin-backed ETPs are subject to a 25,000-contract position limit) and Rule 905(a)(i) (providing that the exercise limit for Ether Fund options is the same as the position limit established per Rule 904).
                    </P>
                </FTNT>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Ether Fund options. 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 options, including Ether Fund options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ether Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ether Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the ISG under the ISG Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by the Exchange's market surveillance staff, the Exchange would also be able to obtain information regarding trading in shares of the Ether Funds on other exchanges though ISG. Further, the Exchange has an RSA with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances. The Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds.</P>
                <P>
                    The underlying shares of spot ether ETPs, including the Ether Funds, are also subject to safeguards related to addressing market abuse and 
                    <PRTPAGE P="16252"/>
                    manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>45</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME ether futures market and the spot ether market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>46</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Ether Funds,
                    <SU>47</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ether ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR 46941.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>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.</P>
                <P>
                    <E T="03">Intramarket Competition:</E>
                     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 Ether Fund options would need to satisfy the initial listing standards set forth in the Exchange Rules in the same manner as any other option on an ETF before the Exchange could list these options. Additionally, Ether Fund 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 Ether Funds. Also, and as stated above, the Exchange already lists options on other commodity-based ETPs.
                    <SU>48</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         Rule 915, Commentaries .10 (permitting the listing and trading of options on shares of ETPs that hold precious metals) and .10(a) (permitting the listing and trading of options on shares of ETPs that hold bitcoin).
                    </P>
                </FTNT>
                <P>
                    <E T="03">Intermarket Competition:</E>
                     The Exchange does not believe that the proposal to list and trade options on Ether Funds 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 Ether Fund 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. As noted herein, this filing based on similar proposals submitted by ISE and Cboe and approved by the Commission.
                    <SU>49</SU>
                    <FTREF/>
                     Additionally, other options exchanges are free to amend their listing rules, as applicable, to permit them to list and trade options on the Ether Funds. The Exchange notes that listing and trading Ether Fund 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.
                </P>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">See supra</E>
                         note 5, Ether ETP Options Approval Orders.
                    </P>
                </FTNT>
                <P>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 Ether Fund 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 ether prices and ether-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were solicited or received with respect to the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>50</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>51</SU>
                    <FTREF/>
                     Because the 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 prior to 30 days from the date on which it was filed, or such shorter time as the Commission may designate, the proposed rule change has become effective pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>52</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) 
                    <SU>53</SU>
                    <FTREF/>
                     thereunder.
                </P>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         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.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>54</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>55</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing of options on the Ether Funds.
                    <SU>56</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Ether Funds, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Ether Funds. The proposal also establishes position and exercise limits for options on the Ether Funds and provides information regarding the surveillance procedures that will apply to Ether Funds options. The Commission 
                    <PRTPAGE P="16253"/>
                    believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Ether Funds options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>57</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Options Approval Orders, 
                        <E T="03">supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-NYSEAMER-2025-23 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-NYSEAMER-2025-23. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-NYSEAMER-2025-23 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>58</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>58</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06494 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102845; File No. SR-PEARL-2025-16]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, To List and Trade Options on the Grayscale Ethereum Trust, the Grayscale Ethereum Mini Trust, and the Bitwise Ethereum ETF</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 11, 2025, MIAX PEARL, LLC (“MIAX Pearl”) filed with the Securities and Exchange Commission (“Commission”) a proposed rule change as described in Items I and II below, which Items have been prepared by MIAX Pearl. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities, to list and trade options on the Grayscale Ethereum Trust (the “Grayscale Fund” or “ETHE”), the Grayscale Ethereum Mini Trust (the “Grayscale Mini Fund” or “ETH”), and the Bitwise Ethereum ETF (the “Bitwise Fund” or “ETHW” and, collectively, the “Ethereum Funds” or “Funds”).</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://www.miaxglobal.com/markets/us-equities/pearl-equities/rule-filings,</E>
                     at MIAX Pearl's principal office, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>In its filing with the Commission, MIAX Pearl 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. MIAX Pearl has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities,
                    <SU>3</SU>
                    <FTREF/>
                     to allow the Exchange to list and trade options on the Ether Funds, designating them as appropriate for options trading on the Exchange.
                    <SU>4</SU>
                    <FTREF/>
                     This is a competitive filing based on a similar proposal submitted 
                    <PRTPAGE P="16254"/>
                    by NYSE American, LLC (“NYSE American”), which was approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange notes that its affiliate options exchanges, Miami International Securities Exchange, LLC (“MIAX”) and MIAX Sapphire, LLC (“MIAX Sapphire”), submitted (or will submit) substantively similar proposals. The Exchange notes that all the rules of Chapter III of MIAX, including MIAX Rules 307 and 309, are incorporated by reference into the MIAX Pearl and MIAX Sapphire rulebooks. The Exchange also notes that all of the rules of Chapter III of MIAX, including MIAX Rules 307 and 309, and the rules of Chapter IV of the MIAX, including MIAX Rule 402, are incorporated by reference into the MIAX Emerald, LLC (“MIAX Emerald”) rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; 
                        <PRTPAGE/>
                        SR-CboeBZX-2023-095; and SRCboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ether ETP Approval Order”); 
                        <E T="03">and</E>
                         100541 (July 17, 2024), 89 FR 59786 (July 23, 2024) (SR-NYSEArca-2024-44; and SR-NYSEArca-2024-53) (Order Granting Approval of Proposed Rule Changes To List and Trade Shares of the Grayscale Ethereum Mini Trust and ProShares Ethereum ETF).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025) (SR-NYSEAMER-2024-45)(Self-Regulatory Organizations; NYSE American LLC; Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to Amend Exchange Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust)(“NYSE American Ether Approval Order”).
                    </P>
                </FTNT>
                <P>
                    Exchange Rule 402(i) provides that, subject to certain other criteria set forth in the Rule, securities deemed appropriate for options trading include Exchange-Traded Fund Shares (or ETFs) as defined in Subparagraphs (1)-(5), including Exchange-Traded Fund Shares, that represent certain types of interests,
                    <SU>6</SU>
                    <FTREF/>
                     and exchange traded products (“ETPs”), structured as trusts that hold precious metals (which are deemed commodities).
                    <SU>7</SU>
                    <FTREF/>
                     Last year, the Exchange received approval from the Commission to list and trade options on specific funds that hold bitcoin (also deemed a commodity).
                    <SU>8</SU>
                    <FTREF/>
                     Like ETPs backed by precious metals and bitcoin (
                    <E T="03">i.e.,</E>
                     commodities), the Exchange proposes to allow options trading on the Ether Funds that hold ether—which is also deemed a commodity.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i), which permits options trading on exchange-traded funds (“ETFs”) that: (1) 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 (“Funds”), 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); (2) represent interests in a trust or similar entity that holds a specified non-U.S. currency or currencies deposited with the trust which when aggregated in some specified minimum number may be surrendered to the trust or similar entity 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”); (3) 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”); (4) are issued by the SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Silver ETF Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Palladium ETF Trust, the Aberdeen Standard Platinum ETF Trust, the Goldman Sachs Physical Gold ETF, the Sprott Physical Gold Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, the ARK 21 Shares Bitcoin ETF, the Fidelity Ethereum Fund, or iShares Ethereum Trust; or (5) represent an interest in a registered investment company (“Investment Company”) organized as an open-end management company or similar entity, that invests in a portfolio of securities selected by the Investment Company's investment adviser consistent with the Investment Company's investment objectives and policies, which is issued in a specified aggregate minimum number in return for a deposit of a specified portfolio of securities and/or a cash amount with a value equal to the next determined net asset value (“NAV”), and when aggregated in the same specified minimum number, may be redeemed at a holder's request, which holder will be paid a specified portfolio of securities and/or cash with a value equal to the next determined NAV (“Managed Fund Share”); provided that all of the conditions listed in (5)(i) and 5(ii) are met.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         On November 22, 2024, the Commission approved the Exchange's proposal to list and trade options on the Grayscale Bitcoin Trust (BTC), the Grayscale Bitcoin Mini Trust BTC, the Bitwise Bitcoin ETF, Fidelity Wise Origin Bitcoin Fund, and the ARK 21Shares Bitcoin ETF. 
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 101718 (November 22, 2024), 89 FR 94784 (November 29, 2024)(SR-PEARL-2024-53); 
                        <E T="03">and</E>
                         101719 (November 22, 2024), 89 FR 94812 (November 29, 2024)(SR-PEARL-2024-54).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 101701 (November 21, 2024), 89 FR 93672 (November 27, 2024) (SR-PEARL-2024-52) (Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange To Allow the Exchange To List and Trade Options on the iShares Bitcoin Trust); 101719 (November 22, 2024), 89 FR 94784 (November 29, 2024) (SR-PEARL-2024-53) (Notice Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange To Allow the Exchange To List and Trade Options on the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, and the Bitwise Bitcoin ETF); 101718 (November 22, 2024), 89 FR 94812 (November 29, 2024) (SR-PEARL-2024-54) (Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange To Allow the Exchange To List and Trade Options on the Fidelity Wise Origin Bitcoin Fund (the “Fidelity Fund”) and the ARK 21Shares Bitcoin ETF (the “ARK 21 Fund”)).
                    </P>
                </FTNT>
                <P>
                    The Ether Funds are structured as trusts that hold ether. Like ETFs and ETPs currently deemed appropriate for options trading, the investment objective of each Ether Fund trust is for its shares to reflect the performance of ether (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to ether without the complexities of ether delivery. Each Ether Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of ether and are designed to track ether or the performance of the price of ether and offer access to the ether market.
                    <SU>9</SU>
                    <FTREF/>
                     The Ether Funds provide investors with cost-efficient alternatives that allow a level of participation in the ether market through the securities market.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes each Ether Fund satisfies the Exchange's initial listing standards set forth in Exchange Rule 402(b).
                    <SU>10</SU>
                    <FTREF/>
                     The Exchange notes that the Ether Funds also satisfy the listing standard applied to ETFs traded on the Exchange that they be available for creation and redemption each business day as set forth in Exchange Rule 402(i)(5)(i)(B).
                    <SU>11</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Subparagraphs a. and b. of Exchange Rule 402 provide for guidelines to be used by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         Exchange Rule 402(i)(5)(i)(B) requires that ETFs 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.
                    </P>
                </FTNT>
                <PRTPAGE P="16255"/>
                <P>
                    First, each of the Ether Funds satisfy the criteria and guidelines set forth in Exchange Rule 402(a). Pursuant to Exchange Rule 402(a), a security on which options may be listed and traded on the Exchange must be 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.
                    <SU>12</SU>
                    <FTREF/>
                     Each of the Ether Funds is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>13</SU>
                    <FTREF/>
                     The Exchange believes each Ether Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Exchange Rule 402(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) 
                        <E T="03">and</E>
                         (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>
                    Pursuant to the data presented in the NYSE American Ether Approval Order,
                    <SU>14</SU>
                    <FTREF/>
                     as of November 29, 2024, the Ether Funds had the following number of shares outstanding (and corresponding market capitalization):
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s100,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Shares 
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">
                            Market
                            <LI>capitalization</LI>
                            <LI>(11/29/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>$5,425,852,635</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>1,547,003,157</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>430,886,200</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As shown above, each of the Ether Funds had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to Exchange Rule 402(b)(1).
                    <SU>15</SU>
                    <FTREF/>
                     The Exchange believes this demonstrates that each Ether Fund is characterized by a substantial number of outstanding shares.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         The Exchange notes that on November 19, 2024, ETH underwent a reverse stock split, reducing the number of shares outstanding—and increasing the share price—tenfold.
                    </P>
                </FTNT>
                <P>
                    Further, according to the NYSE American Ether Approval Order,
                    <SU>16</SU>
                    <FTREF/>
                     the below table contains information regarding the number of beneficial holders of the Ether Funds as of December 31, 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s25,10">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Beneficial
                            <LI>Holders</LI>
                            <LI>(as of</LI>
                            <LI>12/31/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>112,320</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>17,396</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>5,992</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As this table shows, each Ether Fund has significantly more than 2,000 beneficial holders (approximately 56, 9, and 3 times more, respectively), which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to pursuant to Exchange Rule 402(b)(2).
                    <SU>17</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the shares of each Ether Fund are widely held.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         The number of beneficial holders of ETH may have been impacted by the 10:1 reverse stock split, as investors with fewer than 10 shares would have received a cash payout.
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes that, based on trading volume since the Funds began trading on July 23, 2024, shares of the Ether Funds are actively traded. In particular, according to the NYSE American Ether Approval Order,
                    <SU>18</SU>
                    <FTREF/>
                     the table below sets forth the total trading volume (by shares and notional) from the inception of trading through either November 29, 2024 (for ETHE and ETH) or December 31, 2024 (for ETHW). In addition, the below table illustrates the average daily volume (“ADV”) over the 30-day period of either October 29, 2024—through November 29, 2024 (for ETHE and ETH) or November 29, 2024—through December 31, 2024 (for ETHW).
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31/24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,15,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Trading volume
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Trading volume
                            <LI>(notional $)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>427,312,540</ENT>
                        <ENT>$10,289,781,199</ENT>
                        <ENT>4,237,811</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>172,400,020</ENT>
                        <ENT>4,614,428,230</ENT>
                        <ENT>3,065,796</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>44,477,060</ENT>
                        <ENT>959,491,343</ENT>
                        <ENT>291,627</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As demonstrated above, even though the Ether Funds have been trading for less than one year, the trading volume for each Ether Fund is substantially higher than 2,400,000 shares (roughly 178, 72, and 16 times that amount), which is the minimum 12-month volume the Exchange generally requires for a security in order to list options on that security as set forth in Exchange Rule 402(b). The Exchange believes this data demonstrates that each Ether Fund is characterized by a substantial number of outstanding shares that are actively traded.</P>
                <P>
                    In addition to satisfying the Exchange's initial listing standards, options on the Ether Funds will be subject to the Exchange's continued listing standards as set forth in Exchange Rule 403(g).
                    <SU>20</SU>
                    <FTREF/>
                     Pursuant to Exchange Rule 403(g), the Exchange will not open for trading any additional series of option contracts covering a fund traded on the Exchange if such fund ceases to be an “NMS stock” as provided for Exchange Rule 402(b) or the fund is halted from trading on its primary market.
                    <SU>21</SU>
                    <FTREF/>
                     Additionally, options on funds traded on the Exchange may be subject to the suspension of opening transactions as follows: (1) the fund no longer meets the terms of Exchange Rule 403(b); (2) following the initial twelve-month period beginning upon the commencement of trading of the fund, there are fewer than 50 record and/or beneficial holders of the fund for 30 or more consecutive trading days; (3) the 
                    <PRTPAGE P="16256"/>
                    value of the underlying commodity 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 on the Exchange inadvisable.
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         The Exchange proposes to amend Exchange Rule 402(i)(4) to include the Ether Funds in the list of ETPs deemed “Exchange-Traded Fund Shares”—of ETFs—for purposes of the continued listing standards set forth in Exchange Rule 403(g). 
                        <E T="03">See</E>
                         proposed Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 403(g).
                    </P>
                </FTNT>
                <P>
                    Options on each Ether Fund will be physically settled contracts with American-style exercise.
                    <SU>22</SU>
                    <FTREF/>
                     Consistent with Exchange Rule 404, which governs the opening of options series on a specific underlying security (including ETFs and ETPs), the Exchange will open at least one expiration month for options on each Ether Fund 
                    <SU>23</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on Ether Funds for trading on a weekly,
                    <SU>24</SU>
                    <FTREF/>
                     monthly,
                    <SU>25</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>26</SU>
                    <FTREF/>
                     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.
                    <SU>27</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 401 (Rights and Obligations of Holders and Writers), which provides that the rights and obligations of holders and writers of option contracts of any class of options dealt in on the Exchange shall be as set forth in the Rules of the Options Clearing Corporation (“OCC”). 
                        <E T="03">See also</E>
                         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: 
                        <E T="03">https://www.theocc.com/getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/occrules.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404. The monthly expirations are subject to certain listing criteria for underlying securities described within Exchange Rule 402. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Exchange Rule 404(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 404(e), 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 406.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Exchange Rule 404(g), which governs strike prices of series of options on ETFs, the interval between strike prices of series of options on Ether Funds will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>28</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>29</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>30</SU>
                    <FTREF/>
                     and the $2.50 Strike Price Program.
                    <SU>31</SU>
                    <FTREF/>
                     Pursuant to Exchange Rule 510, where the price of a series of an Ether Fund 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.
                    <SU>32</SU>
                    <FTREF/>
                     Any and all new series of Ether Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Exchange Rules 404 and 510, as applicable. Further, the Exchange notes that Exchange Rule 1502, which governs margin requirements applicable to the trading of all options on the Exchange, including options on ETFs and ETPs, will also apply to the trading of Ether Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Exchange Rules 404, Interpretation and Policies .02, .03, and .13, specifically set forth intervals between strike prices on Short Term Option Series, Quarterly Options Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(f).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 510(a). If options on an Ether Fund are eligible to participate in the Penny Interval Program, the minimum increment of $0.01 below $3.00 and $0.50 above $3.00 would apply. 
                        <E T="03">See</E>
                         Exchange Rule 510(a)(3). 
                        <E T="03">See also</E>
                         Exchange Rule 510(c) (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>Position and exercise limits for options on ETFs, including options on Ether Funds, are determined pursuant to MIAX Rules 307 and 309, respectively, as incorporated by reference into the MIAX Pearl Rulebook. Position and exercise limits for ETF options vary according to the number of outstanding shares and the trading volumes of the underlying ETF over the past six months, where the largest in capitalization and the most frequently traded ETFs have an option position and exercise limit of 250,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market; and smaller capitalization ETFs have position and exercise limits of 200,000, 75,000, 50,000 or 25,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market. Notwithstanding the position limits in the Exchange's affiliate MIAX Rule 307(d) and exercise limits in the Exchange's affiliate MIAX Rule 309, the Exchange proposes the position and exercise limits for the options on the Ether Funds to be 25,000 contracts on the same side pursuant to proposed Interpretation and Policy. 01 to the Exchange's affiliate MIAX Rule 307 and Interpretation and Policy. 01 to the Exchange's affiliate MIAX Rule 309.</P>
                <P>Options on the Ether Funds will trade in the same manner as any other ETF or ETP options on the Exchange. The Exchange Rules that currently apply to the listing and trading of options on the Exchange, including, for example, Rules that govern listing criteria, expiration and exercise prices, minimum increments, margin requirements, customer accounts and trading halt procedures will apply to the listing and trading of Ether Funds on the Exchange in the same manner as they apply to all other ETFs and ETPs that are listed and traded on the Exchange, including the precious metal-backed commodity ETPs already deemed appropriate for options trading on the Exchange pursuant to Exchange Rule 404.</P>
                <STARS/>
                <P>The Exchange notes that options on Ether Funds would not be available for trading until The Options Clearing Corporation (“OCC”) represents to the Exchange that it is fully able to clear and settle such options. The Exchange has also analyzed its capacity and represents that it and The Options Price Reporting Authority (“OPRA”) have the necessary systems capacity to handle the additional traffic associated with the listing of options on Ether Funds. The Exchange believes any additional traffic that would be generated from the trading of options on Ether Funds would be manageable. The Exchange represents that Exchange members will not have a capacity issue as a result of this proposed rule change.</P>
                <P>
                    The Exchange represents that the same surveillance procedures applicable to all other options currently listed and traded on the Exchange will apply to options on Ether Funds, and that it has the necessary systems capacity to support the new option series. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ether Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ether Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it 
                    <PRTPAGE P="16257"/>
                    conducts, and that FINRA conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by the Exchange's market surveillance staff, the Exchange would also be able to obtain information regarding trading in shares of the Ether Funds on other exchanges though ISG. Further, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”). Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances.
                    <SU>33</SU>
                    <FTREF/>
                     The Exchange notes that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds.
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) 
                        <E T="03">and</E>
                         17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO. Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>The underlying shares of spot ether ETPs, including the Ether Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based ETPs,</P>
                <EXTRACT>
                    <FP>
                        [e]ach Exchange has a comprehensive surveillance sharing agreement with the [Chicago Mercantile Exchange (“CME”)] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ethereum futures market.
                        <SU>34</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>34</SU>
                             
                            <E T="03">See</E>
                             Ether ETP Approval Order, 89 FR at 46938.
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that, given the consistently high correlation between the CME ether futures market and the spot ether market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [ether ETPs].” 
                    <SU>35</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR at 46939.
                    </P>
                </FTNT>
                <P>
                    In light of surveillance measures related to both options and futures as well as the Ether Funds,
                    <SU>36</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds. Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ether Funds.
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order.
                    </P>
                </FTNT>
                <P>Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on the Ether Funds will be available via Options Price Reporting Authority (“OPRA”) and major market data vendors.</P>
                <P>
                    The Exchange believes that offering options on Ether Funds will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of ether and hedging vehicle to meet their investment needs in connection with Ether-related products and positions. The Exchange expects investors will transact in options on Ether Funds in the unregulated over-the-counter (“OTC”) options market,
                    <SU>37</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed 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 Ether Funds 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 Exchange notes that the ETPs that hold precious metal commodities on which the Exchange may already list and trade options are trusts structured in substantially the same manner as Ether Funds 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 options on any ETFs or ETPs that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals) that it currently lists and trades on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         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.
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that applicable Exchange rules will require that customers receive appropriate disclosure before trading options in Ether Funds.
                    <SU>38</SU>
                    <FTREF/>
                     Further, brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>39</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">See</E>
                         Exchange's affiliate MIAX Rules 1307(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See</E>
                         Exchange's affiliate MIAX Rule 1309.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>40</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>41</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>42</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    In particular, the Exchange believes that the proposal to list and trade 
                    <PRTPAGE P="16258"/>
                    options on the Ether Funds 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 Ether Funds will provide investors with a greater opportunity to realize the benefits of utilizing options on Ether Funds, including cost efficiencies and increased hedging strategies.
                </P>
                <P>
                    The Exchange believes that offering Ether Fund 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 ether and with ether-related products and positions. Additionally, the Exchange's offering of Ether Fund 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 ETPs,
                    <SU>43</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as Ether Funds and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     Ether rather than precious metals) and for which the Exchange has not identified any issues with the continued listing and trading of commodity-backed ETP options it currently lists for trading.
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>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 the Ether Funds 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. Additionally, as demonstrated above, each Ether Fund is characterized by a substantial number of shares that are widely held and actively traded. Ether Fund 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 options on ETFs, including permissible expirations, strike prices and minimum increments, and applicable position and exercise limits (including as proposed in the filing submitted by Exchange's affiliate, MIAX), and margin requirements, will govern the listing and trading of options on Ether Funds in the same manner.</P>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Ether Fund options. 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 options, including Ether Fund options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ether Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ether Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by the Exchange's market surveillance staff, the Exchange would also be able to obtain information regarding trading in shares of the Ether Funds on other exchanges though ISG. Further, the Exchange has a Regulatory Services Agreement with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds.</P>
                <P>
                    The underlying shares of spot ether ETPs, including the Ether Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based ETPs, “[e]ach Exchange has a comprehensive surveillance- sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>44</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME ethereum futures market and the spot ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>45</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Ether Funds,
                    <SU>46</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on ether ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR, at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR, at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2023-70), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2023-70/srnysearca202370-475871-1363474.pdf;</E>
                         Amendment No. 1 to Proposed Rule Change to List and Trade Shares of the Bitwise Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024-31), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-31/srnysearca202431-475891-1363514.pdf;</E>
                         and Amendment No.2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum Mini ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024-44), filed May 22, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-44/srnysearca202444-476231-1364174.pdf.</E>
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that this proposal 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 applicable Exchange rules will require that customers receive appropriate disclosure before trading 
                    <PRTPAGE P="16259"/>
                    options in Ether Funds 
                    <SU>47</SU>
                    <FTREF/>
                     and will require that brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>48</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         Exchange's affiliate MIAX Rules 1307(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         Exchange's affiliate MIAX Rule 1309.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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. In this regard and as indicated above, the Exchange notes that the rule change is being proposed as a competitive response to the filing submitted by NYSE American.
                    <SU>49</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    <E T="03">Intramarket Competition:</E>
                     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 options on the Ether Funds 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, Ether Fund options will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. 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 Ether Funds. Also, and as stated above, the Exchange already lists options on other commodity-based ETPs.
                    <SU>50</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i).
                    </P>
                </FTNT>
                <P>
                    <E T="03">Intermarket Competition:</E>
                     The Exchange does not believe that the proposal to list and trade options on Ether Funds 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 the Ether Funds 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 the Ether Funds. The Exchange notes that listing and trading Ether Funds 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.
                </P>
                <P>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 the Ether Funds 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 ether prices and ether-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>Written comments were neither solicited nor received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>51</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>52</SU>
                    <FTREF/>
                     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 
                    <SU>53</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>54</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>55</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>56</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Ethereum Funds.
                    <SU>57</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Ethereum Funds, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Ethereum Funds. The proposal also establishes position and exercise limits for options on the Ethereum Funds and provides information regarding the surveillance procedures that will apply to Ethereum Fund options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Ethereum Fund options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>58</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025) (Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to Amend Exchange Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust) (SR-NYSEAMER-2025-45).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>
                    Interested persons are invited to submit written data, views and arguments concerning the foregoing, including whether the proposed rule 
                    <PRTPAGE P="16260"/>
                    change is consistent with the Act. Comments may be submitted by any of the following methods:
                </P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-PEARL-2025-16 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments </HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-PEARL-2025-16. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-PEARL-2025-16 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>59</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>59</SU>
                             17 CFR 200.30-3(a)(12), (59).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06519 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102836; File No. SR-CboeBZX-2025-055]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules To List and Trade Options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 10, 2025, Cboe BZX Exchange, Inc. (“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 Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe BZX Exchange, Inc. (the “Exchange” or “BZX”) proposes to amend its Rules to allow the Exchange to list and trade options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF. The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Rule 19.3 regarding the criteria for underlying securities. Specifically, the Exchange proposes to amend Rule 19.3(i)(4) to allow the Exchange to list and trade options on shares or other securities (“Fund Shares”) that are principally traded on a national securities exchange and are defined as an “NMS stock” under Rule 600 of Regulation NMS and that represent interests in the Grayscale Ethereum Trust ETF (the “Grayscale Fund”), the Grayscale Ethereum Mini Trust ETF (the “Grayscale Mini Fund”), and the Bitwise Ethereum ETF (the “Bitwise Fund” and, collectively, the “Ethereum Funds”).
                    <SU>5</SU>
                    <FTREF/>
                     This is a competitive filing based on a similar proposal submitted by NYSE American, LLC (“NYSE American”), which was recently approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>6</SU>
                    <FTREF/>
                     Current Rule 19.3(i) provides that, subject to certain other criteria set forth in that Rule, securities deemed appropriate for options trading include Fund Shares that represent certain types of interests,
                    <SU>7</SU>
                    <FTREF/>
                     including interests in certain specific trusts that 
                    <PRTPAGE P="16261"/>
                    hold financial instruments, money market instruments, precious metals (which are deemed commodities), or Bitcoin (which is another crypto currency and deemed a commodity). In addition, Rule 19.3(i) requires that Fund Shares meet the criteria and standards set forth in Rule 19.3(a) and (b),
                    <SU>8</SU>
                    <FTREF/>
                     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 Fund Shares 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.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; and SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ethereum ETP Approval Order”); and 100541 (July 17, 2024), 89 FR 59786 (July 23, 2024) (SR-NYSEArca-2024-44; and SR-NYSEArca-2024-53) (Order Granting Approval of Proposed Rule Changes To List and Trade Shares of the Grayscale Ethereum Mini Trust and ProShares Ethereum ETF).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 99306 (August 7, 2024), 89 FR 65957 (August 13, 2024) (SR-NYSEAMER-2024-45), as amended by Amendment No. 1 (February 5, 2025) [sic]; and Securities Exchange Act Release No. 102799 (April 9, 2025) (“NYSE American Approval”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i), which permits options trading on Fund Shares that (1) represent interests in registered investment companies (or series thereof) organized as open-end management investment companies, unit investment trusts or similar entities, and that hold portfolios of securities comprising or otherwise based on or representing 
                        <PRTPAGE/>
                        investments in indexes or portfolios of securities (or that hold securities in one or more other registered investment companies that themselves hold such portfolios of securities) (“Funds ”) and/or financial instruments including, but not limited to, stock index futures contracts, options on futures, options on securities and indexes, 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”) constituting or otherwise based on or representing an investment in an index or portfolio of securities and/or Financial Instruments and Money Market Instruments, or (2) 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 (3) represent interests in a trust or similar entity that holds a specified non- U.S. currency or currencies 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 (4) represent interests in the SPDR Gold Trust or are issued by the iShares COMEX Gold Trust or iShares Silver Trust, the Aberdeen Standard Physical Silver Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Physical Palladium Trust, the Aberdeen Standard Physical Platinum Trust, the Sprott Physical Gold Trust, the Goldman Sachs Physical Gold ETF, or the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Rule 19.3(a) and (b) sets forth the criteria that underlying securities must satisfy for option contracts on those underlying securities to be eligible for listing and trading on the Exchange.
                    </P>
                </FTNT>
                <P>
                    The Ethereum Funds are Ethereum-backed commodity ETFs structured as trusts. Similar to any Fund Share currently deemed appropriate for options trading under Rule 19.3(i), the investment objective of each Ethereum Fund is for its shares to reflect the performance of Ethereum (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to Ethereum without the complexities of Ethereum delivery. As is the case for Fund Shares currently deemed appropriate for options trading, a Ethereum Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of Ethereum and are designed to track Ethereum or the performance of the price of Ethereum and offer access to the Ethereum market.
                    <SU>9</SU>
                    <FTREF/>
                     The Ethereum Funds provide investors with cost-efficient alternatives that allow a level of participation in the Ethereum market through the securities market. The Ethereum Funds are similar to the Bitcoin Funds, except that those funds hold Bitcoin (another cryptocurrency) rather than Ethereum, which are already eligible for options trading on the Exchange (
                    <E T="03">i.e.,</E>
                     the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF).
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange's initial listing standards for Fund Shares on which options may be listed and traded on the Exchange will apply to the Ethereum Funds. Pursuant to Rule 19.3(a), a security (which includes a Fund Share) on which options may be listed and traded on the Exchange must be registered (with the Commission) and be an NMS stock (as defined in Rule 600 of Regulation NMS under the Securities Exchange Act of 1934, as amended (the “Act”)), and be characterized by a substantial number of outstanding shares that are widely held and actively traded.
                    <SU>10</SU>
                    <FTREF/>
                     Additionally, Rule 19.3(i)(1) requires that Fund Shares either (1) meet the criteria and standards set forth in Rule 19.3(a) and (b),
                    <SU>11</SU>
                    <FTREF/>
                     or (2) are available for creation or redemption each business day in cash or in kind from the investment company, commodity pool or other entity at a price related to net asset value, and the investment company, commodity pool or other entity is obligated to provide that Fund Shares may be created even if some or all of the securities and/or cash required to be deposited have not been received by the Fund, the unit investment trust or the management investment company, provided the authorized creation participant has undertaken to deliver the securities and/or cash as soon as possible and such undertaking is secured by the delivery and maintenance of collateral consisting of cash or cash equivalents satisfactory to the Fund, all as described in the Fund's or unit trust's prospectus. Each Ethereum Fund satisfies Rule 19.3(i)(1)(B), as each is subject to this creation and redemption process.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 19.3(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         Rule 19.3(a) and (b) sets forth the criteria an underlying security must meet for the Exchange to be able to list options on the underlying.
                    </P>
                </FTNT>
                <P>
                    While not required by the Rules for purposes of options listings, the Exchange believes the Ethereum Funds satisfy the criteria and guidelines set forth in Rule 19.3(a) and (b). Pursuant to Rule 19.3(a), a security (which includes a Fund Share) 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.
                    <SU>12</SU>
                    <FTREF/>
                     Each of the Ethereum Funds is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>13</SU>
                    <FTREF/>
                     Further, the Exchange believes each Ethereum Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 19.3(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>
                    With respect to the Grayscale Fund, the Grayscale Mini Fund, and the Bitwise Fund, the Exchange reviewed the data presented by NYSE American in its filing with respect to shares outstanding (and corresponding market capitalization), number of beneficial holders, and trading volume. As of November 29, 2024, the Ethereum Funds had the following number of shares outstanding (and corresponding market capitalization):
                    <PRTPAGE P="16262"/>
                </P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s100,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Shares
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">
                            Market value
                            <LI>(11/29/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>$5,425,852,635</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>1,547,003,157</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>430,886,200</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As shown above, each of the Ethereum Funds had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to Rule 19.3(b).
                    <SU>14</SU>
                    <FTREF/>
                     The Exchange believes this demonstrates that each Ethereum Fund is characterized by a substantial number of outstanding shares. Further, the below table contains information regarding the number of beneficial holders of the Ethereum Funds as of December 31, 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         The Exchange notes that on November 19, 2024, the Grayscale Mini Fund underwent a reverse stock split, reducing the number of shares outstanding—and increasing the share price—tenfold.
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s25,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Beneficial
                            <LI>holders</LI>
                            <LI>(as of</LI>
                            <LI>12/31/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>112,320</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>17,396</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>5,992</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As this table shows, each Ethereum Fund has significantly more than 2,000 beneficial holders (approximately 56, 9, and 3 times more, respectively), which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to pursuant to Rule 19.3(b).
                    <SU>15</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the shares of each Ethereum Fund are widely held.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         The number of beneficial holders of the Grayscale Mini Fund may have been impacted by the 10:1 reverse stock split, as investors with fewer than 10 shares would have received a cash payout. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes that, based on trading volume since the Ethereum Funds began trading on July 23, 2024, shares of the Ethereum Funds are actively traded. In particular, the table below sets forth the total trading volume (by shares and notional) from the inception of trading through either November 29, 2024 (for the Grayscale Fund and the Grayscale Mini Fund) or December 31, 2024 (for the Bitwise Fund). In addition, the below table illustrates the average daily volume (“ADV”) over the 30-day period of either October 29, 2024—through November 29, 2024 (for the Grayscale Fund and the Grayscale Mini Fund) or November 29, 2024—through December 31, 2024 (for the Bitwise Fund).
                    <SU>16</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31/24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,15,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Trading volume
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Trading volume
                            <LI>(notional $)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>427,312,540</ENT>
                        <ENT>$10,289,781,199</ENT>
                        <ENT>4,237,811</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>172,400,020</ENT>
                        <ENT>4,614,428,230</ENT>
                        <ENT>3,065,796</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>44,477,060</ENT>
                        <ENT>959,491,343</ENT>
                        <ENT>291,627</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As demonstrated above, even though the Ethereum Funds have been trading for less than one year, the trading volume for each Ethereum Fund is substantially higher than 2,400,000 shares (roughly 178, 72, and 16 times that amount), which is the minimum 12-month volume the Exchange generally requires for a security in order to list options on that security as set forth in Rule 19.3(b). The Exchange believes this data demonstrates each Ethereum Fund is characterized by a substantial number of outstanding shares that are actively traded.</P>
                <P>Options on the Ethereum Funds will be subject to the Exchange's continued listing standards set forth in Rule 19.4(g) for Fund Shares deemed appropriate for options trading pursuant to Rule 19.3(i). Specifically, 19.4(g) provides that Fund Shares that were initially approved for options trading pursuant to Rule 19.3 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 Fund Shares if the security ceases to be an NMS stock (see Rule 19.4(b)(4)). Additionally, the Exchange will not open for trading any additional series of option contracts of the class covering Fund Shares in any of the following circumstances: (1) in the case of options covering Fund Shares approved for trading under Rule 19.3(i)(4)(A), in accordance with the terms of Rule 19.4(b)(1), (2) and (3); (2) in the case of options covering Fund Shares approved pursuant to Rule 19.3(i)(4)(B), following the initial 12-month period beginning upon the commencement of trading in the Fund Shares on a national securities exchange and are defined as NMS stock under Rule 600 of Regulation NMS, there were fewer than 50 record and/or beneficial holders of such Fund Shares for 30 consecutive days; (3) the value of the index, non-U.S. currency, 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 or Money Market Instruments, or portfolio of securities on which the 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.</P>
                <PRTPAGE P="16263"/>
                <P>
                    Options on each Ethereum Fund will be physically settled contracts with American-style exercise.
                    <SU>17</SU>
                    <FTREF/>
                     Consistent with current Rule 19.6, which governs the opening of options series on a specific underlying security (including Fund Shares), the Exchange will open at least one expiration month for options on Ethereum Funds 
                    <SU>18</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on any Ethereum Fund for trading on a weekly,
                    <SU>19</SU>
                    <FTREF/>
                     monthly,
                    <SU>20</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>21</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) that expire from 12 to 39 months from the time they are listed.
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Rule 19.2, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">and</E>
                         Equity Options Product Specifications January 3, 2024), available at Equity Options Specifications (cboe.com); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6(b). The monthly expirations are subject to certain listing criteria for underlying securities described within Rule 19.3. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Rule 19.6(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. 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .05.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .08.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 19.8.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rule 19.6, Interpretation and Policy .01, which governs strike prices of series of options on Fund Shares, the interval of strikes prices for series of options on Ethereum Funds will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>23</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>24</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>25</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>26</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>27</SU>
                    <FTREF/>
                     Pursuant to Rule 21.5, where the price of a series of an Ethereum Fund 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.
                    <SU>28</SU>
                    <FTREF/>
                     Any and all new series of Ethereum Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 19.6 and 21.5, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Rule 19.6, Interpretations and Policies .05, .08, and .04 specifically sets forth intervals between strike prices on Quarterly Options Series, Short Term Option Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .06.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6(d)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         If options on an Ethereum Fund 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. 
                        <E T="03">See</E>
                         Rule 21.5(e) (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>
                    Ethereum Fund options will trade in the same manner as any other Fund Share options on the Exchange. The Exchange Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Ethereum Funds options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange, including the precious-metal backed commodity Fund Shares and the Bitcoin Funds already deemed appropriate for options trading on the Exchange pursuant to current Rule 19.3(i).
                    <SU>29</SU>
                    <FTREF/>
                     Position and exercise limits for options on ETFs, including options on Ethereum Funds, are determined pursuant to Rules 18.7 and 18.9.
                    <SU>30</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See, e.g.,</E>
                         SPDR Gold Trust, iShares COMEX Gold Trust or iShares Silver Trust, the Aberdeen Standard Physical Silver Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Physical Palladium Trust, the Aberdeen Standard Physical Platinum Trust, the Sprott Physical Gold Trust, the Goldman Sachs Physical Gold ETF or the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         Rule 18.7(a)(1) provides that no Options Member shall make, for any account in which it has any interest or for the account of any Customer, an opening transaction on any exchange if the Options Member has reason to believe that as a result of such transaction the Options Member or its Customer would, acting alone or in concert with others, directly or indirectly, exceed the applicable position limit fixed by Cboe Exchange, Inc. (“Cboe Options”). Rule 18.9(a)(1) provides that no Options Member shall exercise, for any account in which it has an interest or for the account of any Customer, a long position in any options contract where such Options Member or Customer, acting alone or in concert with others, directly or indirectly, has or will have exceeded the applicable exercise limit fixed from time to time by Cboe Options for any options contract traded on BZX Options and Cboe Options. 
                        <E T="03">See also</E>
                         Cboe Options Rules 8.30 and 8.42.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rules 18.7 and 18.9, the position and exercise limits, respectively, for Ethereum Fund options will be 25,000 same side option contracts.
                    <SU>31</SU>
                    <FTREF/>
                     The Exchange believes these proposed position and exercise limits are reasonable and appropriate. In considering the appropriate position and exercise limits for the Ethereum Funds, the Exchange reviewed the data presented by NYSE American in its filing with respect to the Bitwise Fund, the Grayscale Fund and the Grayscale Mini Fund.
                    <SU>32</SU>
                    <FTREF/>
                     NYSE American aggregated market capitalization, volume, and shares outstanding data of the Ethereum Funds and compared that data to those of other ETFs, and compared the proposed position limit of the Ethereum Funds to the position limits of the options overlying those other ETFs. The Exchange reviewed NYSE American's data that demonstrated that each of these three Ethereum Funds would easily qualify for much higher position limits available to other ETFs and ETPs pursuant to the criterion in Cboe Options Rule 8.30, Interpretation and Policy .02 (which governs position limits on the Exchange pursuant to Rule 18.7).
                    <SU>33</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         Rule 18.7(a)(1) provides that no Options Member shall make, for any account in which it has any interest or for the account of any Customer, an opening transaction on any exchange if the Options Member has reason to believe that as a result of such transaction the Options Member or its Customer would, acting alone or in concert with others, directly or indirectly, exceed the applicable position limit fixed by Cboe Exchange, Inc. (“Cboe Options”). Cboe Options currently has a nearly identical rule filing pending with the Commission to amend Cboe Options Rule 8.30, Interpretation and Policy .10 (and Cboe Options Rule 8.42) to establish a position and exercise limit for Ethereum Fund options of 25,000 (“Cboe Ethereum Fund Proposal”). If the Commission approves the Cboe Ethereum Fund Proposal, the position and exercise limits in that filing would then apply to the Exchange.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         NYSE American Approval.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         Cboe Options Rule 8.30, Interpretation and Policy .02; Exchange Rule 18.7.
                    </P>
                </FTNT>
                <P>
                    Cboe Options Rule 8.30, Interpretation and Policy .02 sets forth position (and exercise) limits for options, which vary according to the number of shares outstanding and the amount of trading in underlying during the most recent six-month period.
                    <SU>34</SU>
                    <FTREF/>
                     As demonstrated below, the trading volume in each Fund for the time periods specified in the following table is 
                    <PRTPAGE P="16264"/>
                    sufficient to qualify each Fund for position limits in excess of the proposed 25,000-contract limit.
                    <SU>35</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">See</E>
                         Cboe Options Rule 8.30, Interpretation and Policy .02; Exchange Rule 18.7.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31,24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s25,18">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">Total volume</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>427,312,540</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>(7/23/24-11/29/24)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>172,400,020</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>(7/23/24-11/29/24)</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>44,477,060</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="22"> </ENT>
                        <ENT>(7/23/24-12/31/24)</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    Based on this trading volume during these time periods, the trading volume in the Grayscale Fund and the Grayscale Mini Fund set forth in the NYSE American Approval well exceeds the requisite minimum of 100,000,000 shares necessary to qualify for the 250,000-contract position and exercise limits.
                    <SU>36</SU>
                    <FTREF/>
                     By comparison, the underlying of other options with six-month trading volume less than the volumes in the table above are eligible for position and exercise limits of at least 250,000.
                    <SU>37</SU>
                    <FTREF/>
                     Further, the trading volume during this time period for the Bitwise Fund set forth in the NYSE American Approval well exceeded the requisite minimum of 40,000,000 shares necessary to qualify for the 75,000-contract position (and exercise) limit, which is three times the proposed 25,000- contract limit.
                    <SU>38</SU>
                    <FTREF/>
                     Finally, the proposed 25,000-contract position limit is the default for options that do not otherwise qualify for a higher limit and is therefore an adequate limit for each Ethereum Fund.
                    <SU>39</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         Cboe Options Rule 8.30, Interpretation and Policy .02(e) states that to be eligible for the 250,000 option contract limit, either the most recent six-month trading volume of the underlying security must have totaled at least 100,000,000 shares; or the most recent six-month trading volume of the underlying security must have totaled at least 75,000,000 shares and the underlying security must have at least 300,000,000 currently outstanding.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">See https://www.theocc.com/Market-Data/Market-Data-Reports/Series-and-Trading-Data/Series-Search</E>
                         (including the following symbols that have a position limit of 250,000: GLD, IAU, SLV, SIVR, SGOL).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         Cboe Options Rule 8.30, Interpretation and Policy .02(c) states that to be eligible for the 75,000 option contract limit, either the most recent six-month trading volume of the underlying security must have totaled at least 40,000,000 shares; or the most recent six-month trading volume of the underlying security must have totaled at least 30,000,000 shares and the underlying security must have at least 120,000,000 currently outstanding.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         Cboe Options Rule 8.30, Interpretation and Policy .02(a) states that the 25,000 option contract limit applies to those options having an underlying security that does not meet the requirements for a higher option contract limit.
                    </P>
                </FTNT>
                <P>Second, with respect to the outstanding shares of these three Ethereum Funds, the Exchange reviewed NYSE American's data regarding the outstanding shares of each of these Ethereum Funds. NYSE American performed an exercise to demonstrate that if a market participant held the maximum number of contracts possible pursuant to the proposed position and exercise limits (25,000 contracts), the equivalent shares represented by the proposed position and exercise limits (2,500,000 shares) would represent the following approximate percentage of outstanding shares as of November 29, 2024:</P>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,12,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Proposed
                            <LI>position/</LI>
                            <LI>exercise</LI>
                            <LI>limits in</LI>
                            <LI>equivalent</LI>
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Outstanding
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage
                            <LI>of</LI>
                            <LI>outstanding</LI>
                            <LI>shares</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>1.4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>5.5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>15.1</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As this table demonstrates, if a market participant held the maximum permissible options positions in one of the Ethereum Fund options and exercised all of them at the same time, that market participant would control a small percentage of the outstanding shares of the underlying Ethereum Fund. For example, as noted above, a position limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the applicable Ethereum Fund (if that market participant exercised all its options). NYSE American used the number of shares outstanding for each Ethereum Fund as of November 29, 2024, and calculated the approximate number of market participants that could hold the maximum of 25,000 same side positions in each Ethereum Fund that would equate to the number of shares outstanding of that Ethereum Fund:</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s100,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Outstanding
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>market</LI>
                            <LI>participants</LI>
                            <LI>with 25,000</LI>
                            <LI>same side</LI>
                            <LI>positions</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>71</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>18</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>7</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    This means if 71 market participants had 25,000 same side positions in options on the Grayscale Fund, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. Similarly, this means if 18 market participants had 25,000 same side positions in options on the Grayscale Mini Fund, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. Finally, this means if 7 market participants had 25,000 same side positions in options on the Bitwise Fund, each of them would have to simultaneously exercise 
                    <PRTPAGE P="16265"/>
                    all of those options to create a scenario that may put the underlying security under stress. The Exchange believes it is highly unlikely for this to occur; however, even if such event did occur, the Exchange would not expect any of the Ethereum Fund to be under stress because such an event would merely induce the creation of more shares through the trust's creation and redemption process.
                </P>
                <P>
                    NYSE American also performed an exercise to compare the size of the proposed position limit to the market capitalization of the Ethereum market given that the issuer of each of these three Ethereum Funds may create and redeem shares that represent an interest in Ethereum. NYSE American took the global supply of Ethereum, which was 120.44 million and the price of one Ethereum, which was approximately $3,593.49,
                    <SU>40</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $439.78 billion. Consider the proposed position and exercise limit of 25,000 option contracts for each Ethereum Fund option. A position and exercise limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the Grayscale Fund, Grayscale Mini Fund, and Bitwise Fund, as applicable (if that market participant exercised all its options). NYSE American considered the share price of each Ethereum Fund on November 29, 2024 and calculated the value of 2,500,000 shares of the Ethereum Fund at that price, and the approximate percentage of that value of the size of the Ethereum market:
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See https://finance.yahoo.com/quote/ETH-USD/history.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,12,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Share price
                            <LI>($)</LI>
                        </CHED>
                        <CHED H="1">
                            Value of
                            <LI>2,500,000</LI>
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage
                            <LI>of ethereum</LI>
                            <LI>market</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>30.15</ENT>
                        <ENT>75,250,000</ENT>
                        <ENT>0.017</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>33.84</ENT>
                        <ENT>84,600,000</ENT>
                        <ENT>0.020</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>25.80</ENT>
                        <ENT>64,500,000</ENT>
                        <ENT>0.015</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Therefore, if a market participant with the maximum 25,000 same side contracts in options on the Grayscale Fund, the Grayscale Mini Fund, or the Bitwise Fund exercised all positions at one time, such an event would have no practical impact on the Ethereum market.</P>
                <P>The Exchange also reviewed NYSE American's data regarding the market capitalization of each of these three Ethereum Funds relative to the market capitalization of the entire Ethereum market, as of November 29, 2024:</P>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,15,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1">Ethereum/shares outstanding</CHED>
                        <CHED H="1">
                            Market value
                            <LI>($)</LI>
                        </CHED>
                        <CHED H="1">
                            % of Total
                            <LI>ethereum market</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Total Ethereum Market</ENT>
                        <ENT>120,440,000</ENT>
                        <ENT>432,799,935,600</ENT>
                        <ENT>100</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>5,425,852,635</ENT>
                        <ENT>1.25</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>1,547,003,157</ENT>
                        <ENT>0.36</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>430,886,200</ENT>
                        <ENT>0.10</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As this data gathered by NYSE American demonstrates, the Ethereum Funds collectively represent approximately 1.71% of the global supply of Ethereum (120,440,000).
                    <SU>41</SU>
                    <FTREF/>
                     Based on the $30.15 price of a Grayscale Fund share on November 29, 2024, a market participant could have redeemed one Ethereum for approximately 119 Grayscale Fund shares. Another 14,354,890,070 Grayscale Fund shares could be created before the supply of Ethereum was exhausted. As a result, 5,742 market participants would have to simultaneously exercise 25,000 same side positions in Grayscale Fund options to receive shares of the Grayscale Fund holding the entire global supply of Ethereum. Similarly, based on the $33.84 price of a Grayscale Mini Fund share on November 29, 2024, a market participant could have redeemed one Ethereum for approximately 106 Grayscale Mini Fund shares. Another 12,789,596,206 Grayscale Mini Fund shares could be created before the supply of Ethereum was exhausted. As a result, 5,116 market participants would have to simultaneously exercise 25,000 same side positions in Grayscale Mini Fund options to receive shares of Grayscale Mini Fund holding the entire global supply of Ethereum. Similarly, based on the $25.80 price of a Bitwise Fund share on November 29, 2024, a market participant could have redeemed one Ethereum for approximately 139 Bitwise Fund shares. Another 16,775,191,302 Bitwise Fund shares could be created before the supply of Ethereum was exhausted. As a result, 6,710 market participants would have to simultaneously exercise 25,000 same side positions in Bitwise Fund options to receive shares of Bitwise Fund holding the entire global supply of Ethereum. Unlike the Ethereum Funds, the number of shares that corporations may issue is limited. However, like corporations, which authorize additional shares, repurchase shares, or split their shares, the Ethereum Funds may create, redeem, or split shares in response to demand. The supply of Ethereum is larger than the available supply of most securities.
                    <SU>42</SU>
                    <FTREF/>
                     Given the significant unlikelihood of any of these events ever occurring, the Exchange does not believe options on the Ethereum Funds should be subject to position and exercise limits even lower than those proposed (which are already equal to the lowest available limit for equity options in the industry) to protect the supply of Ethereum.
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         The market capitalization of ethereum would rank in the top 20 among securities. See 
                        <E T="03">https://companiesmarketcap.com/usa/largest-companies-in-the-usa-by-market-cap/.</E>
                    </P>
                </FTNT>
                <P>
                    NYSE American compared the proposed position limits to the position limit of CME Ethereum futures. The Chicago Mercantile Exchange (“CME”) imposes a position limit of 8,000 futures (for the initial spot month) on its ethereum futures contract.
                    <SU>43</SU>
                    <FTREF/>
                     On 
                    <PRTPAGE P="16266"/>
                    November 29, 2024, CME Jan 25 Ethereum Futures settled at $3,629.69. A position of 8,000 CME Ethereum futures, therefore, would have a notional value of $1,451,876,000. The following table shows the share price of each Ethereum Fund on November 29, 2024, and the approximate number of option contracts that equates to that notional value:
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 349 (description of CME ether futures) and Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices. Each CME 
                        <PRTPAGE/>
                        ether futures contract is valued at fifty ethers as defined by the CME CF Ether Reference Rate (“ERR”). 
                        <E T="03">See</E>
                         CME Rulebook Chapter 349.
                    </P>
                </FTNT>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,9,9">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Share price
                            <LI>($)</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>option</LI>
                            <LI>contracts</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>30.15</ENT>
                        <ENT>481,551</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>33.84</ENT>
                        <ENT>429,041</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>25.80</ENT>
                        <ENT>562,743</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The approximate number of option contracts for each Ethereum Fund that would equate to the notional value of CME Ethereum futures is significantly higher than the proposed limit of 25,000 options contract for each Ethereum Fund option. The fact that many options ultimately expire out-of-the-money and thus are not exercised for shares of the underlying, while the delta of an Ethereum future is 1, further demonstrates how conservative the proposed limits of 25,000 options contracts are for the Ethereum Fund options.</P>
                <P>
                    The Exchange notes, again, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>44</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>45</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. Considering CME's position limits on futures for Ethereum, the Exchange believes that that the proposed same side position limits are more than appropriate for the Ethereum options.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Consistent with its position regarding the irrelevance of bitcoin supply to position limits for options on bitcoin ETPs, the Exchange likewise believes the available supply of Ethereum is not relevant to the determination of position and exercise limits for Ethereum Fund options.
                    <SU>46</SU>
                    <FTREF/>
                     Position and exercise limits are not a tool that should be used to address a potential limited supply of the underlying of an underlying. Position and exercise limits do not limit the total number of options that may be held, but rather they limit the number of positions a single customer may hold or exercise at one time.
                    <SU>47</SU>
                    <FTREF/>
                     “Since the inception of standardized options trading, the options exchanges have had rules imposing limits on the aggregate number of options contracts that a member or customer could hold or exercise.” 
                    <SU>48</SU>
                    <FTREF/>
                     Position and exercise limit rules are intended “to prevent the establishment of options positions that can be used or might create incentives to manipulate or disrupt the underlying market so as to benefit the options position. In particular, position and exercise limits are designed to minimize the potential for mini-manipulations and for corners or squeezes of the underlying market. In addition, such limits serve to reduce the possibility for disruption of the options market itself, especially in illiquid options classes.” 
                    <SU>49</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         The Exchange is unaware of any proposed rule change related to position and exercise limits for any equity option (including commodity ETF options) for which the Commission required consideration of whether the available supply of an underlying (whether it be a corporate stock or an ETF) or the contents of an ETF (commodity or otherwise) should be considered when an exchange proposed to establish those limits. 
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 57894 (May 30, 2008), 73 FR 32061 (June 5, 2008) (SR-CBOE-2005-11) (approval order in which the Commission stated that the “listing and trading of Gold Trust Options will be subject to the exchanges' rules pertaining to position and exercise limits and margin”). The Exchange notes when the Commission approved this filing, the position limits in Rule 8.30 were the same as they are today. For reference, the current position and exercise limits for options on SPDR Gold Shares ETF (“GLD”) and options on iShares Silver Trust (“SLV”) are 250,000 contracts, or 10 times that proposed position and exercise limit for the Ethereum Fund options.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         For example, suppose an option has a position limit of 25,000 option contracts and there are a total of 10 investors trading that option. If all 10 investors max out their positions, that would result in 250,000 option contracts outstanding at that time. However, suppose 10 more investors decide to begin trading that option and also max out their positions. This would result in 500,000 option contracts outstanding at that time. An increase in the number of investors could cause an increase in outstanding options even if position limits remain unchanged.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange notes that a Registration Statement on Form S-1 was filed with the Commission for each Ethereum Fund, each of which described the supply of Ethereum as being unlimited.
                    <SU>50</SU>
                    <FTREF/>
                     Each Registration Statement permits an unlimited number of shares of the applicable Ethereum Fund to be created. Further, the Commission approved proposed rule changes that permitted the listing and trading of shares of each Ethereum Fund, which approval did not comment on the sufficient supply of Ethereum or address whether there was a risk that permitting an unlimited number of shares for a Ethereum Fund would impact the supply of ether.
                    <SU>51</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the Commission had ample time and opportunity to consider whether the supply of ethereum was sufficient to permit the creation of unlimited Ethereum Fund shares, and does not believe considering this supply with respect to the establishment of position and exercise limits is appropriate given its lack of relevance to the purpose of position and exercise limits. However, given the significant size of the Ethereum supply, the proposed positions limits are more than sufficient to protect investors and the market.
                </P>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Grayscale Fund Form S-1 Registration Statement, at p. 77, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2020455/000119312524106957/d756153ds1.htm;</E>
                         Grayscale Mini Fund Amendment No. 5 to Form S-1 Registration Statement, at p. 79, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2020455/000119312524181081/d756153ds1a.htm;</E>
                         and Bitwise Fund Form S-1 Registration Statement 1, at p. 17, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2013744/000199937124007581/bitwise-s1a_061824.htm</E>
                         (“Ethereum Funds Reg. Stmts.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>
                    All of the above information demonstrates that the proposed position and exercise limits for the Ethereum Fund options are more than reasonable and appropriate. The trading volume, ADV, and outstanding shares of each Ethereum Fund demonstrate that these funds are actively traded and widely held, and proposed position and exercise limits are well below those of other ETFs with similar market characteristics. The proposed position and exercise limits are the lowest position and exercise limits available for equity options in the industry, are extremely conservative, and are more than appropriate given each Ethereum Fund's market capitalization and ADV. 
                    <PRTPAGE P="16267"/>
                    The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying Ethereum Funds as well as the Ethereum market.
                    <SU>52</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to options on the Ethereum Funds that it applies to the Exchange's other options products, including options on the Bitcoin Funds.
                    <SU>53</SU>
                    <FTREF/>
                     The Exchange's market surveillance staff would have access to the surveillances it conducts, as well as that FINRA conducts on its behalf, as well as that conducted by Cboe BYX Exchange, Inc., Cboe EDGX Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe Exchange, Inc.
                    <SU>54</SU>
                    <FTREF/>
                     with respect to the Ethereum Funds and would review activity in the underlying Ethereum Funds when conducting surveillances for market abuse or manipulation in the options on the Ethereum Funds. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining information from its affiliated markets, the Exchange would be able to obtain information regarding trading in shares of the Ethereum Funds from their primary listing markets and from other markets that trade shares of the Ethereum Funds through ISG. In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”) for certain market surveillance, investigation and examinations functions. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate amongst themselves and FINRA responsibilities to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>55</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         The surveillance program includes surveillance patterns for price and volume movements as well as patterns for potential manipulation (
                        <E T="03">e.g.,</E>
                         spoofing and marking the close).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         Cboe BYX Exchange, Inc., Cboe EDGX Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe Exchange, Inc. are affiliated markets of the Exchange.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         Section 19(g)(1) of the Act, among other things, requires every self-regulatory organization (“SRO”) registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>
                    The underlying shares of spot Ethereum exchange traded products (“ETPs”), including the Ethereum Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the [CME] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME Ether futures market.” 
                    <SU>56</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>57</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Ethereum Funds,
                    <SU>58</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ethereum Funds. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ethereum ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, at 46938 (footnotes excluded).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, at 46941 (footnote excluded).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on Ethereum Funds will be available via OPRA and major market data vendors.</P>
                <P>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 Ethereum Funds up to the number of expirations currently permissible under the Rules.</P>
                <P>
                    Ethereum Fund options will trade in the same manner as any other Fund Share options on the Exchange. The Exchange Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Ethereum Funds options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange, including the precious-metal backed commodity Fund Shares and the Bitcoin Funds already deemed appropriate for options trading on the Exchange pursuant to current Rule 19.3(i).
                    <SU>59</SU>
                    <FTREF/>
                     Position and exercise limits for options on ETFs, including options on Ethereum Funds, are determined pursuant to Rules 18.7 and 18.9.
                    <SU>60</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         
                        <E T="03">See, e.g.,</E>
                         SPDR Gold Trust, iShares COMEX Gold Trust or iShares Silver Trust, the Aberdeen Standard Physical Silver Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Physical Palladium Trust, the Aberdeen Standard Physical Platinum Trust, the Sprott Physical Gold Trust, the Goldman Sachs Physical Gold ETF or the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         Rule 18.7(a)(1) provides that no Options Member shall make, for any account in which it has any interest or for the account of any Customer, an opening transaction on any exchange if the Options Member has reason to believe that as a result of such transaction the Options Member or its Customer would, acting alone or in concert with others, directly or indirectly, exceed the applicable position limit fixed by Cboe Exchange, Inc. (“Cboe Options”). 
                        <E T="03">See also</E>
                         Cboe Options Rules 8.30 and 8.42.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that offering options on Ethereum Funds will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the 
                    <PRTPAGE P="16268"/>
                    price of Ethereum and hedging vehicle to meet their investment needs in connection with Ethereum -related products and positions. The Exchange expects investors will transact in options on Ethereum Funds in the unregulated over-the-counter (“OTC”) options market,
                    <SU>61</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed options, including (1) enhanced efficiency in initiating and closing out positions; (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 Ethereum Fund 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 Fund Shares 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 Ethereum Funds 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 Fund Share options, including Fund Shares that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals and Bitcoin) that it currently lists and trades on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         The Exchange understands from customers that investors have historically transacted in options on Fund Shares in the OTC options market if such options were not available for trading in a listed environment.
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that applicable Exchange rules will require that customers receive appropriate disclosure before trading options in Ethereum Funds.
                    <SU>62</SU>
                    <FTREF/>
                     Further, brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>63</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         
                        <E T="03">See</E>
                         Rules 26.2(b)) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         
                        <E T="03">See</E>
                         Rule 26.4.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>64</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>65</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>66</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>66</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>In particular, the Exchange believes that the proposal to list and trade options on the Ethereum Funds 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 the Ethereum Funds will provide investors with a greater opportunity to realize the benefits of utilizing options on an ETF based on spot Ethereum, including cost efficiencies and increased hedging strategies.</P>
                <P>The Exchange believes that offering options on competitively priced ETFs based on spot Ethereum will benefit investors by providing them with additional, relatively lower-cost risk management tools, allowing them to manage, more easily, their positions and associated risks in their portfolios in connection with exposure to spot Ethereum. Today, the Exchange lists options on other commodity (including Ethereum) ETFs structured as a trust, which essentially offer the same objectives and benefits to investors, and for which the Exchange has not identified any issues with the continued listing and trading of options on those ETFs.</P>
                <P>The Exchange also believes the proposal to permit options on the Ethereum Funds will remove impediments to and perfect the mechanism of a free and open market and a national market system, because options on the Ethereum Funds will comply with current Exchange Rules as discussed herein. Options on the Ethereum Funds must satisfy the initial listing standards and continued listing standards currently in the Rules, applicable to options on all ETFs, including options on other commodity ETFs already deemed appropriate for options trading on the Exchange pursuant to Rule 19.3(i). Additionally, as demonstrated above, the Ethereum Funds are characterized by a substantial number of shares that are widely held and actively traded. Further, Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits, and margin requirements, will govern the listing and trading of options on Ethereum Funds.</P>
                <P>
                    The Exchange believes the proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits for options on each of the Ethereum Funds is 25,000 contracts. These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given each Ethereum Fund's market capitalization, ADV, and high number of outstanding shares. The proposed position limit, and exercise limit, is consistent with the Act as it addresses concerns related to manipulation and protection of investors because, as demonstrated above, the position limit (and exercise limit) is extremely conservative and more than appropriate given the Ethereum Funds are actively traded. In support of the proposed position and exercise limits for options on the Ethereum Funds of 25,000 contracts, the Exchange is citing the in depth analysis NYSE American did in their filing. As noted above, in NYSE American Approval, NYSE American considered the: (1) applicable Ethereum Fund's market capitalization and ADV, and proposed position limit in relation to other securities; (2) market capitalization of the entire Ethereum market in terms of exercise risk and availability of deliverables; (3) proposed position limit by comparing it to position limits for derivative products regulated by the CFTC; and (4) supply of Ethereum. Based on the Exchange's review of these analyses, the Exchange believes that the setting position and exercise limits for options on each of the Ethereum Funds is 25,000 contracts is more than appropriate. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the 
                    <PRTPAGE P="16269"/>
                    prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying as well as the Ethereum market.
                    <SU>67</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>67</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Ethereum Fund options. As discussed above, 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 Fund Share options, including Ethereum Fund options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ethereum Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ethereum Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Ethereum Funds and, as appropriate, would review activity in the underlying Ethereum Funds when conducting surveillances for market abuse or manipulation in the options on the Ethereum Funds. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition, the Exchange has a Regulatory Services Agreement with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ethereum Funds.</P>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Ethereum Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>68</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME ethereum futures market and the spot ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>69</SU>
                    <FTREF/>
                     In light of the foregoing, the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ethereum Funds. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ethereum ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>68</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR, at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>69</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46941.
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that this proposal 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 applicable Exchange rules will require that customers receive appropriate disclosure before trading options in Ethereum Funds 
                    <SU>70</SU>
                    <FTREF/>
                     and will require that brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>71</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>70</SU>
                         
                        <E T="03">See</E>
                         Rules 26.2(b)) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>71</SU>
                         
                        <E T="03">See</E>
                         Rule 26.4.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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 Ethereum Fund options will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. The Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of the Ethereum Fund options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange. Also, and as stated above, the Exchange already lists options on other commodity-based Fund Shares (including Bitcoin-based).
                    <SU>72</SU>
                    <FTREF/>
                     Further, the Ethereum Fund would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other Fund Share for the Exchange to continue listing options on them.
                </P>
                <FTNT>
                    <P>
                        <SU>72</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposal to list and trade options on the Ethereum Fund 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 the Ethereum Fund 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. The Exchange notes that listing and trading Ethereum Fund 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.</P>
                <P>
                    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 Ethereum Fund 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 
                    <PRTPAGE P="16270"/>
                    Ethereum prices and Ethereum-related products and positions on a listed options exchange.
                </P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>73</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>74</SU>
                    <FTREF/>
                     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 
                    <SU>75</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>76</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>73</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>74</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>75</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>76</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has waived the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>77</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>78</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Ethereum Funds.
                    <SU>79</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Ethereum Funds, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Ethereum Funds. The proposal also establishes position and exercise limits for options on the Ethereum Funds and provides information regarding the surveillance procedures that will apply to Ethereum Fund options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Ethereum Fund options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>80</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>77</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>78</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>79</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025) (Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to Amend Exchange Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust) (SR-NYSEAMER-2025-45).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>80</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeBZX-2025-055 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeBZX-2025-055. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-CboeBZX-2025-055 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>81</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>81</SU>
                             17 CFR 200.30-3(a)(12), (59).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06513 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102822; File No. SR-BX-2025-08]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Nasdaq BX, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules To Allow the Exchange To List Options on the iShares Ethereum Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that April 9, 2025, Nasdaq BX, Inc. (“BX” or “Exchange”) filed with the Securities 
                    <PRTPAGE P="16271"/>
                    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 Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend Options 9, Section 13, Position Limits, and Section 15, Exercise Limits, to limit the position limits for options on the iShares Ethereum Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://listingcenter.nasdaq.com/rulebook/bx/rulefilings,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>The Exchange proposes to amend Options 9, Section 13, Position Limits, and Options 9, Section 15, Exercise Limits, to limit the position limits for options on the iShares Ethereum Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust, (collectively “Ether Trusts”).</P>
                <P>
                    Recently, Nasdaq ISE, LLC (“ISE”) received approval to list options on iShares Ethereum Trust, Cboe Exchange, Inc. (“Cboe”) received approval to list options on the Fidelity Ethereum Fund, and NYSE American LLC (“NYSE American”) received approval to list options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust (collectively, “Ether Trusts”).
                    <SU>5</SU>
                    <FTREF/>
                     ISE filed a rule change to list and trade options on the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 102798 (April 9, 2025) (SR-ISE-2024-35) (not yet noticed); 102797 (April 9, 2025) (SR-Cboe-2024-036) (not yet published); 102799 (April 9, 2025), (not yet published) (SR-NYSEAMER-2024-45).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         SR-ISE-2024-11 [sic] (not yet noticed).
                    </P>
                </FTNT>
                <P>BX's Options 4 Rules were amended by the ISE rule changes to list options on the Ether Trusts, as those Rules are incorporated by reference to ISE's Options 4 Rules, so BX has the ability to list the options on the Ether Trusts. The Ether Approval Orders stated that the position and exercise limits for each of the Ether Trusts shall be 25,000 contracts. At this time, the Exchange proposes to amend BX Options 9, Section 13, Position Limits, and Options 9, Section 15, Exercise Limits, to note that options on each Ether Trust shall have position and exercise limits of 25,000 contracts to mirror the Ether Approval Orders.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
                    <SU>7</SU>
                    <FTREF/>
                     in general, and furthers the objectives of Section 6(b)(5) of the Act,
                    <SU>8</SU>
                    <FTREF/>
                     in particular, in that it is designed to promote just and equitable principles of trade, 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.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         15 U.S.C. 78f(b)
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <P>
                    The Exchange's proposal to amend Options 9, Section 13, Position Limits, and Options 9, Section 15, Exercise Limits, to provide that the position and exercise limits for options on each of the Ether Trusts shall be 25,000 contracts is consistent with the Act as it will conform BX's options position and exercise limits for each of the Ether Trusts with ISE's options position and exercise limits on these same Ether Trusts to align those limits.
                    <SU>9</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The Exchange believes that other exchanges will adopt position and exercise limits of 25,000 contracts for options on each of the Ether Trusts. All Nasdaq affiliated markets have filed to adopt a 25,000 contract position and exercise limit for the Ether Trusts.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>The proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.</P>
                <P>
                    Amending Options 9, Sections 13 and 15 to provide that the position and exercise limits for options on each of the Ether Trusts shall be 25,000 contracts does not impose an undue burden on competition as the position and exercise limits will apply to all trading for options on the Ether Trusts trading on the Exchange as well as those trading on other exchanges that file a similar proposal.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         All Nasdaq affiliated markets are filing to adopt a 25,000 contract position and exercise limit for options on the Ether Trusts.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were either solicited or received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 
                    <SU>11</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>12</SU>
                    <FTREF/>
                     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 
                    <SU>13</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) 
                    <SU>14</SU>
                    <FTREF/>
                     thereunder.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>15</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>16</SU>
                    <FTREF/>
                     the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the 
                    <PRTPAGE P="16272"/>
                    Commission waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission previously approved the listing of options on iShares Ethereum Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.
                    <SU>17</SU>
                    <FTREF/>
                     As noted above, BX's Options 4 Rules were amended by an ISE rule change 
                    <SU>18</SU>
                    <FTREF/>
                     as those Rules are incorporated by reference to ISE's Options 4 Rules, so BX has the ability to list the options on the Ether Trusts. This proposal establishes position and exercise limits for options on the Ether Trusts. The Commission believes that waiver of the operative delay could benefit investors by assuring that trading in Ether Trust options are subject to the same position and exercise limits in place on other exchanges. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         17 CFR 240.19b-4(f)(6)(iii). 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102797 (April 9, 2025), (SR-Cboe-2024-036) (Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on Shares of the Fidelity Ethereum Fund) 
                        <E T="03">See also</E>
                         Securities Exchange Act Release No. 102798 (April 9, 2025), (SR-ISE-2024-35) (Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on the iShares Ethereum Trust). 
                        <E T="03">See also</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025), (SR-NYSEAMER-2024-45) (Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to Amend Exchange Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         SR-ISE-2025-11.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-BX-2025-08 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-BX-2025-08. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-BX-2025-08 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>20</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>20</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06500 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>Release No. 34-102846; File No. SR-MIAX-2025-21]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits To Allow the Exchange to List and Trade Options on the Grayscale Ethereum Trust, the Grayscale Ethereum Mini Trust, and the Bitwise Ethereum ETF</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 11, 2025, Miami International Securities Exchange, LLC (“Exchange”) filed with the Securities and Exchange Commission (“Commission”) a 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.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits, to list and trade options on the Grayscale Ethereum Trust (the “Grayscale Fund” or “ETHE”), the Grayscale Ethereum Mini Trust (the “Grayscale Mini Fund” or “ETH”), and the Bitwise Ethereum ETF (the “Bitwise Fund” or “ETHW” and, collectively, the “Ether Funds” or “Funds”).</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings,</E>
                     at MIAX's principal office, and 
                    <PRTPAGE P="16273"/>
                    at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3"> 1.   Purpose </HD>
                <P>
                    The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits,
                    <SU>3</SU>
                    <FTREF/>
                     to allow the Exchange to list and trade options on the Ether Funds, designating them as appropriate for options trading on the Exchange.
                    <SU>4</SU>
                    <FTREF/>
                     This is a competitive filing based on a similar proposal submitted by NYSE American, LLC (“NYSE American”), which was approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange notes that its affiliate options exchanges, MIAX PEARL, LLC (“MIAX Pearl”) and MIAX Sapphire, LLC (“MIAX Sapphire”), submitted (or will submit) substantively similar proposals. The Exchange notes that all the rules of Chapter III of MIAX, including Exchange Rules 307 and 309, are incorporated by reference into the MIAX Pearl and MIAX Sapphire rulebooks. The Exchange also notes that all of the rules of Chapter III of MIAX, including Exchange Rules 307 and 309, and the rules of Chapter IV of MIAX, including Exchange Rule 402, are incorporated by reference into the MIAX Emerald, LLC (“MIAX Emerald”) rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; and SRCboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ether ETP Approval Order”); 
                        <E T="03">and</E>
                         100541 (July 17, 2024), 89 FR 59786 (July 23, 2024) (SR-NYSEArca-2024-44; and SR-NYSEArca-2024-53) (Order Granting Approval of Proposed Rule Changes To List and Trade Shares of the Grayscale Ethereum Mini Trust and ProShares Ethereum ETF).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025) (SR-NYSEAMER-2024-45)(Self-Regulatory Organizations; NYSE American LLC; Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to Amend Exchange Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust)(“NYSE American Ether Approval Order”).
                    </P>
                </FTNT>
                <P>
                    Exchange Rule 402(i) provides that, subject to certain other criteria set forth in the Rule, securities deemed appropriate for options trading include Exchange-Traded Fund Shares (or ETFs) as defined in Subparagraphs (1)-(5), including Exchange-Traded Fund Shares that represent certain types of interests, and exchange traded products (“ETPs”), structured as trusts that hold precious metals (which are deemed commodities).
                    <SU>6</SU>
                    <FTREF/>
                     Last year, the Exchange received approval from the Commission to list and trade options on specific funds that hold bitcoin (also deemed a commodity).
                    <SU>7</SU>
                    <FTREF/>
                     Like ETPs backed by precious metals and bitcoin (
                    <E T="03">i.e.,</E>
                     commodities), the Exchange proposes to allow options trading on the Ether Funds that hold ether—which is also deemed a commodity.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i), which permits options trading on exchange-traded funds that: (1) 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 (“Funds”), 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); (2) represent interests in a trust or similar entity that holds a specified non-U.S. currency or currencies deposited with the trust which when aggregated in some specified minimum number may be surrendered to the trust or similar entity 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”); (3) 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”); (4) are issued by the SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Silver ETF Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Palladium ETF Trust, the Aberdeen Standard Platinum ETF Trust, the Goldman Sachs Physical Gold ETF, the Sprott Physical Gold Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, the ARK 21 Shares Bitcoin ETF, the Fidelity Ethereum Fund, or iShares Ethereum Trust; or (5) represent an interest in a registered investment company (“Investment Company”) organized as an open-end management company or similar entity, that invests in a portfolio of securities selected by the Investment Company's investment adviser consistent with the Investment Company's investment objectives and policies, which is issued in a specified aggregate minimum number in return for a deposit of a specified portfolio of securities and/or a cash amount with a value equal to the next determined net asset value (“NAV”), and when aggregated in the same specified minimum number, may be redeemed at a holder's request, which holder will be paid a specified portfolio of securities and/or cash with a value equal to the next determined NAV (“Managed Fund Share”); provided that all of the conditions listed in (5)(i) and 5(ii) are met.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 101698 (November 21, 2024), 89 FR 93802 (November 27, 2024) (SR-MIAX-2024-40) (Self-Regulatory Organizations; MIAX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits To Allow the Exchange To List and Trade Options on the iShares Bitcoin Trust); 101716 November 22, 2024), 89 FR 94856 (November 29, 2024) (SR-MIAX-2024-42) (Self-Regulatory Organizations; MIAX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits To Allow the Exchange To List and Trade Options on the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, and the Bitwise Bitcoin ETF) (“BTC Approval Order”); 101717 (November 22, 2024), 89 FR 94828 (November 29, 2024) (SR-MIAX-2024-43) (Self-Regulatory Organizations; MIAX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits To Allow the Exchange To List and Trade Options on the Fidelity Wise Origin Bitcoin Fund (the “Fidelity Fund”) and the ARK 21Shares Bitcoin ETF (the “ARK 21 Fund”)).
                    </P>
                </FTNT>
                <P>
                    The Ether Funds are structured as trusts that hold ether. Like ETFs and ETPs currently deemed appropriate for options trading, the investment objective of each Ether Fund trust is for its shares to reflect the performance of ether (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to ether without the complexities of ether delivery. Each Ether Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of ether and are designed to track ether or the performance of the price of ether and offer access to the ether market.
                    <SU>8</SU>
                    <FTREF/>
                     The Ether Funds provide investors with cost-efficient alternatives that allow a level of participation in the ether market through the securities market.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes each Ether Fund satisfies the Exchange's initial listing standards set forth in Exchange 
                    <PRTPAGE P="16274"/>
                    Rule 402(b).
                    <SU>9</SU>
                    <FTREF/>
                     The Exchange notes that the Ether Funds also satisfy the listing standards applied to ETFs traded on the Exchange that they be available for creation and redemption each business day as set forth in Exchange Rule 402(i)(5)(i)(B).
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Subparagraphs a. and b. of Exchange Rule 402 provide for guidelines to be used by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Exchange Rule 402(i)(5)(i)(B) requires that ETFs 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.
                    </P>
                </FTNT>
                <P>
                    First, each of the Ether Funds satisfy the criteria and guidelines set forth in Exchange Rule 402(a). Pursuant to Exchange Rule 402(a), a security on which options may be listed and traded on the Exchange must be 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.
                    <SU>11</SU>
                    <FTREF/>
                     Each of the Ether Funds is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>12</SU>
                    <FTREF/>
                     The Exchange believes each Ether Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Exchange Rule 402(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) 
                        <E T="03">and</E>
                         (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>
                    Pursuant to the data presented in the NYSE American Ether Approval Order,
                    <SU>13</SU>
                    <FTREF/>
                     as of November 29, 2024, the Ether Funds had the following number of shares outstanding (and corresponding market capitalization):
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s100,12,20">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Shares 
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">Market capitalization (11/29/24)</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>$5,425,852,635 </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>1,547,003,157</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>430,886,200 </ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As shown above, each of the Ether Funds had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to Exchange Rule 402(b)(1).
                    <SU>14</SU>
                    <FTREF/>
                     The Exchange believes this demonstrates that each Ether Fund is characterized by a substantial number of outstanding shares.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         The Exchange notes that on November 19, 2024, ETH underwent a reverse stock split, reducing the number of shares outstanding—and increasing the share price—tenfold.
                    </P>
                </FTNT>
                <P>
                    Further, according to the NYSE American Ether Approval Order,
                    <SU>15</SU>
                    <FTREF/>
                     the below table contains information regarding the number of beneficial holders of the Ether Funds as of December 31, 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s50,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Beneficial holders 
                            <LI>(as of </LI>
                            <LI>12/31/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>112,320</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>17,396</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>5,992</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As this table shows, each Ether Fund has significantly more than 2,000 beneficial holders (approximately 56, 9, and 3 times more, respectively), which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to pursuant to Exchange Rule 402(b)(2).
                    <SU>16</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the shares of each Ether Fund are widely held.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         The number of beneficial holders of ETH may have been impacted by the 10:1 reverse stock split, as investors with fewer than 10 shares would have received a cash payout.
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes that, based on trading volume since the Funds began trading on July 23, 2024, shares of the Ether Funds are actively traded. In particular, according to the NYSE American Ether Approval Order,
                    <SU>17</SU>
                    <FTREF/>
                     the table below sets forth the total trading volume (by shares and notional) from the inception of trading through either November 29, 2024 (for ETHE and ETH) or December 31, 2024 (for ETHW). In addition, the below table illustrates the average daily volume (“ADV”) over the 30-day period of either October 29, 2024—through November 29, 2024 (for ETHE and ETH) or November 29, 2024—through December 31, 2024 (for ETHW).
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31/24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s100,12,20,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Trading 
                            <LI>volume </LI>
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Trading 
                            <LI>volume </LI>
                            <LI>(notional $)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>427,312,540</ENT>
                        <ENT>$10,289,781,199</ENT>
                        <ENT>4,237,811</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>172,400,020</ENT>
                        <ENT>4,614,428,230</ENT>
                        <ENT>3,065,796</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>44,477,060</ENT>
                        <ENT>959,491,343</ENT>
                        <ENT>291,627</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As demonstrated above, even though the Ether Funds have been trading for less than one year, the trading volume for each Ether Fund is substantially higher than 2,400,000 shares (roughly 178, 72, and 16 times that amount), which is the minimum 12-month volume the Exchange generally requires for a security in order to list options on that security as set forth in Exchange Rule 402(b). The Exchange believes this data demonstrates that each Ether Fund is characterized by a substantial number of outstanding shares that are actively traded.</P>
                <P>
                    In addition to satisfying the Exchange's initial listing standards, options on the Ether Funds will be 
                    <PRTPAGE P="16275"/>
                    subject to the Exchange's continued listing standards as set forth in Exchange Rule 403(g).
                    <SU>19</SU>
                    <FTREF/>
                     Pursuant to Exchange Rule 403(g), the Exchange will not open for trading any additional series of option contracts covering a fund traded on the Exchange if such fund ceases to be an “NMS stock” as provided for Exchange Rule 402(b) or the fund is halted from trading on its primary market.
                    <SU>20</SU>
                    <FTREF/>
                     Additionally, options on funds traded on the Exchange may be subject to the suspension of opening transactions as follows: (1) the fund no longer meets the terms of Exchange Rule 403(b); (2) following the initial twelve-month period beginning upon the commencement of trading of the fund, there are fewer than 50 record and/or beneficial holders of the fund for 30 or more consecutive trading days; (3) the value of the underlying commodity 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 on the Exchange inadvisable.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         The Exchange proposes to amend Exchange Rule 402(i)(4) to include the Ether Funds in the list of ETPs deemed “Exchange-Traded Fund Shares”—of ETFs—for purposes of the continued listing standards set forth in Exchange Rule 403(g). 
                        <E T="03">See</E>
                         proposed Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 403(g).
                    </P>
                </FTNT>
                <P>
                    Options on each Ether Fund will be physically settled contracts with American-style exercise.
                    <SU>21</SU>
                    <FTREF/>
                     Consistent with Exchange Rule 404, which governs the opening of options series on a specific underlying security (including ETFs and ETPs), the Exchange will open at least one expiration month for options on each Ether Fund 
                    <SU>22</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on Ether Funds for trading on a weekly,
                    <SU>23</SU>
                    <FTREF/>
                     monthly,
                    <SU>24</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>25</SU>
                    <FTREF/>
                     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.
                    <SU>26</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 401 (Rights and Obligations of Holders and Writers), which provides that the rights and obligations of holders and writers of option contracts of any class of options dealt in on the Exchange shall be as set forth in the Rules of the Options Clearing Corporation (“OCC”). 
                        <E T="03">See also</E>
                         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: 
                        <E T="03">https://www.theocc.com/getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/occrules.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404. The monthly expirations are subject to certain listing criteria for underlying securities described within Exchange Rule 402. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Exchange Rule 404(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 404(e), 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 406.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Exchange Rule 404(g), which governs strike prices of series of options on ETFs, the interval between strike prices of series of options on Ether Funds will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>27</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>28</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>29</SU>
                    <FTREF/>
                     and the $2.50 Strike Price Program.
                    <SU>30</SU>
                    <FTREF/>
                     Pursuant to Exchange Rule 510, where the price of a series of an Ether Fund 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.
                    <SU>31</SU>
                    <FTREF/>
                     Any and all new series of Ether Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Exchange Rules 404 and 510, as applicable. Further, the Exchange notes that Exchange Rule 1502, which governs margin requirements applicable to the trading of all options on the Exchange, including options on ETFs and ETPs, will also apply to the trading of Ether Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Exchange Rules 404, Interpretation and Policies .02, .03, and .13, specifically set forth intervals between strike prices on Short Term Option Series, Quarterly Options Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(f).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 510(a). If options on an Ether Fund are eligible to participate in the Penny Interval Program, the minimum increment of $0.01 below $3.00 and $0.50 above $3.00 would apply. 
                        <E T="03">See</E>
                         Exchange Rule 510(a)(3). 
                        <E T="03">See also</E>
                         Exchange Rule 510(c) (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Position and Exercise Limits</HD>
                <P>
                    Position and exercise limits for options, including options on Ether Funds, are determined pursuant to Exchange Rules 307 and 309, respectively. Position and exercise limits for options vary according to the number of outstanding shares and the trading volumes of the underlying security over the past six months, where the largest in capitalization and the most frequently traded funds 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 funds 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.
                    <SU>32</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 307. For an option to be eligible for the 50,000-contract limit, the security underlying the option must have most recent six-month trading volume of at least 20,000,000 shares, or most recent six-month trading volume of at least 15,000,000 shares and at least 40,000,000 shares currently outstanding. For an option to be eligible for the 75,000-contract limit, the underlying security must have most recent six-month trading volume of at least 40,000,000 shares, or most recent six-month trading volume of at least 30,000,000 shares and at least 120,000,000 shares currently outstanding. For an option to be eligible for the 200,000-contract limit, the underlying security must have most recent six-month trading volume of at least 80,000,000 shares, or most recent six-month trading volume of at least 60,000,000 shares and at least 240,000,000 shares currently outstanding. For an option to be eligible for the 250,000-contract limit, the security underlying the option must have most recent six-month trading volume of at least 100,000,000 shares, or most recent six-month trading volume of at least 75,000,000 shares and at least 300,000,000 shares currently outstanding. The 25,000-contract limit applies to options on underlying securities that do not qualify for a higher contract limit. 
                        <E T="03">See</E>
                         Exchange Rule 307. In addition, Interpretation and Policy .01 to Exchange Rule 307 establishes higher position limits for options on certain ETFs.
                    </P>
                </FTNT>
                <P>
                    Position limits are designed to limit the number of options contracts traded on the Exchange in an underlying security that an investor, acting alone or in concert with others directly or indirectly, may control. The purpose of position limits, which are set forth in Exchange Rule 307, is to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. As such, position limits must balance concerns regarding mitigating potential manipulation and the cost of inhibiting potential hedging activity that investors may use for legitimate economic purposes. To achieve this balance, the Exchange proposes to set the position and exercise limits for the 
                    <PRTPAGE P="16276"/>
                    options on the Ether Funds at 25,000 contracts, a limit which has already been approved for options on ETPs that holds [sic] bitcoin.
                    <SU>33</SU>
                    <FTREF/>
                     Capping the position limit at 25,000 contracts, the lowest limit available in options, would address concerns related to manipulation and protection of investors as this number is conservative for the Ether Funds and therefore appropriate given their liquidity. While the Exchange believes that the proposed 25,000-contract position limit is conservative for options on the Ether Funds, it nonetheless believes that, for the reasons set forth below, evidence exists to support a much higher position limit.
                    <SU>34</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         BTC Approval Order. 
                        <E T="03">See also</E>
                         Exchange Rule 307, Interpretation and Policy .01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         The Exchange may file a subsequent rule change to amend the position and exercise limit for options on any or all the Ether Funds based on additional data regarding trading activity, to continue to balance any concerns regarding manipulation. A higher position limit would allow institutional investors to utilize options on the Ether Funds for prudent risk management purposes.
                    </P>
                </FTNT>
                <P>
                    As noted above, Exchange Rules set forth position (and exercise) limits for options, which vary according to the number of shares outstanding and the amount of trading in underlying during the most recent six-month period.
                    <SU>35</SU>
                    <FTREF/>
                     The Exchange believe that the trading volume in each Fund is sufficient to qualify each Fund for position limits in excess of the proposed 25,000-contract limit,
                    <SU>36</SU>
                    <FTREF/>
                     as shown in the table below, provided in the NYSE American Ether Approval Order.
                    <SU>37</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 307.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31,24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                         The Exchange notes that the Commission approved a 25,000-contract position limit for options trading on the Grayscale Bitcoin Mini Trust BTC which traded 335,492,9030 shares during its first two months of trading—well over the minimum requisite of 100,000,000 shares as required by Exchange Rule 307(d)(5). 
                        <E T="03">See</E>
                         BTC Approval Order.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s50,20">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">Total volume</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>
                            427,312,540 
                            <LI>((7/23/24-11/29/24)</LI>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>
                            172,400,020 
                            <LI>((7/23/24-11/29/24)</LI>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>
                            44,477,060 
                            <LI>((7/23/24-12/31/24)</LI>
                        </ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    Specifically, the trading volume referenced in the table above in ETHE and ETH well exceeds the requisite minimum of 100,000,000 shares necessary to qualify for the 250,000-contract position and exercise limits.
                    <SU>38</SU>
                    <FTREF/>
                     By comparison, other options symbols with less trading volume for six months than ETHE and ETH are eligible for position and exercise limits of at least 250,000.
                    <SU>39</SU>
                    <FTREF/>
                     Further, the most-recent [sic] trading volume referenced in the table above for ETHW well exceeded the requisite minimum of 40,000,000 shares necessary to qualify for the 75,000-contract position (and exercise) limit, which is three times the proposed 25,000- contract limit.
                    <SU>40</SU>
                    <FTREF/>
                     Finally, the proposed 25,000-contract position limit is the default for options that do not otherwise qualify for a higher limit and is therefore an adequate limit for each Ether Fund.
                    <SU>41</SU>
                    <FTREF/>
                     With respect to the outstanding shares of each Ether Fund, if a market participant held the maximum number of contracts possible pursuant to the proposed position and exercise limits (25,000 contracts), the equivalent shares represented by the proposed position/exercise limit (2,500,000 shares) would represent the following approximate percentage of current outstanding shares according to the data presented in the NYSE American Ether Approval Order: 
                    <SU>42</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         Exchange Rule 307(d)(5) states that to be eligible for the 250,000 option contract limit, either the most recent six-month trading volume of the underlying security must have totaled at least 100,000,000 shares; or the most recent six-month trading volume of the underlying security must have totaled at least 75,000,000 shares and the underlying security must have at least 300,000,000 currently outstanding.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See https://www.theocc.com/Market-Data/Market-Data-Reports/Series-and-Trading-Data/Series-Search</E>
                         (including the following symbols that have a position limit of 250,000: GLD, IAU, SLV, SIVR, SGOL).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         Exchange Rule 307(d)(3) states that to be eligible for the 75,000 contract limit, either the most recent six (6) month trading volume of the underlying security must have totaled at least forty (40) million shares or the most recent six (6) month trading volume of the underlying security must have totaled at least thirty (30) million shares and the underlying security must have at least 120 million shares currently outstanding.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         Exchange Rule 307(d)(1) states that a 25,000 contract limit applies to those options having an underlying security that does not meet the requirements for a higher option contract limit.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s100,12,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Proposed 
                            <LI>position/ </LI>
                            <LI>exercise</LI>
                            <LI>limits in </LI>
                            <LI>equivalent </LI>
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Outstanding shares 
                            <LI>(11/29/24)</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage of outstanding shares 
                            <LI>(%)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>1.4 </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>5.5 </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>15.1</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As this table demonstrates, if a market participant held the maximum permissible options positions in one of the Ether Fund options and exercised all of them at the same time, that market participant would control a small percentage of the outstanding shares of the underlying Ether Fund. For example, as noted above, a position limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the applicable Ether Fund (if that market participant exercised all its options). Based on the number of shares outstanding for each Ether Fund as of November 29, 2024, as presented in the NYSE American Ether Approval Order,
                    <SU>43</SU>
                    <FTREF/>
                     the table below sets forth the approximate number of market participants that could hold the maximum of 25,000 same side positions in each Ether Fund that would equate to the number of shares outstanding of that Ether Fund:
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <PRTPAGE P="16277"/>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s100,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Outstanding 
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Number of
                            <LI>market</LI>
                            <LI>participants</LI>
                            <LI>with 25,000</LI>
                            <LI>same side</LI>
                            <LI>positions</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>71</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>18</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>7</ENT>
                    </ROW>
                </GPOTABLE>
                <P>This means if 71 market participants had 25,000 same side positions in options on ETHE, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. Similarly, this means if 18 market participants had 25,000 same side positions in options on the ETH, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. Finally, this means if 7 market participants had 25,000 same side positions in options on ETHW, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. The Exchange believes it is highly unlikely for this to occur for any of these scenarios; however, even if such event did occur, the Exchange would not expect any of the Ether Funds to be under stress because such an event would merely induce the creation of more shares through the trust's creation and redemption process.</P>
                <P>
                    Further, given that the issuer of each Ether Fund may create and redeem shares that represent an interest in ether, the Exchange believes it is relevant to compare the size of a position limit to the market capitalization of the ether market. As of November 29, 2024, based on date [sic] presented in the NYSE American Ether Approval Order,
                    <SU>44</SU>
                    <FTREF/>
                     the global supply of ether was approximately 120.44 million, and the price of one ether was approximately $3,593.49,
                    <SU>45</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $439.78 billion. Consider the proposed position and exercise limit of 25,000 option contracts for each Ether Fund option. A position and exercise limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the ETHE, ETH, and ETHW, as applicable (if that market participant exercised all its options). The following table from the NYSE American Ether Approval Order 
                    <SU>46</SU>
                    <FTREF/>
                     shows the share price of each shows the share price of each Ether Fund on November 29, 2024, the value of 2,500,000 shares of the Ether Fund at that price, and the approximate percentage of that value of the size of the ether market:
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See https://finance.yahoo.com/quote/ETH-USD/history.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s100,12,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Nov. 29th
                            <LI>share price</LI>
                            <LI>($)</LI>
                        </CHED>
                        <CHED H="1">Value of 2,500,000 shares</CHED>
                        <CHED H="1">
                            Percentage of ether market
                            <LI>(%)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>$30.15</ENT>
                        <ENT>$75,250,000</ENT>
                        <ENT>0.017</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>33.84</ENT>
                        <ENT>84,600,000</ENT>
                        <ENT>0.020</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>25.80</ENT>
                        <ENT>64,500,000</ENT>
                        <ENT>0.015</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Therefore, if a market participant with the maximum 25,000 same side contracts in options on any of ETHE, ETH, ETHW exercised all positions at one time, such an event would have no practical impact on the ether market.</P>
                <P>
                    The Exchange also reviewed data presented in the NYSE American Ether Approval Order 
                    <SU>47</SU>
                    <FTREF/>
                     regarding the market capitalization of each of the Ether Funds relative to the market capitalization of the entire ether market, as of November 29, 2024:
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s100,12,20,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1">Ether/shares outstanding</CHED>
                        <CHED H="1">
                            Market capitalization ($)
                            <LI>(11/29/2024)</LI>
                        </CHED>
                        <CHED H="1">Percent of total ether market</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Total Ethereum Market</ENT>
                        <ENT>120,440,000</ENT>
                        <ENT>$432,799,935,600</ENT>
                        <ENT>100</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>5,425,852,635</ENT>
                        <ENT>1.25</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>1,547,003,157</ENT>
                        <ENT>0.36</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>430,886,200</ENT>
                        <ENT>0.10</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As this data gathered by NYSE American demonstrates, the Ether Funds collectively represent approximately 1.71% of the global supply of Ether (120,440,000).
                    <SU>48</SU>
                    <FTREF/>
                     Based on the $30.15 price of an ETHE share on November 29, 2024, a market participant could have redeemed one ether for approximately 119 ETHE shares. Another 14,354,890,070 ETHE shares could be created before the supply of ether was exhausted. As a result, 5,742 market participants would have to simultaneously exercise 25,000 same side positions in ETHE options to receive shares of the ETHE holding the entire global supply of ether. Similarly, based on the $33.84 price of an ETH share on November 29, 2024, a market participant could have redeemed one ether for approximately 106 ETH shares. Another 12,789,596,206 ETH shares could be created before the supply of ether was exhausted. As a result, 5,116 
                    <PRTPAGE P="16278"/>
                    market participants would have to simultaneously exercise 25,000 same side positions in ETH options to receive shares of ETH holding the entire global supply of ether. Similarly, based on the $25.80 price of an ETHW share on November 29, 2024, a market participant could have redeemed one ether for approximately 139 ETHW shares. Another 16,775,191,302 ETHW shares could be created before the supply of ether was exhausted. As a result, 6,710 market participants would have to simultaneously exercise 25,000 same side positions in ETHW options to receive shares of ETHW holding the entire global supply of ether. Unlike the Ether Funds, the number of shares that corporations may issue is limited. However, like corporations, which authorize additional shares, repurchase shares, or split their shares, the Ether Funds may create, redeem, or split shares in response to demand. The supply of ether is larger than the available supply of most securities.
                    <SU>49</SU>
                    <FTREF/>
                     Given the significant unlikelihood of any of these events ever occurring, the Exchange does not believe options on the Ether Funds should be subject to position and exercise limits even lower than those proposed (which are already equal to the lowest available limit for equity options in the industry) to protect the supply of ether.
                </P>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See https://finance.yahoo.com/quote/ETH-USD/history.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         The market capitalization of ether would rank in the top 20 among securities. 
                        <E T="03">See https://companiesmarketcap.com/usa/largest-companies-in-the-usa-by-market-cap/.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes the proposed limits are appropriate given position limits for ether futures. The NYSE American Ether Approval Order presented data 
                    <SU>50</SU>
                    <FTREF/>
                     that compared the proposed position limits to the position limit of Chicago Mercantile Exchange (“CME”) Ethereum futures. CME imposes a position limit of 8,000 futures (for the initial spot month) on its ether futures contract.
                    <SU>51</SU>
                    <FTREF/>
                     On November 29, 2024, CME Jan 25 ether futures settled at $3,629.69. A position of 8,000 CME Ethereum futures, therefore, would have a notional value of $1,451,876,000. The following table, as presented in the NYSE American Ether Approval Order 
                    <SU>52</SU>
                    <FTREF/>
                     shows the share price of each Ether Fund on November 29, 2024, and the approximate number of option contracts that equates to that notional value:
                </P>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 349 (description of CME ether futures) and Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices. Each CME ether futures contract is valued at fifty ethers as defined by the CME CF Ether Reference Rate (“ERR”). 
                        <E T="03">See</E>
                         CME Rulebook Chapter 349.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s100,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Nov. 29th 
                            <LI>share price </LI>
                            <LI>($)</LI>
                        </CHED>
                        <CHED H="1">
                            Number of 
                            <LI>option</LI>
                            <LI>contracts</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>$30.15</ENT>
                        <ENT>481,551</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>33.84</ENT>
                        <ENT>429,041</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>25.80</ENT>
                        <ENT>562,743</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The approximate number of option contracts for each Ether Fund that would equate to the notional value of CME ether futures is significantly higher than the proposed limit of 25,000 options contract for each Ether Fund option. The fact that many options ultimately expire out-of-the-money and thus are not exercised for shares of the underlying, while the delta of an ether future is 1, further demonstrates how conservative the proposed limits of 25,000 options contracts are for the Ether Fund options.</P>
                <P>
                    The Exchange notes, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>53</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>54</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. Considering CME's position limits on futures for ether, the Exchange believes that that the proposed same side position limits are more than appropriate for the Ether Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Consistent with its position regarding the irrelevance of bitcoin supply to position limits for options on bitcoin ETPs, the Exchange likewise believes the available supply of ether is not relevant to the determination of position and exercise limits for Ether Fund options.
                    <SU>55</SU>
                    <FTREF/>
                     Position and exercise limits are not a tool that should be used to address an underlying of an underlying. Position and exercise limits do not limit the total number of options that may be held, but rather they limit the number of positions a single customer may hold or exercise at one time.
                    <SU>56</SU>
                    <FTREF/>
                     “Since the inception of standardized options trading, the options exchanges have had rules imposing limits on the aggregate number of options contracts that a member or customer could hold or exercise.” 
                    <SU>57</SU>
                    <FTREF/>
                     Position and exercise limit 
                    <PRTPAGE P="16279"/>
                    rules are intended “to prevent the establishment of options positions that can be used or might create incentives to manipulate or disrupt the underlying market so as to benefit the options position. In particular, position and exercise limits are designed to minimize the potential for mini-manipulations and for corners or squeezes of the underlying market. In addition, such limits serve to reduce the possibility for disruption of the options market itself, especially in illiquid options classes.” 
                    <SU>58</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         
                        <E T="03">See</E>
                         BTC Approval Order, 89 FR at 94862, n. 50 (asserting that, outside of the bitcoin context, the Exchange is unaware of any proposed rule change related to position and exercise limits for any equity option (including commodity ETF options) for which the Commission required consideration of whether the available supply of an underlying (whether it be a corporate stock or an ETF) or the contents of an ETF (commodity or otherwise) should be considered when an exchange proposed to establish those limits). 
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 57894 May 30, 2008, 73 FR 32061 (June 5, 2008) (SR-CBOE-2005-11) (approval order in which the Commission stated that the “listing and trading of Gold Trust Options will be subject to the exchanges' rules pertaining to position and exercise limits and margin”). The Exchange notes the position limits in Exchange Rule 307 are the same as when the Commission approved this filing. For reference, the current position and exercise limits for options on SPDR Gold Shares ETF (“GLD”) and options on iShares Silver Trust (“SLV”) are 250,000 contracts, or 10 times that proposed position and exercise limit for the Ether Fund options.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         For example, suppose an option has a position limit of 25,000 option contracts and there are a total of 10 investors trading that option. If all 10 investors max out their positions, that would result in 250,000 option contracts outstanding at that time. However, suppose 10 more investors decide to begin trading that option and also max out their positions. This would result in 500,000 option contracts outstanding at that time. An increase in the number of investors could cause an increase in outstanding options even if position limits remain unchanged.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange notes that a Registration Statement on Form S-1 was filed with the Commission for each Ether Fund, each of which described the supply of ether as being unlimited.
                    <SU>59</SU>
                    <FTREF/>
                     Each Registration Statement permits an unlimited number of shares of the applicable Ether Fund to be created. Further, the Commission approved proposed rule changes that permitted the listing and trading of shares of each Ether Fund, which approval did not comment on the sufficient supply of ether or address whether there was a risk that permitting an unlimited number of shares for an Ether Fund would impact the supply of ether.
                    <SU>60</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the Commission had ample time and opportunity to consider whether the supply of ether was sufficient to permit the creation of unlimited Ether Fund shares, and does not believe considering this supply with respect to the establishment of position and exercise limits is appropriate given its lack of relevance to the purpose of position and exercise limits. However, given the significant size of the ether supply, the proposed positions limits are more than sufficient to protect investors and the market.
                </P>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         
                        <E T="03">See, e.g.,</E>
                         ETHE Form S-1 Registration Statement, at p. 77, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2020455/000119312524106957/d756153ds1.htm;</E>
                         ETH Amendment No. 5 to Form S-1 Registration Statement, at p. 79, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2020455/000119312524181081/d756153ds1a.htm;</E>
                         and ETHW Form S-1 Registration Statement 1, at p. 17, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2013744/000199937124007581/bitwise-s1a_061824.htm</E>
                         (“Ether Funds Reg. Stmts.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         
                        <E T="03">See</E>
                         BTC Approval Order.
                    </P>
                </FTNT>
                <P>
                    Based on the foregoing, the Exchange believes the proposal to list options on the Ether Funds with positions and exercise limits of 25,000 on the same side, the lowest position limit available in the options industry, is conservative and appropriate given the market capitalization, average daily volume, and high number of outstanding shares for each of the Ether Funds. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying Ether Funds as well as the ether market.
                    <SU>61</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <P>As described herein, options on the Ether Funds will trade in the same manner as any other ETF or ETP options on the Exchange. The Exchange Rules that currently apply to the listing and trading of options on the Exchange, including, for example, Rules that govern listing criteria, expiration and exercise prices, minimum increments, margin requirements, customer accounts and trading halt procedures will apply to the listing and trading of Ether Funds on the Exchange in the same manner as they apply to all other ETFs and ETPs that are listed and traded on the Exchange, including the precious metal-backed commodity ETPs already deemed appropriate for options trading on the Exchange pursuant to Exchange Rule 402. Further, as described above, Exchange Rules regarding position and exercise limits will likewise apply to options on the Ether Funds except that, as proposed, the position and exercise limits will be set at 25,000 on the same side.</P>
                <STARS/>
                <P>The Exchange notes that options on Ether Funds would not be available for trading until The Options Clearing Corporation (“OCC”) represents to the Exchange that it is fully able to clear and settle such options. The Exchange has also analyzed its capacity and represents that it and The Options Price Reporting Authority (“OPRA”) have the necessary systems capacity to handle the additional traffic associated with the listing of options on Ether Funds. The Exchange believes any additional traffic that would be generated from the trading of options on Ether Funds would be manageable. The Exchange represents that Exchange members will not have a capacity issue as a result of this proposed rule change.</P>
                <P>
                    The Exchange represents that the same surveillance procedures applicable to all other options currently listed and traded on the Exchange will apply to options on Ether Funds, and that it has the necessary systems capacity to support the new option series. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ether Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ether Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by the Exchange's market surveillance staff, the Exchange would also be able to obtain information regarding trading in shares of the Ether Funds on other exchanges though ISG. Further, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”). Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances.
                    <SU>62</SU>
                    <FTREF/>
                     The Exchange notes that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds.
                </P>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) 
                        <E T="03">and</E>
                         17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO. Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>
                    The underlying shares of spot ether ETP, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals 
                    <PRTPAGE P="16280"/>
                    of several exchanges to list and trade shares of spot ether-based ETPs,
                </P>
                <EXTRACT>
                    <FP>
                        [e]ach Exchange has a comprehensive surveillance sharing agreement with the [CME] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ethereum futures market.
                        <SU>63</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             
                            <E T="03">See</E>
                             Ether ETP Approval Order, 89 FR at 46938.
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that, given the consistently high correlation between the CME ether futures market and the spot ether market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>64</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR at 46939.
                    </P>
                </FTNT>
                <P>
                    In light of surveillance measures related to both options and futures as well as the Ether Funds,
                    <SU>65</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds. Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ether Funds.
                </P>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2023-70), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2023-70/srnysearca202370-475871-1363474.pdf</E>
                        ; Amendment No. 1 to Proposed Rule Change to List and Trade Shares of the Bitwise Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024-31), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-31/srnysearca202431-475891-1363514.pdf</E>
                        ; and Amendment No.2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum Mini ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024-44), filed May 22, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-44/srnysearca202444-476231-1364174.pdf</E>
                        .
                    </P>
                </FTNT>
                <P>
                    Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on the Ether Funds will be available via Options Price Reporting Authority (“OPRA”) and major market data vendors. The Exchange believes that offering options on Ether Funds will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of ether and hedging vehicle to meet their investment needs in connection with Ether-related products and positions. The Exchange expects investors will transact in options on Ether Funds in the unregulated over-the-counter (“OTC”) options market,
                    <SU>66</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed 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 Ether Funds 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 Exchange notes that the ETPs that hold precious metal commodities on which the Exchange may already list and trade options are trusts structured in substantially the same manner as Ether Funds 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 options on any ETFs or ETPs that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals) that it currently lists and trades on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>66</SU>
                         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.
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that applicable Exchange rules will require that customers receive appropriate disclosure before trading options in Ether Funds.
                    <SU>67</SU>
                    <FTREF/>
                     Further, brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>68</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>67</SU>
                         
                        <E T="03">See</E>
                         Exchange Rules 1307(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>68</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 1309.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>69</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>70</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>71</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>69</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>70</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>71</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>In particular, the Exchange believes that the proposal to list and trade options on the Ether Funds 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 Ether Funds will provide investors with a greater opportunity to realize the benefits of utilizing options on Ether Funds, including cost efficiencies and increased hedging strategies.</P>
                <P>
                    The Exchange believes that offering Ether Fund 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 ether and with ether-related products and positions. Additionally, the Exchange's offering of Ether Fund 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 ETPs,
                    <SU>72</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as Ether Funds and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     Ether rather than precious metals) and for which the Exchange has not identified any issues with the continued listing and trading of commodity-backed ETP options it currently lists for trading.
                </P>
                <FTNT>
                    <P>
                        <SU>72</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <PRTPAGE P="16281"/>
                <P>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 Ether Funds 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. Additionally, as demonstrated above, each Ether Fund is characterized by a substantial number of shares that are widely held and actively traded. Ether Fund 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 options on ETFs, including permissible expirations, strike prices and minimum increments, and applicable position and exercise limits (as proposed herein), and margin requirements, will govern the listing and trading of options on Ether Funds in the same manner.</P>
                <P>
                    The proposed position and exercise limits for options on each of the Ether Funds is 25,000 contracts, which proposed limits were recently approved for certain ETPs that hold bitcoin.
                    <SU>73</SU>
                    <FTREF/>
                     These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given each Ether Fund's market capitalization, ADV, number of beneficial holders, and high number of outstanding shares.
                    <SU>74</SU>
                    <FTREF/>
                     The proposed position limit, and exercise limit, is consistent with the Act as it addresses concerns related to manipulation and protection of investors because, as demonstrated above, the position limit (and exercise limit) is extremely conservative and more than appropriate given the Ether Funds are actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>73</SU>
                         
                        <E T="03">See</E>
                         BTC Approval Order. 
                        <E T="03">See also</E>
                         Exchange Rule 307, Interpretation and Policy .01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>74</SU>
                         As noted herein, the Ether Funds collectively represent approximately 1.71% of the ether market.
                    </P>
                </FTNT>
                <P>
                    The Exchange represents that it has the necessary systems capacity to support the new Ether Fund options. 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 options, including Ether Fund options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ether Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ether Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by the Exchange's market surveillance staff, the Exchange would also be able to obtain information regarding trading in shares of the Ether Funds on other exchanges though ISG. Further, the Exchange has a Regulatory Services Agreement with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds. The underlying shares of spot ether ETPs, including the Ether Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>75</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME ethereum futures market and the spot ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>76</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>75</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR, at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>76</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR, at 46941.
                    </P>
                </FTNT>
                <P>
                    In light of surveillance measures related to both options and futures as well as the underlying Ether Funds,
                    <SU>77</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on ether ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>77</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2023-70), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2023-70/srnysearca202370-475871-1363474.pdf</E>
                        ; Amendment No. 1 to Proposed Rule Change to List and Trade Shares of the Bitwise Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024-31), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-31/srnysearca202431-475891-1363514.pdf</E>
                        ; and Amendment No.2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum Mini ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024-44), filed May 22, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-44/srnysearca202444-476231-1364174.pdf</E>
                        .
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that this proposal 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 applicable Exchange rules will require that customers receive appropriate disclosure before trading options in Ether Funds 
                    <SU>78</SU>
                    <FTREF/>
                     and will require that brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>79</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>78</SU>
                         
                        <E T="03">See</E>
                         Exchange Rules 1307(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>79</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 1309.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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. In this regard and as indicated above, the Exchange notes that the rule change is being proposed as a competitive response to the filing submitted by NYSE American.
                    <SU>80</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>80</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    <E T="03">Intramarket Competition:</E>
                     The Exchange does not believe that the 
                    <PRTPAGE P="16282"/>
                    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 options on the Ether Funds 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, Ether Fund options will be equally available to all market participants who wish to trade such options. 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 Ether Funds. Also, and as stated above, the Exchange already lists options on other commodity-based ETPs.
                    <SU>81</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>81</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i).
                    </P>
                </FTNT>
                <P>
                    <E T="03">Intermarket Competition:</E>
                     The Exchange does not believe that the proposal to list and trade options on Ether Funds 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 the Ether Funds 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 the Ether Funds. The Exchange notes that listing and trading Ether Funds 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.
                </P>
                <P>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 the Ether Funds 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 ether prices and ether-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>Written comments were neither solicited nor received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>82</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>83</SU>
                    <FTREF/>
                     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 
                    <SU>84</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>85</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>82</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>83</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>84</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>85</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>86</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>87</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Ethereum Funds.
                    <SU>88</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Ethereum Funds, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Ethereum Funds. The proposal also establishes position and exercise limits for options on the Ethereum Funds and provides information regarding the surveillance procedures that will apply to Ethereum Fund options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Ethereum Fund options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>89</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>86</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>87</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>88</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025) (Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to Amend Exchange Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust) (SR-NYSEAMER-2025-45).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>89</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov</E>
                    . Please include file number SR-MIAX-2025-21 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-MIAX-2025-21. 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 (
                    <E T="03">
                        https://www.sec.gov/
                        <PRTPAGE P="16283"/>
                        rules/sro.shtml
                    </E>
                    ). 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-MIAX-2025-21 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>90</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>90</SU>
                             17 CFR 200.30-3(a)(12), (59).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06555 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102817; File No. SR-NYSEARCA-2025-31]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules 5.3-O, 5.4-O, and 6.8-O</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) 
                    <SU>1</SU>
                    <FTREF/>
                     of the Securities Exchange Act of 1934 (“Act”) 
                    <SU>2</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>3</SU>
                    <FTREF/>
                     notice is hereby given that, on April 9, 2025, NYSE Arca, Inc. (“NYSE Arca” 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 change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         15 U.S.C. 78a.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The Exchange proposes to amend Rules 5.3-O, 5.4-O, and 6.8-O to allow the Exchange to list and trade options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF. The proposed rule change is available on the Exchange's website at 
                    <E T="03">www.nyse.com,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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 those 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 parts of such statements.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Rule 5.3-O (Criteria for Underlying Securities), Rule 5.4-O (Withdrawal of Approval of Underlying Securities), and Rule 6.8-O (Position Limits) to allow the Exchange to list and trade options on the following exchange-traded products: the Grayscale Ethereum Trust ETF (“ETHE”), the Grayscale Ethereum Mini Trust ETF (“ETH”), and the Bitwise Ethereum ETF (“ETHW”) (each, an “Ether Fund” or collectively, the “Ether Funds”).
                    <SU>4</SU>
                    <FTREF/>
                     This is a competitive filing based on a similar proposal submitted by NYSE American LLC (“NYSE American”) and approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 5.3-O, Commentary .01. On July 23, 2024, the Ether Funds began trading on the Exchange, after the Commission approved rule changes to list and trade shares of “Ether-Based Commodity-Based Trust Shares” pursuant to Rule 8.201-E(c)(1) (Commodity-Based Trust Shares) 
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEARCA-2023-70; SR-NYSEARCA-2024-31) (order approving the listing and trading of, among other Ether-Based Exchange-Traded Products, the Bitwise Ethereum ETF and the Grayscale Ethereum Trust (ETH)); and 100541 (July 17, 2024), 89 FR 59786 (July 23, 2024) (SR-NYSEARCA-2024-44; SR-NYSEARCA-2024-53) (order approving the listing and trading of shares of the Grayscale Ethereum Mini Trust and ProShares Ethereum ETF).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. [sic] 102799 (April 9, 2024) (SR-NYSEAMER-2024-45) (approving the listing and trading of options [sic] ETHE, ETH, and ETHW) (“American Ether ETP Options Approval”).
                    </P>
                </FTNT>
                <P>
                    Rule 5.3-O provides that, subject to certain other criteria set forth in the Rule,
                    <SU>6</SU>
                    <FTREF/>
                     securities deemed appropriate for options trading include Exchange-Traded Fund Shares (or ETFs) that represent certain types of interests 
                    <SU>7</SU>
                    <FTREF/>
                     and exchange-traded products (“ETPs”) structured as trusts that hold precious metals (which are deemed 
                    <PRTPAGE P="16284"/>
                    commodities).
                    <SU>8</SU>
                    <FTREF/>
                     Recently, the Exchange obtained rule authority from the Commission to list and trade options on specific funds that hold bitcoin (also deemed a commodity).
                    <SU>9</SU>
                    <FTREF/>
                     Like ETPs backed by precious metals and bitcoin (
                    <E T="03">i.e.,</E>
                     commodities), the Exchange proposes to allow options trading on the Ether Funds that hold ether—which is also deemed a commodity.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         To be eligible for options trading, ETFs and ETPs must satisfy the initial listing criteria set forth in Rule 5.3-O(g)(1) through (2).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Rule 5.3-O(g) permits options trading on ETFs that are traded on a national securities exchange and are defined as an “NMS stock” in Rule 600(b)(55)[sic] of Regulation NMS, that 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 indexes, equity caps, collars and floors, swap agreements, forward contracts, repurchase agreements and reverse purchase 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 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); interests in a trust or similar entity 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 and pays the beneficial owner interest and other distributions on deposited non-U.S. currency, if any, declared and paid by the trust (“Currency Trust Shares”); 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 Units”); or represents an interest in a registered investment company (“Investment Company”) organized as an open-end management investment company or similar entity, that invests in a portfolio of securities selected by the Investment Company's investment adviser consistent with the Investment Company's investment objectives and policies, which is issued in a specified aggregate minimum number in return for a deposit of a specified portfolio of securities and/or a cash amount with a value equal to the next determined net asset value (“NAV”), and when aggregated in the same specified minimum number, may be redeemed at a holder's request, which holder will be paid a specified portfolio of securities and/or cash with a value equal to the next determined NAV (“Managed Fund Share”); provided that all of the conditions listed in Rules 5.3-O and 5.4-O are met. 
                        <E T="03">See</E>
                         Rule 5.3-O(g)(i)-(iii) and (vii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Rule 5.3-O(g) permits the listing and trading of options on shares of the following trusts: SPDR Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the ETFS Silver Trust, the ETFS Gold Trust, ETFS Palladium Trust, or ETFS Platinum Trust. 
                        <E T="03">See</E>
                         Rule 5.3-O(g)(iv)-(vi) and (viii)-(ix).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 101713 (November 22, 2024), 89 FR 94839 (November 29, 2024) (SR-NYSEARCA-2024-101) (notice of immediately effective rule change to permit options trading on the Grayscale Bitcoin Trust (BTC) (“GBTC), the Grayscale Bitcoin Mini Trust (BTC) (“BTC”), and the Bitwise Bitcoin ETF (“BITB”), thus allowing the Exchange to align its rules with already-approved NYSE American rules). 
                        <E T="03">See also</E>
                         Rule 5.3-O, Commentary .01 (permitting options trading on certain bitcoin-backed ETPs, including GBTC, BTC, and BITB).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 5.3-O, Commentary .01 (permitting the Exchange to list and trade options on shares of ETHE, ETH, and ETHW, pursuant to Rules 5.3-O and 5.4-O).
                    </P>
                </FTNT>
                <P>
                    The Ether Funds are structured as trusts that hold ether. Like ETFs and ETPs currently deemed appropriate for options trading, the investment objective of each Ether Fund trust is for its shares to reflect the performance of ether (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to ether without the complexities of ether delivery. Each Ether Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of ether and are designed to track ether or the performance of the price of ether and offer access to the ether market.
                    <SU>11</SU>
                    <FTREF/>
                     The Ether Funds provide investors with cost-efficient alternatives that allow a level of participation in the ether market through the securities market.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes each Ether Fund satisfies the Exchange's initial listing standards set forth in Rule 5.3-O(a).
                    <SU>12</SU>
                    <FTREF/>
                     The Exchange notes that the Ether Funds also satisfy the listing standard applied to ETFs traded on the Exchange that they be available for creation and redemption each business day as set forth in Rule 5.3-O(g)(1)(B).
                    <SU>13</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Rule 5.3-O(a) provides for guidelines to be used by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         Rule 5.3-O(g)(1)(B) requires that ETFs must be available for creation or redemption each business day from or through the issuer in cash or in kind at a price related to net asset value, and the issuer must be obligated to issue 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.
                    </P>
                </FTNT>
                <P>
                    First, each of the Ether Funds satisfy the criteria and guidelines set forth in Rule 5.3-O. Pursuant to Rule 5.3-O(b), a security 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.
                    <SU>14</SU>
                    <FTREF/>
                     Each of the Ether Funds is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>15</SU>
                    <FTREF/>
                     The Exchange believes each Ether Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 5.3-O(a), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Rule 5.3-O(b). An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>As of November 29, 2024, the Ether Funds had the following number of shares outstanding (and corresponding market capitalization):</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Shares
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">
                            Market
                            <LI>capitalization</LI>
                            <LI>(11/29/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>$5,425,852,635</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>1,547,003,157</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>430,886,200</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As shown above, each of the Ether Funds had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to the Exchange's rules.
                    <SU>16</SU>
                    <FTREF/>
                     The Exchange believes this demonstrates that each Ether Fund is characterized by a substantial number of outstanding shares.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         The Exchange notes that on November 19, 2024, ETH underwent a reverse stock split, reducing the number of shares outstanding—and increasing the share price—tenfold.
                    </P>
                </FTNT>
                <P>Further, the below table contains information regarding the number of beneficial holders of the Ether Funds as of December 31, 2024.</P>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s25,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Beneficial holders
                            <LI>(as of</LI>
                            <LI>12/31/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>112,320</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>17,396</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>5,992</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As this table shows, each Ether Fund has significantly more than 2,000 beneficial holders (approximately 56, 9, and 3 times more, respectively), which is the minimum number of holders the Exchange generally requires for corporate stock to list options on that stock pursuant to the Exchanges [sic] rules.
                    <SU>17</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the shares of each Ether Fund are widely held.
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         The number of beneficial holders of ETH may have been impacted by the 10:1 reverse stock split, as investors with fewer than 10 shares would have received a cash payout. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes that, based on trading volume since the Ether Funds began trading on July 23, 2024, shares of the Ether Funds are actively traded. In particular, the table below sets forth the total trading volume (by shares and notional) from the inception of trading through either November 29, 2024 (for ETHE and ETH) or December 31, 2024 (for ETHW). In addition, the below table illustrates the average daily volume (“ADV”) over the 30-day period of either October 29, 2024-through November 29, 2024 (for ETHE and ETH) or November 29, 2024-through December 31, 2024 (for ETHW).
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31/24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                    </P>
                </FTNT>
                <PRTPAGE P="16285"/>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s25,15,15,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Trading volume
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Trading volume
                            <LI>(notional $)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>427,312,540</ENT>
                        <ENT>$10,289,781,199</ENT>
                        <ENT>4,237,811</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>172,400,020</ENT>
                        <ENT>4,614,428,230</ENT>
                        <ENT>3,065,796</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>44,477,060</ENT>
                        <ENT>959,491,343</ENT>
                        <ENT>291,627</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As demonstrated above, even though the Ether Funds have been trading for less than one year, the trading volume for each Ether Fund is substantially higher than 2,400,000 shares (roughly 178, 72, and 16 times that amount), which is the minimum 12-month volume the Exchange generally requires for a security to list options on that security. The Exchange believes this data demonstrates each Ether Fund is characterized by a substantial number of outstanding shares that are actively traded.</P>
                <P>
                    In addition to satisfying the Exchange's initial listing standards, options on Ether Funds will be subject to the Exchange's continued listing standards as set forth in Rule 5.4-O(k).
                    <SU>19</SU>
                    <FTREF/>
                     Pursuant to Rule 5.4-O, the Exchange will not open for trading any additional series of option contracts covering a fund traded on the Exchange if such fund ceases to be an “NMS stock” or the fund is halted from trading on its primary market.
                    <SU>20</SU>
                    <FTREF/>
                     Additionally, options on funds traded on the Exchange may be subject to the suspension of opening transactions as follows: (1) the fund no longer meets the terms of Rule 5.4-O(b)(1)-(4); 
                    <SU>21</SU>
                    <FTREF/>
                     (2) following the initial twelve-month period beginning upon the commencement of trading of the fund, there are fewer than 50 record and/or beneficial holders of the fund for 30 or more consecutive trading days; (3) the value of the underlying commodity 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 on the Exchange inadvisable.
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         The Exchange proposes to modify Commentary .02 to Rule 5.4-O to specify that for purposes of the continued listing standards set forth in Rule 5.4-O(k), the Ether Funds will be deemed “Exchange-Traded Fund Shares” (or ETFs). 
                        <E T="03">See</E>
                         proposed Commentary .02 to Rule 5.4-O.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Rule 5.4-O(k).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         The Exchange notes that Rule 5.4-O(b)(4) is currently held as “Reserved.”
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 5.4-O(k)(1)-(4).
                    </P>
                </FTNT>
                <P>
                    Options on each Ether Fund will be physically settled contracts with American-style exercise.
                    <SU>23</SU>
                    <FTREF/>
                     Consistent with Rule 6.4-O, which governs the opening of options series on a specific underlying security (including ETFs and ETPs), the Exchange will open at least one expiration month for options on each Ether Fund 
                    <SU>24</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on Ether Funds for trading on a weekly,
                    <SU>25</SU>
                    <FTREF/>
                     monthly,
                    <SU>26</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>27</SU>
                    <FTREF/>
                     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.
                    <SU>28</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Rule 6.5-O (Rights and Obligations of Holders and Writers), which provides that the rights and obligations of holders and writers of option contracts of any class of options dealt in on the Exchange shall be as set forth in the Rules of the Clearing Corporation. 
                        <E T="03">See also</E>
                         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: 
                        <E T="03">https://www.theocc.com/getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/occrules.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         The monthly expirations are subject to certain listing criteria for underlying securities described within Rule 5.3-O. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Rule 6.4-O(a), 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. New series of options on an individual stock may be added until the beginning of the month in which the options contract will expire. 
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .06. 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. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .07.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .09.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .08.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O(d).
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rule 6.4-O, Commentary .05(a), which governs strike prices of series of options on ETFs, the interval between strike prices of series of options on Ether Funds will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>29</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>30</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>31</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>32</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>33</SU>
                    <FTREF/>
                     Pursuant to Rule 6.72-O, where the price of a series of a Ether Fund 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.
                    <SU>34</SU>
                    <FTREF/>
                     Any and all new series of Ether Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 6.4-O and 6.72-O, as applicable. Further, the Exchange notes that Rule 4.16-O, which governs margin requirements applicable to the trading of all options on the Exchange, including options on ETFs and ETPs, will also apply to the trading of Ether Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Rule 6.4-O, Commentary .07 through .09, specifically set forth intervals between strike prices on Quarterly Options Series, Short Term Option Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         Rule 6.4-O, Commentary .10.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         If options on any of the Ether Funds are eligible to participate in the Penny Interval Program, the minimum increment of $0.01 below $3.00 and $0.50 above $3.00 would apply. 
                        <E T="03">See</E>
                         Rule 6.72-O(a)(3). 
                        <E T="03">See also</E>
                         Rule 6.72A-O (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>
                    The Exchange may authorize for trading a FLEX option class on any equity security if it may authorize for trading a non-FLEX option class on that equity security pursuant to Rule 5.3-O, subject to specified exceptions.
                    <SU>35</SU>
                    <FTREF/>
                     At this time, the Exchange is not proposing to permit Ether Fund options to trade as FLEX options.
                    <SU>36</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         Rule 5.32-O(f)(1). 
                        <E T="03">See generally</E>
                         Section 4 (Flexible Exchange (“FLEX”) Options).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See</E>
                         Rule 5.32-O(f)(1) (providing that the Exchange may authorize FLEX trading of on any equity security that is eligible for non-FLEX trading “except those set forth in Commentary .01 to Rule 5.3-O,” 
                        <E T="03">i.e.,</E>
                         the Ether Funds). The Exchange may submit a subsequent rule filing that would permit the Exchange to authorize FLEX trading of Ether Fund options, which filing may propose changes to existing FLEX option position limits for such options as appropriate.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Position and Exercise Limits</HD>
                <P>
                    Position and exercise limits for options, including options on Ether Funds, are determined pursuant to Rules 6.8-O and 6.9-O, respectively. Position and exercise limits for options vary according to the number of outstanding shares and the trading volumes of the underlying security over the past six months, where the largest in capitalization and the most frequently 
                    <PRTPAGE P="16286"/>
                    traded funds 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 funds 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.
                    <SU>37</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">See</E>
                         Commentary .06(a)-(e) to Rule 6.8-O. For an option to be eligible for the 50,000-contract limit, the security underlying the option must have most recent six-month trading volume of at least 20,000,000 shares, or most recent six-month trading volume of at least 15,000,000 shares and at least 40,000,000 shares currently outstanding. For an option to be eligible for the 75,000-contract limit, the underlying security must have most recent six-month trading volume of at least 40,000,000 shares, or most recent six-month trading volume of at least 30,000,000 shares and at least 120,000,000 shares currently outstanding. For an option to be eligible for the 200,000-contract limit, the underlying security must have most recent six-month trading volume of at least 80,000,000 shares, or most recent six-month trading volume of at least 60,000,000 shares and at least 240,000,000 shares currently outstanding. For an option to be eligible for the 250,000-contract limit, the security underlying the option must have most recent six-month trading volume of at least 100,000,000 shares, or most recent six-month trading volume of at least 75,000,000 shares and at least 300,000,000 shares currently outstanding. The 25,000-contract position limit applies to options on underlying securities that do not qualify for a higher contract limit. 
                        <E T="03">See</E>
                         Commentary .06(c) to Rule 6.8-O. In addition, Commentary .06(f) to Rule 6.8-O establishes higher position limits for options on certain ETFs.
                    </P>
                </FTNT>
                <P>
                    Position limits are designed to limit the number of options contracts traded on the Exchange in an underlying security that an investor, acting alone or in concert with others directly or indirectly, may control. The purpose of position limits, which are set forth in Rule 6.8-O, is to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. Accordingly, position limits must balance concerns regarding mitigating potential manipulation and the cost of inhibiting potential hedging activity that investors may use for legitimate economic purposes. To achieve this balance, the Exchange proposes to set the position and exercise limits for the options on the Ether Funds at 25,000 contracts, a limit which has already been approved for options on ETPs that hold bitcoin.
                    <SU>38</SU>
                    <FTREF/>
                     Capping the position limit at 25,000 contracts, the lowest limit available in options, would address concerns related to manipulation and protection of investors as this number is conservative for the Ether Funds and therefore appropriate given their liquidity.
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 6.8-O, Commentary .06(f) (proposing a 25,000-contract position limit for Ether Fund options, the same limit that has been approved for options on bitcoin-backed ETPs as set forth in current Commentary .06(f)). The exercise limits for Ether Fund options will be the same as the position limits (
                        <E T="03">i.e.,</E>
                         25,000-contract). 
                        <E T="03">See</E>
                         Rule 6.9-O, Commentary .01 (providing that exercise limits will be “equivalent to the corresponding position limit for the same particular class of options as determined by Rule 6.8-O and Commentary thereto”).
                    </P>
                </FTNT>
                <P>
                    Based on the foregoing, the Exchange believes the proposal to list options on the Ether Funds with positions and exercise limits of 25,000 on the same side, the lowest position limit available in the options industry, is conservative and appropriate given the market capitalization, average daily volume, and high number of outstanding shares for each of the Ether Funds.
                    <SU>39</SU>
                    <FTREF/>
                     The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying Ether Funds as well as the ether market.
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         The Exchange may file a subsequent rule change to amend the position and exercise limit for options on any or all the Ether Funds based on additional data regarding trading activity, to continue to balance any concerns regarding manipulation. A higher position limit would allow institutional investors to utilize options on the Ether Funds for prudent risk management purposes.
                    </P>
                </FTNT>
                <P>As described herein, options on Ether Funds will trade in the same manner as any other ETF or ETP options on the Exchange, except that the Ether Funds will not be eligible for FLEX option trading. The Exchange Rules that currently apply to the listing and trading of options on the Exchange, including, for example, Rules that govern listing criteria, expiration and exercise prices, minimum increments, margin requirements, customer accounts and trading halt procedures will apply to the listing and trading of Ether Funds on the Exchange in the same manner as they apply to all other ETFs and ETPs that are listed and traded on the Exchange, including the precious metal-backed commodity ETPs already deemed appropriate for options trading on the Exchange. Further, as described above, Exchange Rules regarding position and exercise limits will likewise apply to options on the Ether Funds except that, as proposed, the position and exercise limits will be set at 25,000 on the same side.</P>
                <P>The Exchange notes that options on Ether Funds would not be available for trading until The Options Clearing Corporation (“OCC”) represents to the Exchange that it is fully able to clear and settle such options. The Exchange has also analyzed its capacity and represents that it and The Options Price Reporting Authority (“OPRA”) have the necessary systems capacity to handle the additional traffic associated with the listing of options on Ether Funds. The Exchange believes any additional traffic that would be generated from the trading of options on Ether Funds would be manageable. The Exchange represents that Exchange members will not have a capacity issue as a result of this proposed rule change.</P>
                <P>
                    The Exchange represents that the same surveillance procedures applicable to all other options currently listed and traded on the Exchange will apply to options on Ether Funds, and that it has the necessary systems capacity to support the new option series. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options, as well as the proposed options on Ether Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ether Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that the Financial Industry Regulatory Authority (“FINRA”) conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the ISG Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by the Exchange's market surveillance staff, the Exchange would also be able to obtain information regarding trading in shares of the Ether Funds on other exchanges though ISG. Further, the Exchange has a Regulatory Services Agreement (“RSA”) with FINRA. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances.
                    <SU>40</SU>
                    <FTREF/>
                     The 
                    <PRTPAGE P="16287"/>
                    Exchange notes that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds.
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and 
                        <PRTPAGE/>
                        regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO. Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>The underlying shares of spot ether ETPs, including the Ether Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based exchange-traded products:</P>
                <EXTRACT>
                    <P>
                        Each Exchange has a comprehensive surveillance-sharing agreement with the [CME] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.
                        <SU>41</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>41</SU>
                             
                            <E T="03">See</E>
                             Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937, 46938 (May 30, 2024) (File Nos. SR-NYSEARCA-2023-70; SR-NYSEARCA-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Ether-Based Commodity-Based Trust Shares and Trust Units) (“Ether ETP Approval Order”).
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that, given the consistently high correlation between the CME ether futures market and the spot ether market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of [the Ether ETPs].” 
                    <SU>42</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR 46941.
                    </P>
                </FTNT>
                <P>
                    In light of surveillance measures related to both options and futures as well as the underlying Ether Funds,
                    <FTREF/>
                    <SU>43</SU>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds.
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the Grayscale Bitcoin Trust (BTC) under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2021-90), filed Jan. 5, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2021-90/srnysearca202190-358659-884182.pdf;</E>
                         Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the Bitwise Bitcoin ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2023-44), filed Jan. 5, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2023-44/srnysearca202344-358800-884322.pdf;</E>
                         and Notice of Filing of Proposed Rule Change, as Modified by Amendment No. 1, To List and Trade Shares of the Grayscale Bitcoin Mini Trust Under NYSE Arca Rule 8.201-E, Commodity-Based Trust Shares, Securities Exchange Act Release No. 100290 (June 6, 2024), 89 FR 49931 (June 12, 2024) (SR-NYSEARCA-2024-45); 
                        <E T="03">see also</E>
                         Ether ETP Approval Order.
                    </P>
                </FTNT>
                <P>Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on Ether Funds will be available via OPRA and major market data vendors.</P>
                <P>
                    The Exchange believes that offering options on Ether Funds will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of ether and hedging vehicle to meet their investment needs in connection with ether-related products and positions. The Exchange expects investors will transact in options on Ether Funds in the unregulated over-the-counter (“OTC”) options market,
                    <SU>44</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed 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 Ether Fund 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 Exchange notes that the ETPs that hold precious metal commodities on which the Exchange may already list and trade options are trusts structured in substantially the same manner as Ether Funds 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 options on any ETFs or ETPs that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals) that it currently lists and trades on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         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.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposed rule change is consistent with Section 6(b) of the Act 
                    <SU>45</SU>
                    <FTREF/>
                     in general and furthers the objectives of Section 6(b)(5) of the Act 
                    <SU>46</SU>
                    <FTREF/>
                     in particular, in that it is designed to promote just and equitable principles of trade, to remove impediments to and perfect the mechanisms of a free and open market and a national market system, and, in general, to protect investors and the public interest.
                </P>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <P>In particular, the Exchange believes that the proposal to list and trade Ether Fund options 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 Ether Funds will provide investors with an opportunity to realize the benefits of utilizing options on an Ether Fund, including cost efficiencies and increased hedging strategies.</P>
                <P>
                    The Exchange believes that offering Ether Fund 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 ether and with ether-related products and positions. Additionally, the Exchange's offering of Ether Fund 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 ETPs,
                    <SU>47</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as Ether Funds and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     ether rather than precious metals) and for which the Exchange has not identified any issues with the continued listing and trading of 
                    <PRTPAGE P="16288"/>
                    commodity-backed ETP options it currently lists for trading.
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         Rule 5.3-O(g)(iv)-(vi) and (viii)-(ix) (permitting the listing and trading of options on shares of ETPs that hold precious metals) and Rule 5.3-O, Commentary .01 (permitting the listing and trading of options on shares of ETPs that hold bitcoin).
                    </P>
                </FTNT>
                <P>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 the Ether Funds satisfy the initial listing standards and continued listing standards currently in the Exchange Rules applicable to options on all ETFs and ETPs, including ETPs that hold other commodities already deemed appropriate for options trading on the Exchange. Additionally, as demonstrated above, each Ether Fund is characterized by a substantial number of shares that are widely held and actively traded. Ether Fund options will trade in the same manner as any other ETF or ETP options—the same Exchange Rules that currently govern the listing and trading of options, including permissible expirations, strike prices, minimum increments, and margin requirements, will govern the listing and trading of options on Ether Funds in the same manner.</P>
                <P>
                    The Exchange believes the proposal to exclude Ether Fund options from eligibility for FLEX trading is consistent with the Act because it will permit the Exchange to continue to participate in ongoing discussions with the Commission regarding appropriate position limits for options on these Funds.
                    <SU>48</SU>
                    <FTREF/>
                     In addition, this proposal benefits investors and in public interest because adds clarity and transparency to Exchange rules making them easier to navigate and understand, which in turn removes impediments to and perfects the mechanism of a free and open market and a national market system.
                </P>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         The Exchange may submit a subsequent rule filing that would permit the Exchange to authorize for trading FLEX options on the Ether Funds (which filing may propose changes to existing FLEX option position limits for such options if appropriate).
                    </P>
                </FTNT>
                <P>
                    The proposed position and exercise limit for options on the Ether Funds is 25,000 contracts, which proposed limits were recently approved for ETPs that hold bitcoin.
                    <SU>49</SU>
                    <FTREF/>
                     These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given the Ether Funds' market capitalization, average daily volume, number of beneficial holders, and high number of outstanding shares. The proposed position and exercise limits are consistent with the Act as they addresses [sic] concerns related to manipulation and protection of investors because the position and exercise limits are extremely conservative and more than appropriate given the Ether Funds are actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">See</E>
                         Rule 6.8-O, Commentary .06(f) (providing that options on bitcoin-backed ETPs are subject to a 25,000-contract position limit). 
                        <E T="03">See</E>
                         Rule 6.9-O, Commentary .01 (providing that the exercise limit for Ether Fund options will be “equivalent to the corresponding position limit” for such options “as determined by Rule 6.8-O and Commentary thereto” (
                        <E T="03">i.e.,</E>
                         25,000 contacts)).
                    </P>
                </FTNT>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Ether Fund options. 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 options, including Ether Fund options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ether Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ether Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the ISG under the ISG Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by the Exchange's market surveillance staff, the Exchange would also be able to obtain information regarding trading in shares of the Ether Funds on other exchanges though ISG. Further, the Exchange has an RSA with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances. The Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds.</P>
                <P>
                    The underlying shares of spot ether ETPs, including the Ether Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>50</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME ether futures market and the spot ether market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>51</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Ether Funds,
                    <SU>52</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ether ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR 46941.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2023-70), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2023-70/srnysearca202370-475871-1363474.pdf;</E>
                         Amendment No. 1 to Proposed Rule Change to List and Trade Shares of the Bitwise Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024-31), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-31/srnysearca202431-475891-1363514.pdf;</E>
                         and Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum Mini ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024-44), filed May 22, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-44/srnysearca202444-476231-1364174.pdf.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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.
                    <PRTPAGE P="16289"/>
                </P>
                <P>
                    <E T="03">Intramarket Competition:</E>
                     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 Ether Fund options would need to satisfy the initial listing standards set forth in the Exchange Rules in the same manner as any other option on an ETF before the Exchange could list these options. Additionally, Ether Fund 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 Ether Funds. Also, and as stated above, the Exchange already lists options on other commodity-based ETPs.
                    <SU>53</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         
                        <E T="03">See</E>
                         Rule 5.3-O(g)(iv)-(vi) and (viii)-(ix) (permitting the listing and trading of options on shares of ETPs that hold precious metals) and Rule 5.3-O, Commentary .01 (permitting the listing and trading of options on shares of ETPs that hold bitcoin).
                    </P>
                </FTNT>
                <P>
                    <E T="03">Intermarket Competition:</E>
                     The Exchange does not believe that the proposal to list and trade options on Ether Funds 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 Ether Fund 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. As noted herein, this filing based on a similar proposal submitted by NYSE American and approved by the Commission.
                    <SU>54</SU>
                    <FTREF/>
                     Additionally, other options exchanges are free to amend their listing rules, as applicable, to permit them to list and trade options on the Ether Funds. The Exchange notes that listing and trading Ether Fund 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.
                </P>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         
                        <E T="03">See supra</E>
                         note 5, American Ether ETP Options Approval.
                    </P>
                </FTNT>
                <P>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 Ether Fund 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 ether prices and ether-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were solicited or received with respect to the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>55</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>56</SU>
                    <FTREF/>
                     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 
                    <SU>57</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>58</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         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.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>59</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>60</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Ether Funds.
                    <SU>61</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Ether Funds, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Ether Funds. The proposal also establishes position and exercise limits for options on the Ether Funds and provides information regarding the surveillance procedures that will apply to Ether Funds options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Ether Funds options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>62</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2024) (SR-NYSEAMER-2024-45) (approving the listing and trading of options on ETHE, ETH, and ETHW).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-NYSEARCA-2025-31 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <PRTPAGE P="16290"/>
                <FP>
                    All submissions should refer to file number SR-NYSEARCA-2025-31. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-NYSEARCA-2025-31 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>63</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>63</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06495 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>Release No. 34-102831; File No. SR-CBOE-2025-025]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules To Allow the Exchange To List Options on the iShares Ethereum Trust</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 9, 2025, Cboe Exchange, Inc. (“Exchange” or “Cboe Options”) 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 Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe Exchange, Inc. (the “Exchange” or “Cboe Options”) proposes to amend its Rules to allow the Exchange to list options on the iShares Ethereum Trust (the “Trust”). The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://www.cboe.com/AboutCBOE/CBOELegalRegulatoryHome.aspx</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Rule 4.3 regarding the criteria for underlying securities. Specifically, the Exchange proposes to amend Rule 4.3, Interpretation and Policy .06(a)(4) to allow the Exchange to list and trade options on Units 
                    <SU>5</SU>
                    <FTREF/>
                     that represent interests in the Trust. This is a competitive filing based on a similar proposal submitted by Nasdaq ISE, LLC (“ISE”), which was recently approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>6</SU>
                    <FTREF/>
                     Current Rule 4.3, Interpretation and Policy .06 provides that, subject to certain other criteria set forth in that Rule, securities deemed appropriate for options trading include Units that represent certain types of interests,
                    <FTREF/>
                    <SU>7</SU>
                      
                    <PRTPAGE P="16291"/>
                    including interests in certain specific trusts that hold financial instruments, money market instruments, precious metals (which are deemed commodities), or Bitcoin (which is another crypto currency and deemed a commodity). In addition, Rule 4.3, Interpretation and Policy .06 requires that Units must either (1) meet the criteria and standards set forth in Rule 4.3, Interpretation and Policy .01(a),
                    <SU>8</SU>
                    <FTREF/>
                     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 Units in a specified aggregate number even if some or all of the investment assets required to be deposited have not been received by the issuer, subject to the condition that the person obligated to deposit the investments has undertaken to deliver the investment assets as soon as possible and such undertaking is secured by the delivery and maintenance of collateral consisting of cash or cash equivalents satisfactory to the issuer, as provided in the respective prospectus.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         Rule 1.1 defines a “Unit” (which may also be referred to as an ETF) as a share or other security traded on a national securities exchange and defined as an NMS stock as set forth in Rule 4.3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100661 (August 6, 2024), 89 FR 65690 (August 12, 2024) (SR-ISE-2024-35); and Securities Exchange Act Release No. 102798 (April 9, 2025) (“ISE Approval”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Rule 4.3, Interpretation and Policy .06(a), which permits options trading on Units that represent (1) 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 indexes, equity caps, collars and floors, swap agreements, forward contracts, repurchase agreements and reverse purchase 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 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); (2) interests in a trust or similar entity 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 and pays the beneficial owner interest and other distributions on deposited non-U.S. currency, if any, declared and paid by the trust (“Currency Trust Shares”); (3) 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 Units”); (4) interests in the SPDR Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Physical Silver Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Physical Palladium Trust, the Aberdeen Standard Physical Platinum Trust, the Sprott Physical Gold Trust, the Goldman Sachs Physical Gold ETF, the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF; or (5) an interest in a registered investment company (“Investment Company”) organized as an open-end management investment company or similar entity, that invests in a portfolio of securities selected by the Investment Company's investment adviser consistent with the Investment Company's investment objectives and policies, which is issued in a specified aggregate minimum number in return for a deposit of a specified portfolio of securities and/or a cash amount with a value equal to the next determined net asset value (“NAV”), and when aggregated in the same specified minimum number, may be redeemed at a 
                        <PRTPAGE/>
                        holder's request, which holder will be paid a specified portfolio of securities and/or cash with a value equal to the next determined NAV (“Managed Fund Share”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Rule 4.3, Interpretation and Policy .01 provides for guidelines to be by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <P>The Exchange proposes to add the Trust to the list of Units on which the Exchange may list options in Rule 4.3, Interpretation and Policy .06(a)(4). The shares are issued by the Trust, a Delaware statutory trust. The Trust will operate pursuant to a trust agreement (the “Trust Agreement”) between the Sponsor, BlackRock Fund Advisors (the “Trustee”) as the trustee of the Trust and will appoint Wilmington Trust, National Association, as Delaware Trustee of the Trust (the “Delaware Trustee”) by such time that the Registration Statement is effective. The Trust issues Shares representing fractional undivided beneficial interests in its net assets. The assets of the Trust will consist only of ether (“ether” or “ETH”) held by a custodian on behalf of the Trust, except under limited circumstances when transferred through the Trust's prime broker temporarily (described below), and cash. Neither the Trust, nor the Sponsor, nor the Ether Custodian (as defined below), nor any other person associated with the Trust will, directly or indirectly, engage in action where any portion of the Trust's ETH becomes subject to the Ethereum proof-of-stake validation or is used to earn additional ETH or generate income or other earnings. Coinbase Custody Trust Company, LLC (the “Ether Custodian”), is the custodian for the Trust's ether holdings, and maintains a custody account for the Trust (“Custody Account”); Coinbase, Inc. (the “Prime Execution Agent”), an affiliate of the Ether Custodian, is the prime broker for the Trust and maintains a trading account for the Trust (“Trading Account”); and The Bank of New York Mellon is the custodian for the Trust's cash holdings (the “Cash Custodian” and together with the Ether Custodian, the “Custodians”) and the administrator of the Trust (the “Trust Administrator”). Under the Trust Agreement, the Trustee may delegate all or a portion of its duties to any agent, and has delegated the bulk of the day-to-day responsibilities to the Trust Administrator and certain other administrative and record-keeping functions to its affiliates and other agents. The Trust is not an investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”).</P>
                <P>The investment objective of the Trust is to reflect generally the performance of the price of ether. The Trust seeks to reflect such performance before payment of the Trust's expenses and liabilities. The Shares are intended to constitute a simple means of making an investment similar to an investment in ether through the public securities market rather than by acquiring, holding and trading ether directly on a peer-to-peer or other basis or via a digital asset platform. The Shares have been designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in ether, while at the same time having an intrinsic value that reflects, at any given time, the investment exposure to the ether owned by the Trust at such time, less the Trust's expenses and liabilities. Although the Shares are not the exact equivalent of a direct investment in ether, they provide investors with an alternative method of achieving investment exposure to ether through the public securities market, which may be more familiar to them.</P>
                <P>
                    An investment in the Shares is backed by ether held by the Ether Custodian on behalf of the Trust. All of the Trust's ether will be held in the Custody Account, other than the Trust's ether which is temporarily maintained in the Trading Account under limited circumstances, 
                    <E T="03">i.e.,</E>
                     in connection with creation and redemption Basket 
                    <SU>9</SU>
                    <FTREF/>
                     activity or sales of ether deducted from the Trust's holdings in payment of Trust expenses or the Sponsor's fee (or, in extraordinary circumstances, upon liquidation of the Trust). The Custody Account includes all of the Trust's ether held at the Ether Custodian, but does not include the Trust's ether temporarily maintained at the Prime Execution Agent in the Trading Account from time to time. The Ether Custodian will keep all of the private keys associated with the Trust's ether held in the Custody Account in “cold storage”.
                    <SU>10</SU>
                    <FTREF/>
                     The hardware, software, systems, and procedures of the Ether Custodian may not be available or cost-effective for many investors to access directly.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The Trust issues and redeems Shares only in blocks of 40,000 or integral multiples thereof. A block of 40,000 Shares is called a “Basket.” These transactions take place in exchange for ether.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         The term “cold storage” refers to a safeguarding method by which the private keys corresponding to the Trust's ether are generated and stored in an offline manner, subject to layers of procedures designed to enhance security. Private keys are generated by the Ether Custodian in offline computers that are not connected to the internet so that they are more resistant to being hacked.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot ether as well as a hedging vehicle to meet their investment needs in connection with ether products and positions. Similar to other commodity ETFs in which options may be listed on the Exchange (
                    <E T="03">e.g.</E>
                     SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, or the Aberdeen Standard Physical Gold Trust),
                    <SU>11</SU>
                    <FTREF/>
                     the proposed ETF is a trust that essentially offers the same objectives and benefits to investors.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See</E>
                         Rule 4.3, Interpretation and Policy .06(a)(4).
                    </P>
                </FTNT>
                <P>Options on the Trust 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 options on the Trust on the Exchange. Today, these rules apply to options on the various commodities ETFs deemed appropriate for options trading on the Exchange pursuant to Rule 4.3, Interpretation and Policy .06.</P>
                <P>
                    The Exchange's initial listing standards for ETFs on which options may be listed and traded on the Exchange will apply to the Trust. 
                    <PRTPAGE P="16292"/>
                    Pursuant to Rule 4.3(a), a security (which includes a Unit) 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 Securities Exchange Act of 1934, as amended (the “Act”)), and be characterized by a substantial number of outstanding shares that are widely held and actively traded.
                    <SU>12</SU>
                    <FTREF/>
                     Pursuant to Rule 4.3, Interpretation and Policy .06, requires that Units must either (1) meet the criteria and standards set forth in Rule 4.3, Interpretation and Policy .01(a),
                    <SU>13</SU>
                    <FTREF/>
                     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 Units in a specified aggregate number even if some or all of the investment assets required to be deposited have not been received by the issuer, subject to the condition that the person obligated to deposit the investments has undertaken to deliver the investment assets as soon as possible and such undertaking is secured by the delivery and maintenance of collateral consisting of cash or cash equivalents satisfactory to the issuer, as provided in the respective prospectus. The Trust satisfies Rule 4.3, Interpretation and Policy .06(b)(2), as each Unit is subject to this creation and redemption process.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 4.3, Interpretation and Policy .01, subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         Rule 4.3, Interpretation and Policy .01 provides for guidelines to be by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <P>Options on the Trust will be subject to the Exchange's continued listing standards set forth in Rule 4.4, Interpretation and Policy .06 for Units deemed appropriate for options trading pursuant to Rule 4.3, Interpretation and Policy .06. Specifically, Rule 4.4, Interpretation and Policy .06 provides that Units that were initially approved for options trading pursuant to Rule 4.3, Interpretation and Policy .06 shall be deemed not to meet the requirements for continued approval, and the Exchange shall not open for trading any additional series of option contracts of the class covering that such Units, if the Units cease to be an NMS stock or the Units are halted from trading in their primary market. Additionally, options on Units may be subject to the suspension of opening transactions in any of the following circumstances: (1) in the case of options covering Units approved for trading under Rule 4.3, Interpretation and Policy .06(b)(1), in accordance with the terms of paragraphs (a), (b), and (c) of Rule 4.4, Interpretation and Policy .01; (2) in the case of options covering Units approved for trading under Rule 4.3 Interpretation and Policy .06(b)(2) (as is the case for the Trust), following the initial twelve-month period beginning upon the commencement of trading in the Units on a national securities exchange and are defined as an NMS stock, there are fewer than 50 record and/or beneficial holders of such Units for 30 or more consecutive trading days; (3) the value of the index or portfolio of securities, non-U.S. currency, or portfolio of commodities including commodity futures contracts, options on commodity futures contracts, swaps, forward contracts and/or options on physical commodities and/or financial instruments and money market instruments on which the Units are based is no longer calculated or available; or (4) such other event shall occur or condition exist that in the opinion of the Exchange makes further dealing in such options on the Exchange inadvisable.</P>
                <P>
                    Options on the Trust will be physically settled contracts with American-style exercise.
                    <SU>14</SU>
                    <FTREF/>
                     Consistent with current Rule 4.5, which governs the opening of options series on a specific underlying security (including Units), the Exchange will open at least one expiration month for options on the Trust 
                    <SU>15</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on the Trust for trading on a weekly,
                    <SU>16</SU>
                    <FTREF/>
                     monthly,
                    <SU>17</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>18</SU>
                    <FTREF/>
                     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.
                    <SU>19</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See</E>
                         Rule 4.2, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">and</E>
                         Equity Options Product Specifications January 3, 2024), available at Equity Options Specifications (cboe.com); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5(b). The monthly expirations are subject to certain listing criteria for underlying securities described within Rule 4.3. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Rule 4.5(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. 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5(d).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5(g).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5(f).
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rule 4.5, Interpretation and Policy .07, which governs strike prices of series of options on Units, the interval of strikes prices for series of options on the Trust will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>20</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>21</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>22</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>23</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>24</SU>
                    <FTREF/>
                     Pursuant to Rule 5.4, where the price of a series of a Trust 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.
                    <SU>25</SU>
                    <FTREF/>
                     Any and all new series of Trust options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 4.5 and 5.4, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Rules 4.5(d), (e), and (g) specifically sets forth intervals between strike prices on Quarterly Options Series, Short Term Option Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5, Interpretation and Policy .01(a).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5, Interpretation and Policy .01(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Rule 4.5, Interpretation and Policy .01(f).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         If options on the Trust 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. 
                        <E T="03">See</E>
                         5.4(d) (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>
                    Trust options will trade in the same manner as any other Unit options on the Exchange. The Exchange Rules that currently apply to the listing and trading of all Unit options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Trust options on the Exchange in the same manner as they apply to other options on all other Units that are listed and traded on the Exchange, including the precious-metal and Bitcoin-backed 
                    <PRTPAGE P="16293"/>
                    commodity Units already deemed appropriate for options trading on the Exchange pursuant to current Rule 4.3, Interpretation and Policy .06(a)(4).
                </P>
                <P>Rule 4.20 currently permits the Exchange to authorize for trading a FLEX option class on any equity security if it may authorize for trading a non-FLEX option class on that equity security pursuant to Rule 4.3. The proposed rule change amends Rule 4.20 to exclude the Trust from this provision.</P>
                <P>
                    The Exchange also proposes to amend Rule 8.30. Specifically, the Exchange proposes to amend Rule 8.30, Interpretation and Policy .10 to provide a position limit of 25,000 same side option contracts for Trust options. Additionally, pursuant to the Rule 8.42, Interpretation and Policy .02, the exercise limits for options on the Trust will be equivalent to this proposed position limit. In considering the appropriate position and exercise limits for the Trust options, the Exchange reviewed the data presented by ISE in the ISE Approval. In the ISE Approval, ISE considered the Trust's market capitalization and average daily volume (“ADV”) against those of other underlying securities, as well as the proposed position and exercise limit in relation to other options. In measuring the Trust against other securities, ISE aggregated market capitalization and volume data for securities that have defined position limits utilizing data from The Options Clearing Corporations (“OCC”).
                    <SU>26</SU>
                    <FTREF/>
                     ISE also considered the trading volume for the Trust in terms of daily and notional volumes during the period of time the Trust has been trading from July 23, 2024 through December 14, 2024. The average daily volume for this time period is 5,302,533 shares and the average notional volume for this time period is $127,825,276.00. The Trust had 93,352 shareholders.
                    <SU>27</SU>
                    <FTREF/>
                     ISE indicated both the average daily volume and the average notional volume experienced an uptick at launch (which can be typical for anticipated product launches) then levelled off for several months. Renewed growth in the cryptocurrency market caused increased growth beginning in early November 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         ISE represented these computations were based on OCC data from October 22, 2024, and that data displaying zero values in market capitalization or ADV were removed.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         ISE represented it obtained this number from Broadridge Financial Solutions, Inc. on December 19, 2024.
                    </P>
                </FTNT>
                <P>
                    ISE reviewed the market capitalization and ADV of 3,930 options on single stock securities excluding ETFs.
                    <SU>28</SU>
                    <FTREF/>
                     Next, ISE aggregated this data based on market capitalization and ADV and grouped option symbols by position limit utilizing statistical thresholds for ADV and market capitalization for each position limit category (
                    <E T="03">i.e.</E>
                     25,000, 50,000 to 65,000, 75,000, 100,000 to less than 250,000, 250,000 to less than 500,000, 500,000 to 1,000,000 and greater than 1,000,000). Rule 8.30 sets out position limits for various contracts. For example, like ISE, a 25,000 contract limit applies to those options having an underlying security that does not meet the requirements for a higher options contract limit. ISE indicated it performed this exercise to demonstrate the Trust's position limit relative to other options symbols in terms of market capitalization and ADV. For reference the market capitalization for the Trust was 1.16 billion 
                    <SU>29</SU>
                    <FTREF/>
                     with an ADV, for the preceding three months prior to October 22, 2024, of greater than 2.99 million shares. By comparison, other options symbols with similar market capitalization and ADV have a position limit of 50,000 contracts or 75,000 contracts.
                    <SU>30</SU>
                    <FTREF/>
                     From a 90-day ADV perspective, ISE reviewed statistics that indicated that the Trust had a 90-day ADV greater than each of the stocks in the 100,000 contracts to 249,000 contracts range. Therefore, the proposed 25,000 same side position and exercise limits for options on the Trust are conservative.
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         The Trust has one asset and therefore is not comparable to a broad based ETF where there are typically multiple components.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         ISE acquired this figure as of October 22, 2024. See 
                        <E T="03">https://www.ishares.com/us/products/337614/ishares-ethereum-trust-etf.</E>
                         The global supply of ether grows each day ether are minted.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         ISE determined the median market capitalization for 50,000 contracts was 788,000,000 million and the median market capitalization for 75,000 contracts was 1,037,000 billion. Further, placing the Trust at 50,000 contracts would rank it in the 59th percentile in market capitalization and placing the Trust at 75,000 contracts would rank it in the 46th percentile in market capitalization.
                    </P>
                </FTNT>
                <P>
                    Second, ISE reviewed the Trust's data relative to the market capitalization of the entire ether market in terms of exercise risk and availability of deliverables. Utilizing data as of October 22, 2024, there were 120,392,960 Ethereum in circulation. The price of Ethereum on October 22, 2024, was $2,620 per coin which equates to a market capitalization of greater than $315 billion US dollars. If a position limit of 25,000 options were considered (the position limit that would be typically assigned based upon data), the exercisable risk would represent less than 4.3524% of the outstanding shares of the Trust.
                    <SU>31</SU>
                    <FTREF/>
                     Since the Trust has a creation and redemption process managed through the issuer, we can additionally compare the position limit sought to the total market capitalization of the entire Ethereum market. In this case, the exercisable risk represented by 25,000 options on the Trust would be less than 0.03% of the market capitalization of all outstanding ether. Assuming a scenario where all 25,000 options on ether shares were exercised given the proposed 25,000 per same side position limit, this would have a virtually unnoticed impact on the entire ether market. This analysis demonstrates that the proposed 25,000 per same side position limit (and exercise limit) is conservative and appropriate for options on the Trust.
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         The 4.4% was calculated as follows: 2,500,000 (exercisable stock from position limit)/57,440,000 (shares outstanding on October 22, 2024) = 4.35237%.
                    </P>
                </FTNT>
                <P>
                    Third, ISE reviewed the proposed position limit by comparing it to position limits for derivative products regulated by the Commodity Futures Trading Commission (“CFTC”). While the CFTC, through the relevant Designated Contract Markets, only regulates options positions based upon delta equivalents (creating a less stringent standard), we examined equivalent ether futures position limits. In particular, ISE looked at the CME Ethereum futures contract 
                    <SU>32</SU>
                    <FTREF/>
                     that has a position limit of 8,000 futures.
                    <SU>33</SU>
                    <FTREF/>
                     On October 22, 2024, CME ether futures settled at $2,629. Using a contract multiplier of $50, a position limit of 8,000 futures would have a notional value $1.0516 billion (8,000 × $50 × $2,629). Using an October 22, 2024, share price of $19.91 for shares of the Trust, a futures position of 8,000 contracts, with a notional value of $1.0516 billion dollars would equate to an options position of 528,176 contracts ($1.0516 billion (notional value of 8,000 Ethereum futures contracts)/$19.91 (price of the Trust shares) = 52,817,679 (Trust shares)/100 (the number of shares represented by one options contract)) = 528,176 options contracts. Because substantial sums of any distributed options portfolio are likely to be out of the money on expiration, an options position limit equivalent to the CME position limit for Ethereum (considering that all options deltas are &lt;=1.00) should be a bit higher than the CME implied 528,176 contract limit.
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         CME Ether Futures are described in Chapter 350 of CME's Rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook, Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <P>
                    The Exchange notes, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts 
                    <PRTPAGE P="16294"/>
                    that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>34</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>35</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. Considering CME's position limits on futures for Ethereum, the Exchange believes that that the proposed same side position limits are more than appropriate for the Trust options.
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>In analyzing the proposed position limit for options on the Trust, ISE also considered the supply of ether. Specifically, ISE examined the number of market participants with a position limit of 25,000 contracts that would need to exercise in unison to put the underlying asset under stress. In the case of options on ether, the proposed 25,000 same side position and exercise limit effectively restricts a market participant from holding positions that could be exercised in excess of 2,500,000 shares of the Trust. Utilizing data from October 22, 2024, the Trust had 57,440,000 shares outstanding, therefore 22.976 participants would have to simultaneously exercise their position limits in order to create a scenario that may put the underlying asset (shares of the Trust) under stress. The Exchange notes that historically, from observation only, it appears that no more than five market participants holding options positions in any single security have exercised in unison in any option. As unlikely an occurrence as all market participants exercising their positions in unison would be, if it were to occur, it should be noted that even such an occurrence would not likely put the Trust under stress as economic incentives, would induce the creation of more shares through the ETF creation and redemption process.</P>
                <P>
                    Further, given that the current global supply of Ethereum, the underlying asset of the Trust, is 120,392,960 
                    <SU>36</SU>
                    <FTREF/>
                     coins and each Ethereum coin can currently be exchanged (Ethereum to USD and then USD to Trust shares) for 131.6 shares of the Trust another 15,843,979,598 shares of the Trust could be created by the underlying ETF. In addition, as of October 22, 2024, a 25,000 contract position limit for options on the Trust would represent less than 4.3524% of the outstanding shares of the Trust (2,500,000 (position limit exercise)/57,440,000 (shares outstanding of the Trust on October 22, 2024)) = 4.3524%.
                    <SU>37</SU>
                    <FTREF/>
                     Also, as of October 22, 2024, a 25,000 contract position limit for options on the Trust would represent less than .01578% of the global supply of ether (2,500,000 (position limit exercise)/120,392,960 (number of ether) × 131.6 (Trust shares per ether)) = .01578%.
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         This figure was acquired as of October 22, 2024. 
                        <E T="03">See https://www.ishares.com/us/products/337614/ishares-ethereum-trust-etf.</E>
                         The global supply of ether grows each day ether are minted.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">See https://coinmarketcap.com/currencies/ethereum/.</E>
                    </P>
                </FTNT>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. Cboe intends to apply those same program procedures to options on the Trust that it applies to the Exchange's other options products, including options on Units.
                    <SU>38</SU>
                    <FTREF/>
                     Cboe's market surveillance staff would have access to the surveillances conducted by Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe EDGX Exchange, Inc.
                    <SU>39</SU>
                    <FTREF/>
                     with respect to the Trust and would review activity in the underlying Trust when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining information from its affiliated markets, the Exchange would be able to obtain information regarding trading in shares of the Trust from their primary listing markets and from other markets that trade shares of the Trust through ISG. In addition, Cboe has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”) for certain market surveillance, investigation and examinations functions. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate amongst themselves and FINRA responsibilities to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>40</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         The surveillance program includes surveillance patterns for price and volume movements as well as patterns for potential manipulation (
                        <E T="03">e.g.,</E>
                         spoofing and marking the close).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe EDGX Exchange, Inc. are affiliated markets of the Exchange.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         Section 19(g)(1) of the Act, among other things, requires every self-regulatory organization (“SRO”) registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs,
                    <SU>41</SU>
                    <FTREF/>
                     “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the [CME] via their common membership in ISG. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME Ether futures market.” 
                    <SU>42</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the 
                    <PRTPAGE P="16295"/>
                    [Ethereum ETPs].” 
                    <SU>43</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Trust,
                    <SU>44</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust.
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; and SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ethereum ETP Approval Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, at 46938 (footnotes excluded).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, at 46941 (footnote excluded).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on the Trust will be available via Options Price Reporting Authority (“OPRA”) and major market data vendors. 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 the Trust up to the number of expirations currently permissible under the Rules.</P>
                <P>
                    The Exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of Ethereum and hedging vehicle to meet their investment needs in connection with Ethereum -related products and positions. The Exchange expects investors will transact in options on the Trust in the unregulated over-the-counter (“OTC”) options market,
                    <SU>45</SU>
                    <FTREF/>
                     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 positions; (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 Trust 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 Units that hold financial instruments, money market instruments, precious metal commodities, or Bitcoin on which the Exchange may already list and trade options are trusts structured in substantially the same manner as the Trust 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 Unit options, including Units that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals and Bitcoin) that it currently lists and trades on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         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.
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that applicable Exchange rules will require that customers receive appropriate disclosure before trading options in the Trust.
                    <SU>46</SU>
                    <FTREF/>
                     Further, brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>47</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Rules 9.1(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         Rule 9.3.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>48</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>49</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>50</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>In particular, the Exchange believes that the proposal to list and trade options on the Trust 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 the Trust will provide investors with a greater opportunity to realize the benefits of utilizing options on an ETF based on spot Ethereum, including cost efficiencies and increased hedging strategies. The Exchange believes that offering options on a competitively priced ETF based on spot Ethereum will benefit investors by providing them with an additional, relatively lower-cost risk management tool, allowing them to manage, more easily, their positions and associated risks in their portfolios in connection with exposure to spot Ethereum. Additionally, the Exchange's offering of Trust 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. Today, the Exchange lists options on other commodity (including Ethereum) ETFs structured as a trust, which essentially offer the same objectives and benefits to investors, and for which the Exchange has not identified any issues with the continued listing and trading of options on those ETFs.</P>
                <P>The Exchange also believes the proposal to permit options on the Trust will remove impediments to and perfect the mechanism of a free and open market and a national market system, because options on the Trust will comply with current Exchange Rules. Options on the Trust must satisfy the initial listing standards and continued listing standards currently in the Rules, applicable to options on all ETFs, including options on other commodity ETFs already deemed appropriate for options trading on the Exchange pursuant to Rule 4.3, Interpretation and Policy .06(a)(d). Additionally, as demonstrated above, the Trust is characterized by a substantial number of shares that are widely held and actively traded. Further, Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (as proposed herein), and margin requirements, will govern the listing and trading of options on the Trust.</P>
                <P>
                    The Exchange believes the proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the 
                    <PRTPAGE P="16296"/>
                    market in the security underlying the options. The proposed position and exercise limits for options on each of the Trust are 25,000 contracts. These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given the Trust's market capitalization, ADV, and high number of outstanding shares. The proposed position limit, and exercise limit, is consistent with the Act as it addresses concerns related to manipulation and protection of investors because, as demonstrated above, the position limit (and exercise limit) is extremely conservative and more than appropriate given the Trust is actively traded. In support of the proposed position and exercise limits for options on the Trust are 25,000 contracts, the Exchange is citing the in depth analysis ISE did in the ISE Approval. As noted above, in ISE Approval, ISE considered the: (1) Trust's market capitalization and ADV, and proposed position limit in relation to other securities; (2) market capitalization of the entire Ethereum market in terms of exercise risk and availability of deliverables; (3) proposed position limit by comparing it to position limits for derivative products regulated by the CFTC; and (4) supply of Ethereum. Based on the Exchange's review of these analyses, the Exchange believes that setting position and exercise limits for options on the Trust at 25,000 contracts is more than appropriate. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying as well as the Ethereum market.
                    <SU>51</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Trust options. As discussed above, 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 Unit options, including Trust options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on the Trust. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on the Trust in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Trust and, as appropriate, would review activity in the underlying Fund when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition, the Exchange has a Regulatory Services Agreement with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust.</P>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>52</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>53</SU>
                    <FTREF/>
                     In light of the foregoing, the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ethereum ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR, at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46941.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes the proposed rule change to exclude the Trust from being eligible for trading as FLEX options is consistent with the Act, because it will permit the Exchange to continue to participate in ongoing discussions with the Commission regarding appropriate position limits for ETF options.
                    <SU>54</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         The Exchange will submit a separate rule filing that would permit the Exchange to authorize for trading FLEX options on the Trust (which filing may propose changes to existing FLEX option position limits for such options if appropriate).
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that this proposal 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 applicable Exchange rules will require that customers receive appropriate disclosure before trading options in the Trust 
                    <SU>55</SU>
                    <FTREF/>
                     and will require that brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>56</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         
                        <E T="03">See</E>
                         Rules 9.1(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         
                        <E T="03">See</E>
                         Rule 9.3.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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 Trust options will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. The Rules that currently apply to the listing and trading of all Unit options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of 
                    <PRTPAGE P="16297"/>
                    the Trust options on the Exchange in the same manner as they apply to other options on all other Units that are listed and traded on the Exchange. Also, and as stated above, the Exchange already lists options on other commodity-based Units (including Bitcoin-based).
                    <SU>57</SU>
                    <FTREF/>
                     Further, the Trust would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other Unit for the Exchange to continue listing options on them.
                </P>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         
                        <E T="03">See</E>
                         Rule 4.3, Interpretation and Policy .06(a)(4).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposal to list and trade options on the Trust 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 the Trust 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. The Exchange notes that listing and trading Trust 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.</P>
                <P>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 Trust 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 
                    <SU>58</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>59</SU>
                    <FTREF/>
                     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 
                    <SU>60</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>61</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has waived the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>62</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>63</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing of options on the iShares Ethereum Trust.
                    <SU>64</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying iShares Ethereum Trust, including, among other things, information regarding trading volume, the number of shareholders, and the market capitalization of the iShares Ethereum Trust. The proposal also establishes position and exercise limits for options on the iShares Ethereum Trust and provides information regarding the surveillance procedures that will apply to iShares Ethereum Trust options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading iShares Ethereum Trust options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>65</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         
                        <E T="03">See</E>
                         ISE Approval, 
                        <E T="03">supra</E>
                         note 6.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CBOE-2025-025 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CBOE-2025-025. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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 
                    <PRTPAGE P="16298"/>
                    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-CBOE-2025-025 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>66</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06509 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>Release No. 34-102828; File No. SR-BOX-2025-08]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rules 3120 (Position Limits), 5020 (Criteria for Underlying Securities), and 5055 (FLEX Equity Options) to List and Trade Options on the iShares Ethereum Trust</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 10, 2025, 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.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The Exchange proposes to amend Rules 3120 (Position Limits), 5020 (Criteria for Underlying Securities), and 5055 (FLEX Equity Options) to list and trade options on the iShares Ethereum Trust (the “Trust”). 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 
                    <E T="03">https://rules.boxexchange.com/rulefilings</E>
                    .
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Rule 5020 regarding the criteria for underlying securities. Specifically, the Exchange proposes to amend Rule 5020(h) to allow BOX to list and trade options on Exchange-Traded Funds (“ETFs”) that represent interests in the Trust. This is a competitive filing based on a proposal recently submitted by Nasdaq ISE, LLC (“ISE”) and approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102798 (April 9, 2025) (Order Approving SR-ISE-2024-35, as modified by Amendment No. 1) (“ISE Approval Order”).
                    </P>
                </FTNT>
                <P>
                    Current Rule 5020(h) provides that, subject to certain other criteria set forth in that Rule, securities deemed appropriate for options trading include Exchange-Traded Fund Shares (“ETFs”), that represent certain types of interests and exchange-traded products (“ETPs”) structured as trusts that hold precious metals (which are deemed commodities), or Bitcoin (which is another crypto currency and deemed a commodity). In addition, Rule 5020(h)(1) requires that the Exchange-Traded Fund Shares must either (1) meet the criteria and guidelines set forth in paragraphs (a) and (b) of Rule 5020,
                    <SU>4</SU>
                    <FTREF/>
                     or (2) be 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 Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares, all as described in the Exchange-Traded Fund Shares' prospectus.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         Rule 5020(h)(1) provides for guidelines to be followed by the Exchange when evaluating potential underlying securities for BOX option transactions.
                    </P>
                </FTNT>
                <P>
                    The Exchange proposes to add the Trust to the list of ETFs on which BOX may list options in Rule 5020(h). The Shares are issued by the Trust, a Delaware statutory trust. The Trust will operate pursuant to a trust agreement (the “Trust Agreement”) between the Sponsor, BlackRock Fund Advisors (the “Trustee”) as the trustee of the Trust and will appoint Wilmington Trust, National Association, as Delaware Trustee of the Trust (the “Delaware Trustee”) by such time that the Registration Statement is effective. The Trust issues Shares representing fractional undivided beneficial interests in its net assets. The assets of the Trust will consist only of ether (“ether” or “ETH”) held by a custodian on behalf of the Trust, except under limited circumstances when transferred through the Trust's prime broker temporarily (described below), and cash. Neither the Trust, nor the Sponsor, nor the Ether Custodian (as defined below), nor any other person associated with the Trust will, directly or indirectly, engage in action where any portion of the Trust's ETH becomes subject to the Ethereum proof-of-stake validation or is used to earn additional ETH or generate income or other earnings. Coinbase Custody Trust Company, LLC (the “Ether Custodian”), is the custodian for the Trust's ether holdings, and maintains a custody account for the Trust (“Custody Account”); Coinbase, Inc. (the “Prime Execution Agent”), an affiliate of the Ether Custodian, is the prime broker for the Trust and maintains a trading account for the Trust (“Trading Account”); and The Bank of New York Mellon is the custodian for the Trust's cash holdings (the “Cash Custodian” and together with the Ether Custodian, the “Custodians”) and the administrator of the Trust (the “Trust Administrator”). Under the Trust Agreement, the Trustee may delegate all or a portion of its 
                    <PRTPAGE P="16299"/>
                    duties to any agent, and has delegated the bulk of the day-to-day responsibilities to the Trust Administrator and certain other administrative and record-keeping functions to its affiliates and other agents. The Trust is not an investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”). The investment objective of the Trust is to reflect generally the performance of the price of ether. The Trust seeks to reflect such performance before payment of the Trust's expenses and liabilities. The Shares are intended to constitute a simple means of making an investment similar to an investment in ether through the public securities market rather than by acquiring, holding and trading ether directly on a peer-to-peer or other basis or via a digital asset platform. The Shares have been designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in ether, while at the same time having an intrinsic value that reflects, at any given time, the investment exposure to the ether owned by the Trust at such time, less the Trust's expenses and liabilities. Although the Shares are not the exact equivalent of a direct investment in ether, they provide investors with an alternative method of achieving investment exposure to ether through the public securities market, which may be more familiar to them. An investment in the Shares is backed by ether held by the Ether Custodian on behalf of the Trust. All of the Trust's ether will be held in the Custody Account, other than the Trust's ether which is temporarily maintained in the Trading Account under limited circumstances, 
                    <E T="03">i.e.,</E>
                     in connection with creation and redemption Basket 
                    <SU>5</SU>
                    <FTREF/>
                     activity or sales of ether deducted from the Trust's holdings in payment of Trust expenses or the Sponsor's fee (or, in extraordinary circumstances, upon liquidation of the Trust). The Custody Account includes all of the Trust's ether held at the Ether Custodian, but does not include the Trust's ether temporarily maintained at the Prime Execution Agent in the Trading Account from time to time. The Ether Custodian will keep all of the private keys associated with the Trust's ether held in the Custody Account in “cold storage”.
                    <SU>6</SU>
                    <FTREF/>
                     The hardware, software, systems, and procedures of the Ether Custodian may not be available or cost-effective for many investors to access directly. The Exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot ether as well as a hedging vehicle to meet their investment needs in connection with ether products and positions. Similar to other commodity ETFs in which options may be listed on BOX (
                    <E T="03">e.g.</E>
                     SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, or the abrdn Gold ETF Trust),
                    <SU>7</SU>
                    <FTREF/>
                     the proposed ETF is a trust that essentially offers the same objectives and benefits to investors. Options on the Trust will trade in the same manner as options on other ETFs on BOX. Exchange Rules that currently apply to the listing and trading of all options on ETFs on BOX, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, position and exercise limits (with the proposed changes), margin requirements, customer accounts and trading halt procedures, will apply to the listing and trading of options on the Trust on BOX. Today, these rules apply to options on the various commodities ETFs deemed appropriate for options trading on BOX pursuant to Rule 5020(h).
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         The Trust issues and redeems Shares only in blocks of 40,000 or integral multiples thereof. A block of 40,000 Shares is called a “Basket.” These transactions take place in exchange for ether.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         The term “cold storage” refers to a safeguarding method by which the private keys corresponding to the Trust's ether are generated and stored in an offline manner, subject to layers of procedures designed to enhance security. Private keys are generated by the Ether Custodian in offline computers that are not connected to the internet so that they are more resistant to being hacked.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Rule 5020(h).
                    </P>
                </FTNT>
                <P>
                    The Exchange's initial listing standards for ETFs on which options may be listed and traded on BOX will apply to the Trust. Pursuant to Rule 5020(a), a security on which options may be listed and traded on BOX must be duly registered (with the Commission) and be an NMS stock (as defined in Rule 600 of Regulation NMS under the Securities Exchange Act of 1934, as amended (the “Act”)), and be characterized by a substantial number of outstanding shares that are widely held and actively traded.
                    <SU>8</SU>
                    <FTREF/>
                     Additionally, Rule 5020(h)(1) requires that ETFs must either (1) meet the criteria and standards set forth in Rules 5020(a) and (b),
                    <SU>9</SU>
                    <FTREF/>
                     or (2) be 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 Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares, all as described in the Exchange-Traded Fund Shares' prospectus. The Trust satisfies Rule 5020(h)(1), as it is subject to this creation and redemption process.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 5020(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Rules 5020(a) and (b) provide guidelines to be followed by the Exchange when evaluating potential underlying securities for BOX option transactions.
                    </P>
                </FTNT>
                <P>
                    Options on the Trust will be subject to the Exchange's continued listing standards set forth in Rule 5030(h) for ETFs and ETPs deemed appropriate for options trading pursuant to Rule 5020(h). Specifically, Rule 5030(h) provides that funds that were initially approved for options trading pursuant to 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 fund, if the fund ceases to be an NMS stock or if the fund is halted from trading in their primary market. In addition, options on funds may be subject to the suspension of opening transactions in any of the following circumstances: (1) in the case of options covering funds approved for trading under Rule 5020(h)(1)(i), in accordance with the terms of subparagraphs (b)(1),(2),(3) and (6) of Rule 5030; (2) in the case of options covering funds approved for trading under Rule 5020(h)(1)(ii) (as is the case for the Trust), following the initial twelve-month period beginning upon the commencement of trading in the fund on a national securities exchange and are defined as an NMS stock, there are fewer than 50 record and/or beneficial holders of such fund 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 ETFs 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 
                    <PRTPAGE P="16300"/>
                    dealing in such options on BOX inadvisable.
                </P>
                <P>
                    Options on the Trust will be physically settled contracts with American-style exercise.
                    <SU>10</SU>
                    <FTREF/>
                     Consistent with current Rule 5050, which governs the opening of options series on a specific underlying security (including ETFs and ETPs), the Exchange will open at least one expiration month for options on the Trust 
                    <SU>11</SU>
                    <FTREF/>
                     at the commencement of trading on BOX and may also list series of options on the Trust for trading on a weekly,
                    <SU>12</SU>
                    <FTREF/>
                     monthly,
                    <SU>13</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>14</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) that expire from twelve to one hundred eighty months from the time they are listed.
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Rule 5010 (Rights and Obligations of Holders and Writers), which provides that the rights and obligations of holders and writers of option contracts of any class of options dealt in on the Exchange shall be as set forth in the Rules of the Clearing Corporation. 
                        <E T="03">See also</E>
                         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: 
                        <E T="03">https://www.theocc.com/getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/occrules.pdf</E>
                        .
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See</E>
                         Rule 5050(b). The standard expirations are subject to certain listing criteria for underlying securities described within Rule 5020. Standard 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to 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. 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         IM-5050-6.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         IM-5050-13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See</E>
                         IM-5050-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Rule 5070.
                    </P>
                </FTNT>
                <P>
                    Pursuant to IM-5050-1(b), which governs strike prices of series of options on ETFs, the interval of strikes prices for series of options on the Ether Funds will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>16</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>17</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>18</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>19</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>20</SU>
                    <FTREF/>
                     Pursuant to Rule 7050, where the price of a series of a Trust 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.
                    <SU>21</SU>
                    <FTREF/>
                    Any and all new series of Trust 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.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, IM-5050-6, IM-5050-13, and IM-5050-4, specifically set forth intervals between strike prices on Quarterly Options Series, Short Term Option Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         IM-5050-2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         IM-5050-5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         IM-5050-3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Rule 5050(d)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         If options on the Ether Funds are eligible to participate in the Penny Interval Program, the minimum increment of $0.01 below $3.00 and $0.05 above $3.00 would apply. 
                        <E T="03">See</E>
                         Rule 7050(a)(3). 
                        <E T="03">See also</E>
                         Rule 7260 (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>Trust options will trade in the same manner as any other ETF options on BOX. The Exchange Rules that currently apply to the listing and trading of all ETF options on BOX, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Trust options on BOX in the same manner as they apply to other options on all other ETFs that are listed and traded on BOX, including the precious-metal and Bitcoin-backed commodity ETFs already deemed appropriate for options trading on BOX pursuant to current Rule 5020(h).</P>
                <P>Rule 5055 currently permits the Exchange to authorize for trading a FLEX Equity Option class on any equity security if it may authorize for trading a Non-FLEX Equity Option class on that equity security pursuant to Rule 5020. The proposed rule change amends Rule 5055 to exclude the Trust from this provision.</P>
                <P>
                    The Exchange also proposes to amend Rule 3120. Specifically, the Exchange proposes to amend IM-3120-2 to provide a position limit of 25,000 same side option contracts for Trust options. Additionally, pursuant to Rule 3140, the exercise limits for options on the Trust will be equivalent to this proposed position limit.
                    <SU>22</SU>
                    <FTREF/>
                     In considering the appropriate position and exercise limits for the Trust options, the Exchange reviewed the data in the ISE Approval Order. In the ISE Approval Order, ISE considered the Trust's market capitalization and average daily volume (“ADV”) against those of other underlying securities, as well as the proposed position and exercise limit in relation to other options. In measuring the Trust against other securities, ISE aggregated market capitalization and volume data for securities that have defined position limits utilizing data from The Options Clearing Corporations (“OCC”).
                    <SU>23</SU>
                    <FTREF/>
                     ISE also considered the trading volume for the Trust in terms of daily and notional volumes during the period of time the Trust has been trading from July 23, 2024 through December 14, 2024. The average daily volume for this time period is 5,302,533 shares and the average notional volume for this time period is $127,825,276.00. The Trust had 93,352 shareholders.
                    <SU>24</SU>
                    <FTREF/>
                     ISE indicated both the average daily volume and the average notional volume experienced an uptick at launch (which can be typical for anticipated product launches) then levelled off for several months. Renewed growth in the cryptocurrency market caused increased growth beginning in early November 2024. ISE reviewed the market capitalization and ADV of 3,930 options on single stock securities excluding ETFs.
                    <SU>25</SU>
                    <FTREF/>
                     Next, ISE aggregated this data based on market capitalization and ADV and grouped option symbols by position limit utilizing statistical thresholds for ADV and market capitalization for each position limit category (
                    <E T="03">i.e.</E>
                     25,000, 50,000 to 65,000, 75,000, 100,000 to less than 250,000, 250,000 to less than 500,000, 500,000 to 1,000,000 and greater than 1,000,000). Rule 3120 sets out position limits for various contracts. For example, like ISE, a 25,000 contract limit applies to those options having an underlying security that does not meet the requirements for a higher options contract limit. ISE indicated it performed this exercise to demonstrate the Trust's position limit relative to other options symbols in terms of market capitalization and ADV. For reference the market capitalization for the Trust was 1.16 billion 
                    <SU>26</SU>
                    <FTREF/>
                     with an ADV, for the preceding three months prior to October 22, 2024, of greater than 2.99 million shares. By comparison, other options symbols with similar 
                    <PRTPAGE P="16301"/>
                    market capitalization and ADV have a position limit of 50,000 contracts or 75,000 contracts.
                    <SU>27</SU>
                    <FTREF/>
                     From a 90-day ADV perspective, ISE reviewed statistics that indicated that the Trust had a 90-day ADV greater than each of the stocks in the 100,000 contracts to 249,000 contracts range. Therefore, the proposed 25,000 same side position and exercise limits for options on the Trust are conservative. Second, ISE reviewed the Trust's data relative to the market capitalization of the entire ether market in terms of exercise risk and availability of deliverables. Utilizing data as of October 22, 2024, there were 120,392,960 Ethereum in circulation. The price of Ethereum on October 22, 2024, was $2,620 per coin which equates to a market capitalization of greater than $315 billion US dollars. If a position limit of 25,000 options were considered (the position limit that would be typically assigned based upon data), the exercisable risk would represent less than 4.35237% of the outstanding shares of the Trust.
                    <SU>28</SU>
                    <FTREF/>
                     Since the Trust has a creation and redemption process managed through the issuer, the position limit sought can also be compared to the total market capitalization of the entire Ethereum market. In this case, the exercisable risk represented by 25,000 options on the Trust would be less than 0.03% of the market capitalization of all outstanding ether. Assuming a scenario where all 25,000 options on ether shares were exercised given the proposed 25,000 per same side position limit, this would have a virtually unnoticed impact on the entire ether market. This analysis demonstrates that the proposed 25,000 per same side position limit (and exercise limit) is conservative and appropriate for options on the Trust. Third, ISE reviewed the proposed position limit by comparing it to position limits for derivative products regulated by the Commodity Futures Trading Commission (“CFTC”). While the CFTC, through the relevant Designated Contract Markets, only regulates options positions based upon delta equivalents (creating a less stringent standard), ISE examined equivalent ether futures position limits. In particular, ISE looked at the CME Ethereum futures contract 
                    <SU>29</SU>
                    <FTREF/>
                     that has a position limit of 8,000 futures.
                    <SU>30</SU>
                    <FTREF/>
                     On October 22, 2024, CME ether futures settled at $2,629. Using a contract multiplier of $50, a position limit of 8,000 futures would have a notional value $1.0516 billion (8,000 × $50 × $2,629). Using an October 22, 2024, share price of $19.91 for shares of the Trust, a futures position of 8,000 contracts, with a notional value of $1.0516 billion dollars would equate to an options position of 528,176 contracts ($1.0516 billion (notional value of 8,000 Ethereum futures contracts)/$19.91 (price of the Trust shares) = 52,817,679 (Trust shares)/100 (the number of shares represented by one options contract)) = 528,176 options contracts. Because substantial sums of any distributed options portfolio are likely to be out of the money on expiration, an options position limit equivalent to the CME position limit for Ethereum (considering that all options deltas are &lt;=1.00) should be a bit higher than the CME implied 528,176 contract limit. The Exchange notes, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>31</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>32</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. Considering CME's position limits on futures for Ethereum, the Exchange believes that that the proposed same side position limits are more than appropriate for the Trust options.
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 3140(c).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         ISE represented these computations were based on OCC data from October 22, 2024, and that data displaying zero values in market capitalization or ADV were removed.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         ISE represented it obtained this number from Broadridge Financial Solutions, Inc. on December 19, 2024.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         The Trust has one asset and therefore is not comparable to a broad based ETF where there are typically multiple components.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         ISE acquired this figure as of October 22, 2024. 
                        <E T="03">See https://www.ishares.com/us/products/337614/ishares-ethereum-trust-etf.</E>
                         The global supply of ether grows each day ether are minted.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         ISE determined the median market capitalization for 50,000 contracts was 788,000,000 million and the median market capitalization for 75,000 contracts was 1,037,000 billion. Further, placing the Trust at 50,000 contracts would rank it in the 59th percentile in market capitalization and placing the Trust at 75,000 contracts would rank it in the 46th percentile in market capitalization.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         The 4.4% was calculated as follows: 2,500,000 (exercisable stock from position limit)/57,440,000 (shares outstanding on October 22, 2024) = 4.35237%.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         CME Ether Futures are described in Chapter 350 of CME's Rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook, Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    In analyzing the proposed position limit for options on the Trust, ISE also considered the supply of ether. Specifically, ISE examined the number of market participants with a position limit of 25,000 contracts that would need to exercise in unison to put the underlying asset under stress. In the case of options on ether, the proposed 25,000 same side position and exercise limit effectively restricts a market participant from holding positions that could be exercised in excess of 2,500,000 shares of the Trust. Utilizing data from October 22, 2024, the Trust had 57,440,000 shares outstanding, therefore 22.976 participants would have to simultaneously exercise their position limits in order to create a scenario that may put the underlying asset (shares of the Trust) under stress. ISE noted that historically, from observation only, it appears that no more than five market participants holding options positions in any single security have exercised in unison in any option. As unlikely an occurrence as all market participants exercising their positions in unison would be, if it were to occur, it should be noted that even such an occurrence would not likely put the Trust under stress as economic incentives, would induce the creation of more shares through the ETF creation and redemption process. Further, given that the current global supply of Ethereum, the underlying asset of the Trust, is 120,392,960 
                    <SU>33</SU>
                    <FTREF/>
                     coins and each Ethereum coin can currently be exchanged (Ethereum to USD and then USD to Trust shares) for 131.6 shares of the Trust another 15,843,979,598 shares of the Trust could be created by the underlying ETF. In addition, as of October 22, 2024, a 25,000 contract position limit for options on the Trust would represent less than 4.3524% of the outstanding shares of the Trust (2,500,000 (position limit exercise)/57,440,000 (shares outstanding of the Trust on October 22, 2024)) = 4.3524%.
                    <SU>34</SU>
                    <FTREF/>
                     Also, as of October 22, 2024, a 25,000 contract position limit for options on the Trust would represent less than 0.01578% of the global supply of ether (2,500,000 (position limit exercise)/120,392,960 (number of ether) × 131.6 (Trust shares per ether)) = 0.01578%.
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         This figure was acquired as of October 22, 2024. 
                        <E T="03">See https://www.ishares.com/us/products/337614/ishares-ethereum-trust-etf.</E>
                         The global supply of ether grows each day ether are minted.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">See https://coinmarketcap.com/currencies/ethereum/.</E>
                    </P>
                </FTNT>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for 
                    <PRTPAGE P="16302"/>
                    options. The Exchange intends to apply those same program procedures to options on the Trust that it applies to the Exchange's other options products, including options on ETFs.
                    <SU>35</SU>
                    <FTREF/>
                     The Exchange would also review activity in the underlying Trust when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. As such, the Exchange would be able to obtain information regarding trading in shares of the Trust from their primary listing markets and from other markets that trade shares of the Trust through ISG. In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”) for certain market surveillance, investigation and examinations functions. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate amongst themselves and FINRA responsibilities to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>36</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         The surveillance program includes surveillance patterns for price and volume movements as well as patterns for potential manipulation (
                        <E T="03">e.g.,</E>
                         spoofing and marking the close).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         Section 19(g)(1) of the Act, among other things, requires every self-regulatory organization (“SRO”) registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, including the Trust (“Ethereum ETP Approval Order”),
                    <SU>37</SU>
                    <FTREF/>
                     “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the [CME] via their common membership in ISG. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME Ethereum futures market.” 
                    <SU>38</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>39</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Trust,
                    <SU>40</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust.
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937, 46941 (May 30, 2024) (File Nos. SR-NYSEARCA-2023-70; SR-NYSEARCA-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, To List and Trade Shares of Ether-Based Exchange-Traded Products).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, at 46938 (footnotes excluded).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on the Trust will be available via Options Price Reporting Authority (“OPRA”) and major market data vendors. The Exchange has also analyzed its capacity and represents that it believes BOX 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 the Trust up to the number of expirations currently permissible under the Rules.</P>
                <P>
                    The Exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of Ethereum and hedging vehicle to meet their investment needs in connection with Ethereum -related products and positions. The Exchange expects investors will transact in options on the Trust in the unregulated over-the-counter (“OTC”) options market,
                    <SU>41</SU>
                    <FTREF/>
                     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 positions; (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 Trust options may cause investors to bring this liquidity to BOX, would increase market transparency and enhance the process of price discovery conducted on BOX through increased order flow. The ETFs that hold financial instruments, money market instruments, precious metal commodities, or Bitcoin on which BOX may already list and trade options are trusts structured in substantially the same manner as the Trust 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 (
                    <E T="03">i.e.,</E>
                     precious metals and Bitcoin) that it currently lists and trades on BOX. Finally, the Exchange notes that applicable Exchange rules will require that customers receive appropriate disclosure before trading options in the Trust.
                    <SU>42</SU>
                    <FTREF/>
                     Further, brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>43</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See</E>
                         Rules 4020(b), (e) and 4100.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         Rule 4040.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Act 
                    <SU>44</SU>
                    <FTREF/>
                     in general, and Section 6(b)(5) of the Act,
                    <SU>45</SU>
                    <FTREF/>
                     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 
                    <PRTPAGE P="16303"/>
                    and a national market system, and, in general to protect investors and the public interest. Specifically, the Exchange believes that the proposal to list and trade options on the Trust 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 the Trust will provide investors with a greater opportunity to realize the benefits of utilizing options on an ETF based on spot Ethereum, including cost efficiencies and increased hedging strategies. The Exchange believes that offering options on a competitively priced ETF based on spot Ethereum will benefit investors by providing them with an additional, relatively lower-cost risk management tool, allowing them to manage, more easily, their positions and associated risks in their portfolios in connection with exposure to spot Ethereum. Additionally, the Exchange's offering of Trust 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 BOX through increased order flow to the benefit of all investors. Today, BOX lists options on other commodity ETFs structured as a trust, which essentially offer the same objectives and benefits to investors, and for which the Exchange has not identified any issues with the continued listing and trading of options on those ETFs.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <P>The Exchange also believes the proposal to permit options on the Trust will remove impediments to and perfect the mechanism of a free and open market and a national market system, because options on the Trust will comply with current Exchange Rules. Options on the Trust must satisfy the initial listing standards and continued listing standards currently in the Rules, applicable to options on all ETFs, including options on other commodity ETFs already deemed appropriate for options trading on BOX pursuant to Rule 5020(h). Additionally, as demonstrated above, the Trust is characterized by a substantial number of shares that are widely held and actively traded. Further, Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (as proposed herein), and margin requirements, will govern the listing and trading of options on the Trust.</P>
                <P>
                    The Exchange believes the proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits for options on each of the Trust are 25,000 contracts. These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given the Trust's market capitalization, ADV, and high number of outstanding shares. The proposed position limit, and exercise limit, is consistent with the Act as it addresses concerns related to manipulation and protection of investors because, as demonstrated above, the position limit (and exercise limit) is extremely conservative and more than appropriate given the Trust is actively traded. In support of the proposed position and exercise limits for options on the Trust are 25,000 contracts, the Exchange is citing the in depth analysis ISE did in the ISE Approval Order. As noted above, in the ISE Approval Order, ISE considered the: (1) Trust's market capitalization and ADV, and proposed position limit in relation to other securities; (2) market capitalization of the entire Ethereum market in terms of exercise risk and availability of deliverables; (3) proposed position limit by comparing it to position limits for derivative products regulated by the CFTC; and (4) supply of Ethereum. Based on the Exchange's review of these analyses, the Exchange believes that setting position and exercise limits for options on the Trust at 25,000 contracts is more than appropriate. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying as well as the Ethereum market.
                    <SU>46</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Trust options. As discussed above, 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 ETFs, including Trust options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on the Trust. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on the Trust in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Trust and, as appropriate, would review activity in the underlying Fund when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition, the Exchange has a Regulatory Services Agreement with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust.</P>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>47</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the 
                    <PRTPAGE P="16304"/>
                    Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>48</SU>
                    <FTREF/>
                     In light of the foregoing, the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ethereum ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46941.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes the proposed rule change to exclude the Trust from being eligible for trading as FLEX Equity Options is consistent with the Act, because without this prohibition, trading a FLEX Equity Option in the Trust would otherwise establish different position and exercise limits than those proposed herein.
                    <SU>49</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         The Exchange may submit a separate rule filing that would permit the Exchange to authorize for trading FLEX Equity Options on the Trust (which filing may propose changes to existing FLEX Equity Option position limits for such options if appropriate).
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that this proposal 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 applicable Exchange rules will require that customers receive appropriate disclosure before trading options in the Trust 
                    <SU>50</SU>
                    <FTREF/>
                     and will require that brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>51</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See</E>
                         Rules 4020(b), (e) and 4100.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         
                        <E T="03">See</E>
                         Rule 4040.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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 a filing submitted by ISE that was recently approved by the Commission.
                    <SU>52</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See supra</E>
                         note 3.
                    </P>
                </FTNT>
                <P>
                    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 Trust options will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. The Rules that currently apply to the listing and trading of all ETF options on BOX, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of the Trust options on BOX in the same manner as they apply to other options on all other ETFs that are listed and traded on BOX. Also, and as stated above, BOX already lists options on other commodity-based ETFs (including Bitcoin-based).
                    <SU>53</SU>
                    <FTREF/>
                     Further, the Trust would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other ETF for BOX to continue listing options on them.
                </P>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         
                        <E T="03">See</E>
                         Rule 5020(h).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposal to list and trade options on the Trust 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 the Trust options trading on BOX may make BOX a more attractive marketplace to market participants at other exchanges, such market participants are free to elect to become market participants on BOX. The Exchange notes that listing and trading Trust options on BOX 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 BOX 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 Trust options for trading on BOX 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.</P>
                <P>The proposed rule change to exclude options on the Trust from being eligible for trading as FLEX Equity Options does not impose an undue burden on intermarket competition because discussions with the Commission regarding appropriate position limits for ETF options are ongoing. Finally, the proposed rule change to exclude options on the Trust from being eligible for trading as FLEX Equity Options does not impose an undue burden on intramarket competition because no BOX Participant will be allowed to transact a FLEX Equity Option on the Trust.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange has neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 
                    <SU>54</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>55</SU>
                    <FTREF/>
                     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 
                    <SU>56</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>57</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has waived the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>58</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>59</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing of options on the iShares 
                    <PRTPAGE P="16305"/>
                    Ethereum Trust.
                    <SU>60</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying iShares Ethereum Trust, including, among other things, information regarding trading volume, the number of shareholders, and the market capitalization of the iShares Ethereum Trust. The proposal also establishes position and exercise limits for options on the iShares Ethereum Trust and provides information regarding the surveillance procedures that will apply to iShares Ethereum Trust options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading iShares Ethereum Trust options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>61</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         
                        <E T="03">See</E>
                         ISE Approval Order, 
                        <E T="03">supra</E>
                         note 3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number
                </P>
                <P>SR-BOX-2025-08 on the subject line.</P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-BOX-2025-08. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-2025-08 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>62</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>62</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06506 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102835; File No. SR-CboeEDGX-2025-030]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rules To List and Trade Options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 10, 2025, Cboe EDGX Exchange, Inc. (“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 Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe EDGX Exchange, Inc. (the “Exchange” or “EDGX”) proposes to amend its Rules to allow the Exchange to list and trade options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF. The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/options/regulation/rule_filings/edgx/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>
                    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 
                    <PRTPAGE P="16306"/>
                    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.
                </P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Rule 19.3 regarding the criteria for underlying securities. Specifically, the Exchange proposes to amend Rule 19.3(i)(4) to allow the Exchange to list and trade options on shares or other securities (“Fund Shares”) that are principally traded on a national securities exchange and are defined as an “NMS stock” under Rule 600 of Regulation NMS and that represent interests in the Grayscale Ethereum Trust ETF (the “Grayscale Fund”), the Grayscale Ethereum Mini Trust ETF (the “Grayscale Mini Fund”), and the Bitwise Ethereum ETF (the “Bitwise Fund” and, collectively, the “Ethereum Funds”).
                    <SU>5</SU>
                    <FTREF/>
                     This is a competitive filing based on a similar proposal submitted by NYSE American, LLC (“NYSE American”), which was recently approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>6</SU>
                    <FTREF/>
                     Current Rule 19.3(i) provides that, subject to certain other criteria set forth in that Rule, securities deemed appropriate for options trading include Fund Shares that represent certain types of interests,
                    <SU>7</SU>
                    <FTREF/>
                     including interests in certain specific trusts that hold financial instruments, money market instruments, precious metals (which are deemed commodities), or Bitcoin (which is another crypto currency and deemed a commodity). In addition, Rule 19.3(i) requires that Fund Shares meet the criteria and standards set forth in Rule 19.3(a) and (b),
                    <SU>8</SU>
                    <FTREF/>
                     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 Fund Shares 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.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; and SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ethereum ETP Approval Order”); and 100541 (July 17, 2024), 89 FR 59786 (July 23, 2024) (SR-NYSEArca-2024-44; and SR-NYSEArca-2024-53) (Order Granting Approval of Proposed Rule Changes To List and Trade Shares of the Grayscale Ethereum Mini Trust and ProShares Ethereum ETF).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 99306 (August 7, 2024), 89 FR 65957 (August 13, 2024) (SR-NYSEAMER-2024-45), as amended by Amendment No. 1 (February 5, 2025) [sic]; and Securities Exchange Act Release No. 102799 (“NYSE American Approval”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i), which permits options trading on Fund Shares that (1) represent interests in registered investment companies (or series thereof) organized as open-end management investment companies, unit investment trusts or similar entities, and that hold portfolios of securities comprising or otherwise based on or representing investments in indexes or portfolios of securities (or that hold securities in one or more other registered investment companies that themselves hold such portfolios of securities) (“Funds ”) and/or financial instruments including, but not limited to, stock index futures contracts, options on futures, options on securities and indexes, 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”) constituting or otherwise based on or representing an investment in an index or portfolio of securities and/or Financial Instruments and Money Market Instruments, or (2) 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 (3) represent interests in a trust or similar entity that holds a specified non-U.S. currency or currencies 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 (4) represent interests in the SPDR Gold Trust or are issued by the iShares COMEX Gold Trust or iShares Silver Trust, the Aberdeen Standard Physical Silver Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Physical Palladium Trust, the Aberdeen Standard Physical Platinum Trust, the Sprott Physical Gold Trust, the Goldman Sachs Physical Gold ETF, or the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Rule 19.3(a) and (b) sets forth the criteria that underlying securities must satisfy for option contracts on those underlying securities to be eligible for listing and trading on the Exchange.
                    </P>
                </FTNT>
                <P>
                    The Ethereum Funds are Ethereum-backed commodity ETFs structured as trusts. Similar to any Fund Share currently deemed appropriate for options trading under Rule 19.3(i), the investment objective of each Ethereum Fund is for its shares to reflect the performance of Ethereum (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to Ethereum without the complexities of Ethereum delivery. As is the case for Fund Shares currently deemed appropriate for options trading, a Ethereum Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of Ethereum and are designed to track Ethereum or the performance of the price of Ethereum and offer access to the Ethereum market.
                    <SU>9</SU>
                    <FTREF/>
                     The Ethereum Funds provide investors with cost-efficient alternatives that allow a level of participation in the Ethereum market through the securities market. The Ethereum Funds are similar to the Bitcoin Funds, except that those funds hold Bitcoin (another cryptocurrency) rather than Ethereum, which are already eligible for options trading on the Exchange (
                    <E T="03">i.e.,</E>
                     the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF).
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange's initial listing standards for Fund Shares on which options may be listed and traded on the Exchange will apply to the Ethereum Funds. Pursuant to Rule 19.3(a), a security (which includes a Fund Share) on which options may be listed and traded on the Exchange must be registered (with the Commission) and be an NMS stock (as defined in Rule 600 of Regulation NMS under the Securities Exchange Act of 1934, as amended (the “Act”)), and be characterized by a substantial number of outstanding shares that are widely held and actively traded.
                    <SU>10</SU>
                    <FTREF/>
                     Additionally, Rule 19.3(i)(1) requires that Fund Shares either (1) meet the criteria and standards set forth in Rule 19.3(a) and (b),
                    <SU>11</SU>
                    <FTREF/>
                     or (2) are available for creation or redemption each business day in cash or in kind from the investment company, commodity pool or other entity at a price related to net asset value, and the investment company, commodity pool or other entity is obligated to provide that Fund Shares may be created even if some or all of the securities and/or 
                    <PRTPAGE P="16307"/>
                    cash required to be deposited have not been received by the Fund, the unit investment trust or the management investment company, provided the authorized creation participant has undertaken to deliver the securities and/or cash as soon as possible and such undertaking is secured by the delivery and maintenance of collateral consisting of cash or cash equivalents satisfactory to the Fund, all as described in the Fund's or unit trust's prospectus. Each Ethereum Fund satisfies Rule 19.3(i)(1)(B), as each is subject to this creation and redemption process.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 19.3(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         Rule 19.3(a) and (b) sets forth the criteria an underlying security must meet for the Exchange to be able to list options on the underlying.
                    </P>
                </FTNT>
                <P>
                    While not required by the Rules for purposes of options listings, the Exchange believes the Ethereum Funds satisfies the criteria and guidelines set forth in Rule 19.3(a) and (b). Pursuant to Rule 19.3(a), a security (which includes a Fund Share) 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.
                    <SU>12</SU>
                    <FTREF/>
                     Each of the Ethereum Funds is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>13</SU>
                    <FTREF/>
                     Further, the Exchange believes each Ethereum Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 19.3(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>With respect to the Grayscale Fund, the Grayscale Mini Fund, and the Bitwise Fund, the Exchange reviewed the data presented by NYSE American in its filing with respect to shares outstanding (and corresponding market capitalization), number of beneficial holders, and trading volume. As of November 29, 2024, the Ethereum Funds had the following number of shares outstanding (and corresponding market capitalization):</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s100,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Shares
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">
                            Market value
                            <LI>(11/29/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>$5,425,852,635</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>1,547,003,157</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>430,886,200</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As shown above, each of the Ethereum Funds had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to Rule 19.3(b).
                    <SU>14</SU>
                    <FTREF/>
                     The Exchange believes this demonstrates that each Ethereum Fund is characterized by a substantial number of outstanding shares. Further, the below table contains information regarding the number of beneficial holders of the Ethereum Funds as of December 31, 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         The Exchange notes that on November 19, 2024, the Grayscale Mini Fund underwent a reverse stock split, reducing the number of shares outstanding—and increasing the share price—tenfold.
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s25,10">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Beneficial
                            <LI>holders</LI>
                            <LI>(as of</LI>
                            <LI>12/31/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>112,320</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>17,396</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>5,992</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As this table shows, each Ethereum Fund has significantly more than 2,000 beneficial holders (approximately 56, 9, and 3 times more, respectively), which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to pursuant to Rule 19.3(b).
                    <SU>15</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the shares of each Ethereum Fund are widely held.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         The number of beneficial holders of the Grayscale Mini Fund may have been impacted by the 10:1 reverse stock split, as investors with fewer than 10 shares would have received a cash payout. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes that, based on trading volume since the Ethereum Funds began trading on July 23, 2024, shares of the Ethereum Funds are actively traded. In particular, the table below sets forth the total trading volume (by shares and notional) from the inception of trading through either November 29, 2024 (for the Grayscale Fund and the Grayscale Mini Fund) or December 31, 2024 (for the Bitwise Fund). In addition, the below table illustrates the average daily volume (“ADV”) over the 30-day period of either October 29, 2024—through November 29, 2024 (for the Grayscale Fund and the Grayscale Mini Fund) or November 29, 2024—through December 31, 2024 (for the Bitwise Fund).
                    <SU>16</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31/24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,15,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Trading volume 
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Trading volume 
                            <LI>(notional $)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV 
                            <LI>(shares)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>427,312,540</ENT>
                        <ENT>$10,289,781,199</ENT>
                        <ENT>4,237,811</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>172,400,020</ENT>
                        <ENT>4,614,428,230</ENT>
                        <ENT>3,065,796</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>44,477,060</ENT>
                        <ENT>959,491,343</ENT>
                        <ENT>291,627</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As demonstrated above, even though the Ethereum Funds have been trading for less than one year, the trading volume for each Ethereum Fund is substantially higher than 2,400,000 shares (roughly 178, 72, and 16 times that amount), which is the minimum 12-month volume the Exchange generally requires for a security in order to list options on that security as set forth in Rule 19.3(b). The Exchange believes this data demonstrates each Ethereum Fund is characterized by a substantial number of outstanding shares that are actively traded.</P>
                <P>
                    Options on the Ethereum Funds will be subject to the Exchange's continued listing standards set forth in Rule 19.4(g) for Fund Shares deemed appropriate for options trading pursuant to Rule 19.3(i). 
                    <PRTPAGE P="16308"/>
                    Specifically, 19.4(g) provides that Fund Shares that were initially approved for options trading pursuant to Rule 19.3 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 Fund Shares if the security ceases to be an NMS stock (see Rule 19.4(b)(4)). Additionally, the Exchange will not open for trading any additional series of option contracts of the class covering Fund Shares in any of the following circumstances: (1) in the case of options covering Fund Shares approved for trading under Rule 19.3(i)(4)(A), in accordance with the terms of Rule 19.4(b)(1), (2) and (3); (2) in the case of options covering Fund Shares approved pursuant to Rule 19.3(i)(4)(B), following the initial 12-month period beginning upon the commencement of trading in the Fund Shares on a national securities exchange and are defined as NMS stock under Rule 600 of Regulation NMS, there were fewer than 50 record and/or beneficial holders of such Fund Shares for 30 consecutive days; (3) the value of the index, non-U.S. currency, 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 or Money Market Instruments, or portfolio of securities on which the 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.
                </P>
                <P>
                    Options on each Ethereum Fund will be physically settled contracts with American-style exercise.
                    <SU>17</SU>
                    <FTREF/>
                     Consistent with current Rule 19.6, which governs the opening of options series on a specific underlying security (including Fund Shares), the Exchange will open at least one expiration month for options on Ethereum Funds 
                    <SU>18</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on any Ethereum Fund for trading on a weekly,
                    <SU>19</SU>
                    <FTREF/>
                     monthly,
                    <SU>20</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>21</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) that expire from 12 to 39 months from the time they are listed.
                    <SU>22</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Rule 19.2, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">and</E>
                         Equity Options Product Specifications January 3, 2024), available at Equity Options Specifications (cboe.com); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6(b). The monthly expirations are subject to certain listing criteria for underlying securities described within Rule 19.3. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Rule 19.6(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. 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .05.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .08.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 19.8.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rule 19.6, Interpretation and Policy .01, which governs strike prices of series of options on Fund Shares, the interval of strikes prices for series of options on Ethereum Funds will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>23</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>24</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>25</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>26</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>27</SU>
                    <FTREF/>
                     Pursuant to Rule 21.5, where the price of a series of an Ethereum Fund 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.
                    <SU>28</SU>
                    <FTREF/>
                     Any and all new series of Ethereum Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 19.6 and 21.5, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Rule 19.6, Interpretations and Policies .05, .08, and .04 specifically sets forth intervals between strike prices on Quarterly Options Series, Short Term Option Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .06.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6(d)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         If options on an Ethereum Fund 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. 
                        <E T="03">See</E>
                         Rule 21.5(e) (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>
                    Ethereum Fund options will trade in the same manner as any other Fund Share options on the Exchange. The Exchange Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Ethereum Funds options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange, including the precious-metal backed commodity Fund Shares and the Bitcoin Funds already deemed appropriate for options trading on the Exchange pursuant to current Rule 19.3(i).
                    <SU>29</SU>
                    <FTREF/>
                     Position and exercise limits for options on ETFs, including options on Ethereum Funds, are determined pursuant to Rules 18.7 and 18.9.
                    <SU>30</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See, e.g.,</E>
                         SPDR Gold Trust, iShares COMEX Gold Trust or iShares Silver Trust, the Aberdeen Standard Physical Silver Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Physical Palladium Trust, the Aberdeen Standard Physical Platinum Trust, the Sprott Physical Gold Trust, the Goldman Sachs Physical Gold ETF or the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         Rule 18.7(a)(1) provides that no Options Member shall make, for any account in which it has any interest or for the account of any Customer, an opening transaction on any exchange if the Options Member has reason to believe that as a result of such transaction the Options Member or its Customer would, acting alone or in concert with others, directly or indirectly, exceed the applicable position limit fixed by Cboe Exchange, Inc. (“Cboe Options”). Rule 18.9(a)(1) provides that no Options Member shall exercise, for any account in which it has an interest or for the account of any Customer, a long position in any options contract where such Options Member or Customer, acting alone or in concert with others, directly or indirectly, has or will have exceeded the applicable exercise limit fixed from time to time by Cboe Options for any options contract traded on EDGX Options and Cboe Options. 
                        <E T="03">See also</E>
                         Cboe Options Rules 8.30 and 8.42.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rules 18.7 and 18.9, the position and exercise limits, respectively, for Ethereum Fund options will be 25,000 same side option contracts.
                    <SU>31</SU>
                    <FTREF/>
                     The Exchange believes 
                    <PRTPAGE P="16309"/>
                    these proposed position and exercise limits are reasonable and appropriate. In considering the appropriate position and exercise limits for the Ethereum Funds, the Exchange reviewed the data presented by NYSE American in its filing with respect to the Bitwise Fund, the Grayscale Fund and the Grayscale Mini Fund.
                    <SU>32</SU>
                    <FTREF/>
                     NYSE American aggregated market capitalization, volume, and shares outstanding data of the Ethereum Funds and compared that data to those of other ETFs, and compared the proposed position limit of the Ethereum Funds to the position limits of the options overlying those other ETFs. The Exchange reviewed NYSE American's data that demonstrated that each of these three Ethereum Funds would easily qualify for much higher position limits available to other ETFs and ETPs pursuant to the criterion in Cboe Options Rule 8.30, Interpretation and Policy .02 (which governs position limits on the Exchange pursuant to Rule 18.7).
                    <SU>33</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         Rule 18.7(a)(1) provides that no Options Member shall make, for any account in which it has any interest or for the account of any Customer, an opening transaction on any exchange if the Options Member has reason to believe that as a result of such transaction the Options Member or its Customer would, acting alone or in concert with others, directly or indirectly, exceed the applicable position limit fixed by Cboe Exchange, Inc. (“Cboe Options”). Cboe Options currently has a nearly identical rule filing pending with the Commission to amend Cboe Options Rule 8.30, Interpretation and Policy .10 (and Cboe Options Rule 8.42) to establish a position and exercise limit for Ethereum 
                        <PRTPAGE/>
                        Fund options of 25,000 (“Cboe Ethereum Fund Proposal”). If the Commission approves the Cboe Ethereum Fund Proposal, the position and exercise limits in that filing would then apply to the Exchange.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         NYSE American Approval.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         Cboe Options Rule 8.30, Interpretation and Policy .02; Exchange Rule 18.7.
                    </P>
                </FTNT>
                <P>
                    Cboe Options Rule 8.30, Interpretation and Policy .02 sets forth position (and exercise) limits for options, which vary according to the number of shares outstanding and the amount of trading in underlying during the most recent six-month period.
                    <SU>34</SU>
                    <FTREF/>
                     As demonstrated below, the trading volume in each Fund for the time periods specified in the following table is sufficient to qualify each Fund for position limits in excess of the proposed 25,000-contract limit.
                    <SU>35</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">See</E>
                         Cboe Options Rule 8.30, Interpretation and Policy .02; Exchange Rule 18.7.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31,24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s25,18">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">Total volume</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>
                            427,312,540 
                            <LI>(7/23/24-11/29/24)</LI>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>
                            172,400,020 
                            <LI>(7/23/24-11/29/24)</LI>
                        </ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>
                            44,477,060 
                            <LI>(7/23/24-12/31/24)</LI>
                        </ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    Based on this trading volume during these time periods, the most-recent trading volume in the Grayscale Fund and the Grayscale Mini Fund set forth in the NYSE American well exceeds the requisite minimum of 100,000,000 shares necessary to qualify for the 250,000-contract position and exercise limits.
                    <SU>36</SU>
                    <FTREF/>
                     By comparison, the underlying of other options with six-month trading volume less than the volumes in the table above are eligible for position and exercise limits of at least 250,000.
                    <SU>37</SU>
                    <FTREF/>
                     Further, the trading volume during this time period for the Bitwise Fund set forth in the NYSE American well exceeded the requisite minimum of 40,000,000 shares necessary to qualify for the 75,000-contract position (and exercise) limit, which is three times the proposed 25,000-contract limit.
                    <SU>38</SU>
                    <FTREF/>
                     Finally, the proposed 25,000-contract position limit is the default for options that do not otherwise qualify for a higher limit and is therefore an adequate limit for each Ethereum Fund.
                    <SU>39</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         Cboe Options Rule 8.30, Interpretation and Policy .02(e) states that to be eligible for the 250,000 option contract limit, either the most recent six-month trading volume of the underlying security must have totaled at least 100,000,000 shares; or the most recent six-month trading volume of the underlying security must have totaled at least 75,000,000 shares and the underlying security must have at least 300,000,000 currently outstanding.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">See https://www.theocc.com/Market-Data/Market-Data-Reports/Series-and-Trading-Data/Series-Search</E>
                         (including the following symbols that have a position limit of 250,000: GLD, IAU, SLV, SIVR, SGOL).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         Cboe Options Rule 8.30, Interpretation and Policy .02(c) states that to be eligible for the 75,000 option contract limit, either the most recent six-month trading volume of the underlying security must have totaled at least 40,000,000 shares; or the most recent six-month trading volume of the underlying security must have totaled at least 30,000,000 shares and the underlying security must have at least 120,000,000 currently outstanding.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         Cboe Options Rule 8.30, Interpretation and Policy .02(a) states that the 25,000 option contract limit applies to those options having an underlying security that does not meet the requirements for a higher option contract limit.
                    </P>
                </FTNT>
                <P>Second, with respect to the outstanding shares of these three Ethereum Funds, the Exchange reviewed NYSE American's data regarding the outstanding shares of each of these Ethereum Funds. NYSE American performed an exercise to demonstrate that if a market participant held the maximum number of contracts possible pursuant to the proposed position and exercise limits (25,000 contracts), the equivalent shares represented by the proposed position and exercise limits (2,500,000 shares) would represent the following approximate percentage of outstanding shares as of November 29, 2024:</P>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,12,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Proposed 
                            <LI>position/</LI>
                            <LI>exercise </LI>
                            <LI>limits in </LI>
                            <LI>equivalent shares</LI>
                        </CHED>
                        <CHED H="1">
                            Outstanding 
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage 
                            <LI>of outstanding </LI>
                            <LI>shares</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>1.4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>5.5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>15.1</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As this table demonstrates, if a market participant held the maximum permissible options positions in one of the Ethereum Fund options and exercised all of them at the same time, that market participant would control a small percentage of the outstanding shares of the underlying Ethereum Fund. For example, as noted above, a position limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the applicable Ethereum Fund (if that market participant exercised all its options). NYSE American used the number of shares outstanding for each Ethereum Fund as of November 29, 2024, and calculated the approximate number of market participants that could hold the maximum of 25,000 same side positions in each Ethereum Fund that would equate to the number of shares outstanding of that Ethereum Fund:</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,10,10">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Outstanding 
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Number of 
                            <LI>market </LI>
                            <LI>participants </LI>
                            <LI>with 25,000 </LI>
                            <LI>same side </LI>
                            <LI>positions</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>71</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>18</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>7</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    This means if 71 market participants had 25,000 same side positions in 
                    <PRTPAGE P="16310"/>
                    options on the Grayscale Fund, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. Similarly, this means if 18 market participants had 25,000 same side positions in options on the Grayscale Mini Fund, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. Finally, this means if 7 market participants had 25,000 same side positions in options on the Bitwise Fund, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. The Exchange believes it is highly unlikely for this to occur; however, even if such event did occur, the Exchange would not expect any of the Ethereum Fund to be under stress because such an event would merely induce the creation of more shares through the trust's creation and redemption process.
                </P>
                <P>
                    NYSE American also performed an exercise to compare the size of the proposed position limit to the market capitalization of the Ethereum market given that the issuer of each of these three Ethereum Funds may create and redeem shares that represent an interest in Ethereum. NYSE American took the global supply of Ethereum, which was 120.44 million and the price of one Ethereum, which was approximately $3,593.49,
                    <SU>40</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $439.78 billion. Consider the proposed position and exercise limit of 25,000 option contracts for each Ethereum Fund option. A position and exercise limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the Grayscale Fund, Grayscale Mini Fund, and Bitwise Fund, as applicable (if that market participant exercised all its options). NYSE American considered the share price of each Ethereum Fund on November 29, 2024 and calculated the value of 2,500,000 shares of the Ethereum Fund at that price, and the approximate percentage of that value of the size of the Ethereum market:
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See https://finance.yahoo.com/quote/ETH-USD/history.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,12,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Share price 
                            <LI>($)</LI>
                        </CHED>
                        <CHED H="1">
                            Value of 
                            <LI>2,500,000 </LI>
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage of 
                            <LI>ethereum </LI>
                            <LI>market</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>30.15</ENT>
                        <ENT>75,250,000</ENT>
                        <ENT>0.017</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>33.84</ENT>
                        <ENT>84,600,000</ENT>
                        <ENT>0.020</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>25.80</ENT>
                        <ENT>64,500,000</ENT>
                        <ENT>0.015</ENT>
                    </ROW>
                </GPOTABLE>
                <P>Therefore, if a market participant with the maximum 25,000 same side contracts in options on the Grayscale Fund, the Grayscale Mini Fund, or the Bitwise Fund exercised all positions at one time, such an event would have no practical impact on the Ethereum market.</P>
                <P>The Exchange also reviewed NYSE American's data regarding the market capitalization of each of these three Ethereum Funds relative to the market capitalization of the entire Ethereum market, as of November 29, 2024:</P>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s50,15,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1">
                            Ethereum/shares 
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">
                            Market value 
                            <LI>($)</LI>
                        </CHED>
                        <CHED H="1">
                            % of Total 
                            <LI>Ethereum market</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Total Ethereum Market</ENT>
                        <ENT>120,440,000</ENT>
                        <ENT>432,799,935,600</ENT>
                        <ENT>100</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>5,425,852,635</ENT>
                        <ENT>1.25</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>1,547,003,157</ENT>
                        <ENT>0.36</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>430,886,200</ENT>
                        <ENT>0.10</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As this data gathered by NYSE American demonstrates, the Ethereum Funds collectively represent approximately 1.71% of the global supply of Ethereum (120,440,000).
                    <SU>41</SU>
                    <FTREF/>
                     Based on the $30.15 price of a Grayscale Fund share on November 29, 2024, a market participant could have redeemed one Ethereum for approximately 119 Grayscale Fund shares. Another 14,354,890,070 Grayscale Fund shares could be created before the supply of Ethereum was exhausted. As a result, 5,742 market participants would have to simultaneously exercise 25,000 same side positions in Grayscale Fund options to receive shares of the Grayscale Fund holding the entire global supply of Ethereum. Similarly, based on the $33.84 price of a Grayscale Mini Fund share on November 29, 2024, a market participant could have redeemed one Ethereum for approximately 106 Grayscale Mini Fund shares. Another 12,789,596,206 Grayscale Mini Fund shares could be created before the supply of Ethereum was exhausted. As a result, 5,116 market participants would have to simultaneously exercise 25,000 same side positions in Grayscale Mini Fund options to receive shares of Grayscale Mini Fund holding the entire global supply of Ethereum. Similarly, based on the $25.80 price of a Bitwise Fund share on November 29, 2024, a market participant could have redeemed one Ethereum for approximately 139 Bitwise Fund shares. Another 16,775,191,302 Bitwise Fund shares could be created before the supply of Ethereum was exhausted. As a result, 6,710 market participants would have to simultaneously exercise 25,000 same side positions in Bitwise Fund options to receive shares of Bitwise Fund holding the entire global supply of Ethereum. Unlike the Ethereum Funds, the number of shares that corporations may issue is limited. However, like corporations, which authorize additional shares, repurchase shares, or split their shares, the Ethereum Funds may create, redeem, or split shares in response to demand. The supply of Ethereum is larger than the available supply of most securities.
                    <SU>42</SU>
                    <FTREF/>
                     Given the significant unlikelihood of any of these events ever occurring, the Exchange does not believe options on the Ethereum Funds should be subject to position and exercise limits even lower than those proposed (which are already 
                    <PRTPAGE P="16311"/>
                    equal to the lowest available limit for equity options in the industry) to protect the supply of Ethereum.
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         The market capitalization of ethereum would rank in the top 20 among securities. See 
                        <E T="03">https://companiesmarketcap.com/usa/largest-companies-in-the-usa-by-market-cap/.</E>
                    </P>
                </FTNT>
                <P>
                    NYSE American compared the proposed position limits to the position limit of CME Ethereum futures. The Chicago Mercantile Exchange (“CME”) imposes a position limit of 8,000 futures (for the initial spot month) on its ethereum futures contract.
                    <SU>43</SU>
                    <FTREF/>
                     On November 29, 2024, CME Jan 25 Ethereum Futures settled at $3,629.69. A position of 8,000 CME Ethereum futures, therefore, would have a notional value of $1,451,876,000. The following table shows the share price of each Ethereum Fund on November 29, 2024, and the approximate number of option contracts that equates to that notional value:
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 349 (description of CME ether futures) and Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices. Each CME ether futures contract is valued at fifty ethers as defined by the CME CF Ether Reference Rate (“ERR”). 
                        <E T="03">See</E>
                         CME Rulebook Chapter 349.
                    </P>
                </FTNT>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s100,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ethereum Fund</CHED>
                        <CHED H="1">
                            Share price 
                            <LI>($)</LI>
                        </CHED>
                        <CHED H="1">
                            Number of 
                            <LI>option </LI>
                            <LI>contracts</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Grayscale Fund</ENT>
                        <ENT>30.15</ENT>
                        <ENT>481,551</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Grayscale Mini Fund</ENT>
                        <ENT>33.84</ENT>
                        <ENT>429,041</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">Bitwise Fund</ENT>
                        <ENT>25.80</ENT>
                        <ENT>562,743</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The approximate number of option contracts for each Ethereum Fund that would equate to the notional value of CME Ethereum futures is significantly higher than the proposed limit of 25,000 options contract for each Ethereum Fund option. The fact that many options ultimately expire out-of-the-money and thus are not exercised for shares of the underlying, while the delta of an Ethereum future is 1, further demonstrates how conservative the proposed limits of 25,000 options contracts are for the Ethereum Fund options.</P>
                <P>
                    The Exchange notes, again, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>44</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>45</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. Considering CME's position limits on futures for Ethereum, the Exchange believes that that the proposed same side position limits are more than appropriate for the Ethereum options.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Consistent with its position regarding the irrelevance of bitcoin supply to position limits for options on bitcoin ETPs, the Exchange likewise believes the available supply of Ethereum is not relevant to the determination of position and exercise limits for Ethereum Fund options.
                    <SU>46</SU>
                    <FTREF/>
                     Position and exercise limits are not a tool that should be used to address a potential limited supply of the underlying of an underlying. Position and exercise limits do not limit the total number of options that may be held, but rather they limit the number of positions a single customer may hold or exercise at one time.
                    <SU>47</SU>
                    <FTREF/>
                     “Since the inception of standardized options trading, the options exchanges have had rules imposing limits on the aggregate number of options contracts that a member or customer could hold or exercise.” 
                    <SU>48</SU>
                    <FTREF/>
                     Position and exercise limit rules are intended “to prevent the establishment of options positions that can be used or might create incentives to manipulate or disrupt the underlying market so as to benefit the options position. In particular, position and exercise limits are designed to minimize the potential for mini-manipulations and for corners or squeezes of the underlying market. In addition, such limits serve to reduce the possibility for disruption of the options market itself, especially in illiquid options classes.” 
                    <SU>49</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         The Exchange is unaware of any proposed rule change related to position and exercise limits for any equity option (including commodity ETF options) for which the Commission required consideration of whether the available supply of an underlying (whether it be a corporate stock or an ETF) or the contents of an ETF (commodity or otherwise) should be considered when an exchange proposed to establish those limits. 
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 57894 (May 30, 2008), 73 FR 32061 (June 5, 2008) (SR-CBOE-2005-11) (approval order in which the Commission stated that the “listing and trading of Gold Trust Options will be subject to the exchanges' rules pertaining to position and exercise limits and margin”). The Exchange notes when the Commission approved this filing, the position limits in Rule 8.30 were the same as they are today. For reference, the current position and exercise limits for options on SPDR Gold Shares ETF (“GLD”) and options on iShares Silver Trust (“SLV”) are 250,000 contracts, or 10 times that proposed position and exercise limit for the Ethereum Fund options.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         For example, suppose an option has a position limit of 25,000 option contracts and there are a total of 10 investors trading that option. If all 10 investors max out their positions, that would result in 250,000 option contracts outstanding at that time. However, suppose 10 more investors decide to begin trading that option and also max out their positions. This would result in 500,000 option contracts outstanding at that time. An increase in the number of investors could cause an increase in outstanding options even if position limits remain unchanged.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange notes that a Registration Statement on Form S-1 was filed with the Commission for each Ethereum Fund, each of which described the supply of Ethereum as being unlimited.
                    <SU>50</SU>
                    <FTREF/>
                     Each Registration Statement permits an unlimited number of shares of the applicable Ethereum Fund to be created. Further, the Commission approved proposed rule changes that permitted the listing and trading of shares of each Ethereum Fund, which approval did not comment on the sufficient supply of Ethereum or address whether there was a risk that permitting an unlimited number of shares for a Ethereum Fund would 
                    <PRTPAGE P="16312"/>
                    impact the supply of ether.
                    <SU>51</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the Commission had ample time and opportunity to consider whether the supply of ethereum was sufficient to permit the creation of unlimited Ethereum Fund shares, and does not believe considering this supply with respect to the establishment of position and exercise limits is appropriate given its lack of relevance to the purpose of position and exercise limits. However, given the significant size of the Ethereum supply, the proposed positions limits are more than sufficient to protect investors and the market.
                </P>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See, e.g.,</E>
                         Grayscale Fund Form S-1 Registration Statement, at p. 77, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2020455/000119312524106957/d756153ds1.htm;</E>
                         Grayscale Mini Fund Amendment No. 5 to Form S-1 Registration Statement, at p. 79, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2020455/000119312524181081/d756153ds1a.htm;</E>
                         and Bitwise Fund Form S-1 Registration Statement 1, at p. 17, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2013744/000199937124007581/bitwise-s1a_061824.htm</E>
                         (“Ethereum Funds Reg. Stmts.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>
                    All of the above information demonstrates that the proposed position and exercise limits for the Ethereum Fund options are more than reasonable and appropriate. The trading volume, ADV, and outstanding shares of each Ethereum Fund demonstrate that these funds are actively traded and widely held, and proposed position and exercise limits are well below those of other ETFs with similar market characteristics. The proposed position and exercise limits are the lowest position and exercise limits available for equity options in the industry, are extremely conservative, and are more than appropriate given each Ethereum Fund's market capitalization and ADV. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying Ethereum Funds as well as the Ethereum market.
                    <SU>52</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to options on the Ethereum Funds that it applies to the Exchange's other options products, including options on the Bitcoin Funds.
                    <SU>53</SU>
                    <FTREF/>
                     The Exchange's market surveillance staff would have access to the surveillances it conducts, as well as that FINRA conducts on its behalf, as well as that conducted by Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe Exchange, Inc.
                    <SU>54</SU>
                    <FTREF/>
                     with respect to the Ethereum Funds and would review activity in the underlying Ethereum Funds when conducting surveillances for market abuse or manipulation in the options on the Ethereum Funds. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining information from its affiliated markets, the Exchange would be able to obtain information regarding trading in shares of the Ethereum Funds from their primary listing markets and from other markets that trade shares of the Ethereum Funds through ISG. In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”) for certain market surveillance, investigation and examinations functions. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate amongst themselves and FINRA responsibilities to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>55</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         The surveillance program includes surveillance patterns for price and volume movements as well as patterns for potential manipulation (
                        <E T="03">e.g.,</E>
                         spoofing and marking the close).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe Exchange, Inc. are affiliated markets of the Exchange.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         Section 19(g)(1) of the Act, among other things, requires every self-regulatory organization (“SRO”) registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>
                    The underlying shares of spot Ethereum exchange traded products (“ETPs”), including the Ethereum Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the [CME] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME Ether futures market.” 
                    <SU>56</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>57</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Ethereum Funds,
                    <SU>58</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ethereum Funds. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ethereum ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, at 46938 (footnotes excluded).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, at 46941 (footnote excluded).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on Ethereum Funds will be available via OPRA and major market data vendors.</P>
                <P>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 Ethereum Funds up to the number of expirations currently permissible under the Rules.</P>
                <P>
                    Ethereum Fund options will trade in the same manner as any other Fund Share options on the Exchange. The Exchange Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Ethereum Funds options on the Exchange in the same 
                    <PRTPAGE P="16313"/>
                    manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange, including the precious-metal backed commodity Fund Shares and the Bitcoin Funds already deemed appropriate for options trading on the Exchange pursuant to current Rule 19.3(i).
                    <SU>59</SU>
                    <FTREF/>
                     Position and exercise limits for options on ETFs, including options on Ethereum Funds, are determined pursuant to Rules 18.7 and 18.9.
                    <SU>60</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         
                        <E T="03">See, e.g.,</E>
                         SPDR Gold Trust, iShares COMEX Gold Trust or iShares Silver Trust, the Aberdeen Standard Physical Silver Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Physical Palladium Trust, the Aberdeen Standard Physical Platinum Trust, the Sprott Physical Gold Trust, the Goldman Sachs Physical Gold ETF or the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         Rule 18.7(a)(1) provides that no Options Member shall make, for any account in which it has any interest or for the account of any Customer, an opening transaction on any exchange if the Options Member has reason to believe that as a result of such transaction the Options Member or its Customer would, acting alone or in concert with others, directly or indirectly, exceed the applicable position limit fixed by Cboe Exchange, Inc. (“Cboe Options”). 
                        <E T="03">See also</E>
                         Cboe Options Rules 8.30 and 8.42.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that offering options on Ethereum Funds will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of Ethereum and hedging vehicle to meet their investment needs in connection with Ethereum -related products and positions. The Exchange expects investors will transact in options on Ethereum Funds in the unregulated over-the-counter (“OTC”) options market,
                    <SU>61</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed options, including (1) enhanced efficiency in initiating and closing out positions; (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 Ethereum Fund 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 Fund Shares 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 Ethereum Funds 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 Fund Share options, including Fund Shares that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals and Bitcoin) that it currently lists and trades on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         The Exchange understands from customers that investors have historically transacted in options on Fund Shares in the OTC options market if such options were not available for trading in a listed environment.
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that applicable Exchange rules will require that customers receive appropriate disclosure before trading options in Ethereum Funds.
                    <SU>62</SU>
                    <FTREF/>
                     Further, brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>63</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         
                        <E T="03">See</E>
                         Rules 26.2(b)) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         
                        <E T="03">See</E>
                         Rule 26.4.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>64</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>65</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>66</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>66</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>In particular, the Exchange believes that the proposal to list and trade options on the Ethereum Funds 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 the Ethereum Funds will provide investors with a greater opportunity to realize the benefits of utilizing options on an ETF based on spot Ethereum, including cost efficiencies and increased hedging strategies.</P>
                <P>The Exchange believes that offering options on competitively priced ETFs based on spot Ethereum will benefit investors by providing them with additional, relatively lower-cost risk management tools, allowing them to manage, more easily, their positions and associated risks in their portfolios in connection with exposure to spot Ethereum. Today, the Exchange lists options on other commodity (including Ethereum) ETFs structured as a trust, which essentially offer the same objectives and benefits to investors, and for which the Exchange has not identified any issues with the continued listing and trading of options on those ETFs.</P>
                <P>The Exchange also believes the proposal to permit options on the Ethereum Funds will remove impediments to and perfect the mechanism of a free and open market and a national market system, because options on the Ethereum Funds will comply with current Exchange Rules as discussed herein. Options on the Ethereum Funds must satisfy the initial listing standards and continued listing standards currently in the Rules, applicable to options on all ETFs, including options on other commodity ETFs already deemed appropriate for options trading on the Exchange pursuant to Rule 19.3(i). Additionally, as demonstrated above, the Ethereum Funds are characterized by a substantial number of shares that are widely held and actively traded. Further, Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits, and margin requirements, will govern the listing and trading of options on Ethereum Funds.</P>
                <P>
                    The Exchange believes the proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits for options on each of the Ethereum Funds is 25,000 contracts. These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given each Ethereum Fund's market capitalization, ADV, and high number of outstanding shares. The 
                    <PRTPAGE P="16314"/>
                    proposed position limit, and exercise limit, is consistent with the Act as it addresses concerns related to manipulation and protection of investors because, as demonstrated above, the position limit (and exercise limit) is extremely conservative and more than appropriate given the Ethereum Funds are actively traded. In support of the proposed position and exercise limits for options on the Ethereum Funds of 25,000 contracts, the Exchange is citing the in depth analysis NYSE American did in their filing. As noted above, in NYSE American Approval, NYSE American considered the: (1) applicable Ethereum Fund's market capitalization and ADV, and proposed position limit in relation to other securities; (2) market capitalization of the entire Ethereum market in terms of exercise risk and availability of deliverables; (3) proposed position limit by comparing it to position limits for derivative products regulated by the CFTC; and (4) supply of Ethereum. Based on the Exchange's review of these analyses, the Exchange believes that the setting position and exercise limits for options on each of the Ethereum Funds is 25,000 contracts is more than appropriate. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying as well as the Ethereum market.
                    <SU>67</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>67</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Ethereum Fund options. As discussed above, 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 Fund Shareoptions, including Ethereum Fund options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ethereum Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ethereum Funds in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Ethereum Funds and, as appropriate, would review activity in the underlying Ethereum Funds when conducting surveillances for market abuse or manipulation in the options on the Ethereum Funds. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition, the Exchange has a Regulatory Services Agreement with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ethereum Funds.</P>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Ethereum Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>68</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME ethereum futures market and the spot ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>69</SU>
                    <FTREF/>
                     In light of the foregoing, the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ethereum Funds. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ethereum ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>68</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR, at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>69</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46941.
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that this proposal 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 applicable Exchange rules will require that customers receive appropriate disclosure before trading options in Ethereum Funds 
                    <SU>70</SU>
                    <FTREF/>
                     and will require that brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>71</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>70</SU>
                         
                        <E T="03">See</E>
                         Rules 26.2(b)) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>71</SU>
                         
                        <E T="03">See</E>
                         Rule 26.4.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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 the Ethereum Fund options will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. The Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Ethereum Funds options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange. Also, and as stated above, the Exchange already lists options on other commodity-based Fund Shares (including Bitcoin-based).
                    <SU>72</SU>
                    <FTREF/>
                     Further, the Ethereum Funds would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other Fund Share for the Exchange to continue listing options on them.
                </P>
                <FTNT>
                    <P>
                        <SU>72</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i)(4).
                    </P>
                </FTNT>
                <P>
                    The Exchange does not believe that the proposal to list and trade options on Ethereum Funds will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. 
                    <PRTPAGE P="16315"/>
                    To the extent that the advent of Ethereum Fund 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. The Exchange notes that listing and trading Ethereum Fund 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.
                </P>
                <P>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 Ethereum Fund 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>73</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>74</SU>
                    <FTREF/>
                     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 
                    <SU>75</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>76</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>73</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>74</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>75</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>76</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has waived the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>77</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>78</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Ethereum Funds.
                    <SU>79</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Ethereum Funds, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Ethereum Funds. The proposal also establishes position and exercise limits for options on the Ethereum Funds and provides information regarding the surveillance procedures that will apply to Ethereum Fund options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Ethereum Fund options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>80</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>77</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>78</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>79</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025) (Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to Amend Exchange Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>80</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeEDGX-2025-030 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeEDGX-2025-030. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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 
                    <PRTPAGE P="16316"/>
                    SR-CboeEDGX-2025-030 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>81</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>81</SU>
                             17 CFR 200.30-3(a)(12), (59).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06512 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102840; File No. SR-BOX-2025-09]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Rules 3120 (Position Limits), 5020 (Criteria for Underlying Securities), and 5055 (FLEX Equity Options) To Permit the Listing and Trading of Options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 10, 2025, BOX Exchange 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 self-regulatory organization. The Commission is publishing this notice to solicit comments on the proposed rule from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The Exchange proposes to amend Rules 3120 (Position Limits), 5020 (Criteria for Underlying Securities), and 5055 (FLEX Equity Options) to permit the listing and trading of options on the Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF, and the Bitwise Ethereum ETF. 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 
                    <E T="03">https://rules.boxexchange.com/rulefilings.</E>
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Rules 3120 (Position Limits) and 5020 (Criteria for Underlying Securities) to allow the Exchange to list and trade options on the Grayscale Ethereum Trust ETF (the “Grayscale Fund” or “ETHE”), the Grayscale Ethereum Mini Trust ETF (the “Grayscale Mini Fund” or “ETH”), and the Bitwise Ethereum ETF (the “Bitwise Fund” or “ETHW” and, collectively, the “Ether Funds” or “Funds”).
                    <SU>3</SU>
                    <FTREF/>
                     Additionally, the Exchange proposes to amend Rule 5055 (FLEX Equity Options). This is a competitive filing that is based on a proposal recently submitted by NYSE American LLC (“NYSE American”) and approved by the Commission.
                    <SU>4</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 5020(h). On July 23, 2024, the Ether Funds began trading on NYSE Arca, Inc. (“NYSE Arca”), after the Commission approved rule changes to list and trade shares of “Ether-Based Commodity-Based Trust Shares” pursuant to Rule 8.201-E(c)(1) (Commodity-Based Trust Shares). 
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEARCA-2023-70; SR-NYSEARCA-2024-31) (order approving the listing and trading of, among other Ether-Based Exchange-Traded Products, the Bitwise Ethereum ETF and the Grayscale Ethereum Trust (ETH)); and 100541 (July 17, 2024), 89 FR 59786 (July 23, 2024) (SR-NYSEARCA-2024-44) (order approving the listing and trading of, among others, the Grayscale Ethereum Trust Mini).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025) (Order Approving SR-NYSEAMER-2024-45, as modified by Amendment No. 2) (“NYSE American Approval Order”).
                    </P>
                </FTNT>
                <P>
                    Current Rule 5020(h) provides that subject to certain other criteria set forth in the Rule, securities deemed appropriate for options trading include Exchange-Traded Fund Shares (“ETFs”), that represent certain types of interests 
                    <SU>5</SU>
                    <FTREF/>
                     and exchange-traded products (“ETPs”) structured as trusts that hold precious metals (which are deemed commodities).
                    <SU>6</SU>
                    <FTREF/>
                     Like ETPs backed by precious metals and bitcoin (
                    <E T="03">i.e.,</E>
                     commodities), the Exchange proposes to allow options trading on the Ether Funds that hold ether—which is also deemed a commodity.
                    <SU>7</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Rule 5020(h) which provides that securities deemed appropriate for options trading shall include shares or other securities (“Exchange-Traded Fund Shares”) that are traded on a national securities exchange and are defined as an “NMS stock” under Rule 600 of Regulation NMS and 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® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the abrdn Gold ETF Trust, the abrdn Silver ETF Trust, the abrdn Palladium ETF Trust, the abrdn Platinum ETF Trust, the Sprott Physical Gold Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, or the ARK 21Shares Bitcoin ETF; provided that all conditions in Rules 5020(h)(1) and (2) are met.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Rule 5020(h) (permitting the listing and trading of options on certain ETPs backed by precious metals and bitcoin). The Exchange notes on October 19, 2024, the Commission approved the NYSE American's proposal to list and trade options on the Grayscale Bitcoin Trust (BTC), the Grayscale Bitcoin Mini Trust BTC, and the Bitwise Bitcoin ETF. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 101386 (October 18, 2024), 89 FR 84960 (October 24, 2024) (SR-NYSEARCA-2024-49) (the “BTC Approval Order”). The Commission has also approved for options trading several other bitcoin-related funds: 
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release Nos. 101128 (September 20, 2024), 89 FR 78942 (September 26, 2024) (SR-ISE-2024-03) (order approving the listing and trading of options on the iShares Bitcoin Trust (IBIT)); and 101387 (October 18, 2024), 89 FR 84948 (October 24, 2024) (SR-CBOE-2024-035) (order approving the listing and trading of options on the Fidelity Wise Origin Bitcoin Fund and the ARK 21Shares Bitcoin ETF).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 5020(h) (expanded to include the listing and trading of options on shares of ETHE, ETH, AND ETHW, pursuant to Rule 5020).
                    </P>
                </FTNT>
                <PRTPAGE P="16317"/>
                <P>
                    The Ether Funds are structured as trusts that hold ether. Like ETFs and ETPs currently deemed appropriate for options trading, the investment objective of each Ether Fund trust is for its shares to reflect the performance of ether (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to ether without the complexities of ether delivery. Each Ether Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of ether and are designed to track ether or the performance of the price of ether and offer access to the ether market.
                    <SU>8</SU>
                    <FTREF/>
                     The Ether Funds provide investors with cost-efficient alternatives that allow a level of participation in the ether market through the securities market. The Exchange believes each Ether Fund satisfies the Exchange's initial listing standards set forth in Rule 5020(a).
                    <SU>9</SU>
                    <FTREF/>
                     The Exchange notes that the Ether Funds also satisfy the listing standard applied to ETFs traded on the Exchange that they be available for creation and redemption each business day as set forth in Rule 5020(h)(1).
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Rule 5020(a) provides for guidelines to be followed by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         Rule 5020(h)(1) requires that the Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares, all as described in the Exchange-Traded Fund Shares' prospectus.
                    </P>
                </FTNT>
                <P>
                    First, each of the Ether Funds satisfy the criteria and guidelines set forth in Rule 5020(a). Pursuant to Rule 5020(a), a security 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.
                    <SU>11</SU>
                    <FTREF/>
                     Each of the Ether Funds is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>12</SU>
                    <FTREF/>
                     The Exchange believes each Ether Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 5020(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>
                    As provided in the NYSE American Approval Order, as of November 29, 2025, ETHE had 177,838,500 shares outstanding, ETH had 45,220,787, and ETHW had 16,600,000. As such, each of the Ether Funds had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to Rule 5020(b)(1).
                    <SU>13</SU>
                    <FTREF/>
                     The Exchange believes this demonstrates that each Ether Fund is characterized by a substantial number of outstanding shares.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         The Exchange notes that on November 19, 2024, ETH underwent a reverse stock split, reducing the number of shares outstanding—and increasing the share price—tenfold.
                    </P>
                </FTNT>
                <P>
                    Further, as provided in the NYSE American Approval Order, as of December 31, 2024, ETHE had 112,320 beneficial holders, ETH had 17,396, and ETHW had 5,992. As such, each Ether Fund has significantly more than 2,000 beneficial holders (approximately 56, 9, and 3 times more, respectively), which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to pursuant to Rule 5020(b)(2).
                    <SU>14</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the shares of each Ether Fund are widely held.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         The number of beneficial holders of ETH may have been impacted by the 10:1 reverse stock split, as investors with fewer than 10 shares would have received a cash payout. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    According to the NYSE American Approval Order, based on trading volume since the Funds began trading on July 23, 2024, shares of the Ether Funds are actively traded. In particular, the total trading volume from the inception of trading through November 29, 2024 for ETHE was 427,312,540 shares and ETH was 172,400,020 shares and through December 31, 2024 was 44,477,060 for ETHW.
                    <SU>15</SU>
                    <FTREF/>
                     As such, even though the Ether Funds have been trading for less than one year, the trading volume for each Ether Fund is substantially higher than 2,400,000 shares (roughly 178, 72, and 16 times that amount, respectively), which is the minimum 12-month volume the Exchange generally requires for a security in order to list options on that security as set forth in Rule 5020(b)(4). The Exchange believes this data demonstrates that each Ether Fund is characterized by a substantial number of outstanding shares that are actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31/24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                    </P>
                </FTNT>
                <P>Options on the Ether Funds will be subject to the Exchange's continued listing standards set forth in Rule 5030(h) for ETFs and ETPs deemed appropriate for options trading pursuant to Rule 5020(h). Specifically, Rule 5030(h) provides that funds that were initially approved for options trading pursuant to 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 fund, if the fund ceases to be an NMS stock or if the fund is halted from trading in their primary market. In addition, options on funds may be subject to the suspension of opening transactions in any of the following circumstances: (1) in the case of options covering funds approved for trading under Rule 5020(h)(1)(i), in accordance with the terms of subparagraphs (b)(1),(2),(3) and (6) of Rule 5030; (2) in the case of options covering funds approved for trading under Rule 5020(h)(1)(ii) (as is the case for the Ether Funds), following the initial twelve-month period beginning upon the commencement of trading in the fund on a national securities exchange and are defined as an NMS stock, there are fewer than 50 record and/or beneficial holders of such fund for 30 or more consecutive trading days; (3) the value of the index or portfolio of securities and/or financial instruments and money market instruments, or non-U.S. currency, portfolio of commodities including commodity futures contracts, options on commodity futures contracts, swaps, forward contracts and/or options on physical commodities, on which the ETFs 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.</P>
                <P>
                    Options on the Ether Funds will be physically settled contracts with American-style exercise.
                    <SU>16</SU>
                    <FTREF/>
                     Consistent 
                    <PRTPAGE P="16318"/>
                    with current Rule 5050, which governs the opening of options series on a specific underlying security (including ETFs and ETPs), the Exchange will open at least one expiration month for options on the Ether Funds 
                    <SU>17</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on the Ether Funds for trading on a weekly,
                    <SU>18</SU>
                    <FTREF/>
                     monthly,
                    <SU>19</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>20</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) that expire from twelve to one hundred eighty months from the time they are listed.
                    <SU>21</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Rule 5010 (Rights and Obligations of Holders and Writers), which provides that the rights and obligations of holders and writers of option contracts of any class of options dealt in on the Exchange shall be as set forth in the Rules of the Clearing Corporation. 
                        <E T="03">See also</E>
                         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: 
                        <E T="03">
                            https://www.theocc.com/
                            <PRTPAGE/>
                            getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/occrules.pdf.
                        </E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Rule 5050(b). The standard expirations are subject to certain listing criteria for underlying securities described within Rule 5020. Standard 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to 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. 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         IM-5050-6.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         IM-5050-13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         IM-5050-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Rule 5070.
                    </P>
                </FTNT>
                <P>
                    Pursuant to IM-5050-1(b), which governs strike prices of series of options on ETFs, the interval between strike prices of series of options on the Ether Funds will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>22</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>23</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>24</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>25</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>26</SU>
                    <FTREF/>
                     Pursuant to Rule 7050, where the price of a series of an Ether Fund 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.
                    <SU>27</SU>
                    <FTREF/>
                    Any and all new series of Ether Fund 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.
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, IM-5050-6, IM-5050-13, and IM-5050-4, specifically set forth intervals between strike prices on Quarterly Options Series, Short Term Option Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         IM-5050-2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         IM-5050-5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         IM-5050-3.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Rule 5050(d)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         If options on the Ether Funds are eligible to participate in the Penny Interval Program, the minimum increment of $0.01 below $3.00 and $0.05 above $3.00 would apply. 
                        <E T="03">See</E>
                         Rule 7050(a)(3). 
                        <E T="03">See also</E>
                         Rule 7260 (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>
                    The Exchange also proposes to amend IM-3120-2 to provide a position limit of 25,000 same side option contracts for the Ether Fund options. Further, Rule 3140 provides that the exercise limits shall be determined in the manner described in Rule 3120, therefore the exercise limits would also be 25,000 contracts.
                    <SU>28</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         Rule 3140(c),
                    </P>
                </FTNT>
                <P>
                    Position and exercise limits for options, including options on Ether Funds, are determined pursuant to Rules 3120 and 3140, respectively. Position and exercise limits for options vary according to the number of outstanding shares and the trading volumes of the underlying security over the past six months, where the largest in capitalization and the most frequently traded funds 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 funds 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.
                    <SU>29</SU>
                    <FTREF/>
                     Position limits are designed to limit the number of options contracts traded on BOX in an underlying security that an investor, acting alone or in concert with others directly or indirectly, may control. The purpose of position limits, which are set forth in Rule 3120, is to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. As such, position limits must balance concerns regarding mitigating potential manipulation and the cost of inhibiting potential hedging activity that investors may use for legitimate economic purposes. To achieve this balance, the Exchange proposes to set the position and exercise limits for the options on the Ether Funds at 25,000 contracts.
                    <SU>30</SU>
                    <FTREF/>
                     Capping the position limit at 25,000 contracts, the lowest limit available in options, would address concerns related to manipulation and protection of investors as this number is conservative for the Ether Funds and therefore appropriate given their liquidity. While the Exchange believes that the proposed 25,000-contract position limit is conservative for options on the Ether Funds, it nonetheless believes that, as provided in the NYSE American Approval Order, evidence exists to support a much higher position limit.
                    <SU>31</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See</E>
                         Rule 3120(d). For an option to be eligible for the 50,000-contract limit, the security underlying the option must have most recent six-month trading volume of at least 20,000,000 shares, or most recent six-month trading volume of at least 15,000,000 shares and at least 40,000,000 shares currently outstanding. For an option to be eligible for the 75,000-contract limit, the underlying security must have most recent six-month trading volume of at least 40,000,000 shares, or most recent six-month trading volume of at least 30,000,000 shares and at least 120,000,000 shares currently outstanding. For an option to be eligible for the 200,000-contract limit, the underlying security must have most recent six-month trading volume of at least 80,000,000 shares, or most recent six-month trading volume of at least 60,000,000 shares and at least 240,000,000 shares currently outstanding. For an option to be eligible for the 250,000-contract limit, the security underlying the option must have most recent six-month trading volume of at least 100,000,000 shares, or most recent six-month trading volume of at least 75,000,000 shares and at least 300,000,000 shares currently outstanding. The 25,000-contract limit applies to options on underlying securities that do not qualify for a higher contract limit. In addition, IM-3120-2 establishes higher position limits for options on certain ETFs.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         proposed IM-3120-2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         The Exchange may file a subsequent rule change to amend the position and exercise limit for options on any or all the Ether Funds based on additional data regarding trading activity, to continue to balance any concerns regarding manipulation. A higher position limit would allow institutional investors to utilize options on the Ether Funds for prudent risk management purposes.
                    </P>
                </FTNT>
                <P>
                    Specifically, as provided in the NYSE American Approval Order, the most-recent trading volume in ETHE and ETH well exceeds the requisite minimum of 100,000,000 shares necessary to qualify for the 250,000-contract position and exercise limits.
                    <SU>32</SU>
                    <FTREF/>
                     By comparison, other options symbols with less trading volume for the most-recent six months than ETHE and ETH are eligible for position and exercise limits of at least 250,000.
                    <SU>33</SU>
                    <FTREF/>
                     Further, the most-recent trading volume for ETHW well exceeded the requisite minimum of 40,000,000 shares necessary to qualify for the 75,000-contract position (and exercise) limit, which is three times the proposed 25,000- contract limit.
                    <SU>34</SU>
                    <FTREF/>
                     Finally, the proposed 25,000-contract position limit is the default for options that do not otherwise qualify for a 
                    <PRTPAGE P="16319"/>
                    higher limit and is therefore an adequate limit for each Ether Fund.
                    <SU>35</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See supra</E>
                         note 4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See https://www.theocc.com/Market-Data/Market-Data-Reports/Series-and-Trading-Data/Series-Search</E>
                         (including the following symbols that have a position limit of 250,000: GLD, IAU, SLV, SIVR, SGOL).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">See supra</E>
                         note 4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>As provided in the NYSE American Approval Order, if a market participant held the maximum permissible options positions in one of the Ether Fund options and exercised all of them at the same time, that market participant would control a small percentage of the outstanding shares of the underlying Ether Fund. For example, as noted above, a position limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the applicable Ether Fund (if that market participant exercised all its options).</P>
                <P>
                    Further, as provided in the NYSE American Approval Order, if 71 market participants had 25,000 same side positions in options on ETHE, each of them would have to simultaneously exercise all those options to create a scenario that may put the underlying security under stress. Similarly, if 18 market participants had 25,000 same side positions in options on ETH, each of them would have to simultaneously exercise all those options to create a scenario that may put the underlying security under stress. Finally, if 7 market participants had 25,000 same side positions in options on ETHW, each of them would have to simultaneously exercise all those options to create a scenario that may put the underlying security under stress. The Exchange believes it is highly unlikely for any of these scenarios to occur; however, even if such an event did occur, the Exchange would not expect any of the Ether Funds to be under stress because such an event would merely induce the creation of more shares through the trust's creation and redemption process. Further, given that the issuer of each Ether Fund may create and redeem shares that represent an interest in ether, the Exchange believes it is relevant to compare the size of a position limit to the market capitalization of the ether market. As of November 29, 2024, the global supply of ether was approximately 120.44 million, and the price of one ether was approximately $3,593.49,
                    <SU>36</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $439.78 billion. Consider the proposed position and exercise limit of 25,000 option contracts for each Ether Fund option. A position and exercise limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of ETHE, ETH, and ETHW, as applicable (if that market participant exercised all of its options). Therefore, if a market participant with the maximum 25,000 same side contracts in options on any of ETHE, ETH, or ETHW exercised all positions at one time, such an event would have no practical impact on ether.
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See https://finance.yahoo.com/quote/ETH-USD/history/.</E>
                    </P>
                </FTNT>
                <P>
                    The NYSE American Approval Order provides the Ether Funds collectively represent approximately 1.71% of the global supply of ether (120,440,000).
                    <SU>37</SU>
                    <FTREF/>
                     Based on the $30.15 price of a ETHE share on November 29, 2024, a market participant could have redeemed one ether for approximately 119 ETHE shares. Another 14,354,890,070 ETHE shares could be created before the supply of ether was exhausted. As a result, 5,742 market participants would have to simultaneously exercise 25,000 same side positions in ETHE options to receive shares of the ETHE holding the entire global supply of ether. Similarly, based on the $33.84 price of an ETH share on November 29, 2024, a market participant could have redeemed one ether for approximately 106 ETH shares. Another 12,789,596,206 ETH shares could be created before the supply of ether was exhausted. As a result, 5,116 market participants would have to simultaneously exercise 25,000 same side positions in ETH options to receive shares of ETH holding the entire global supply of ether. Similarly, based on the $25.80 price of a ETHW share on November 29, 2024, a market participant could have redeemed one ether for approximately 139 ETHW shares. Another 16,775,191,302 ETHW shares could be created before the supply of ether was exhausted. As a result, 6,710 market participants would have to simultaneously exercise 25,000 same side positions in ETHW options to receive shares of ETHW holding the entire global supply of ether. Unlike the Ether Funds, the number of shares that corporations may issue is limited. However, like corporations, which authorize additional shares, repurchase shares, or split their shares, the Ether Funds may create, redeem, or split shares in response to demand. The supply of ether is larger than the available supply of most securities.
                    <SU>38</SU>
                    <FTREF/>
                     Given the significant unlikelihood of any of these events ever occurring, the Exchange does not believe options on the Ether Funds should be subject to position and exercise limits even lower than those proposed (which are already equal to the lowest available limit for equity options in the industry) to protect the supply of ether. The Exchange also believes the proposed limits are appropriate given position limits for ether futures. For example, the Chicago Mercantile Exchange (“CME”) imposes a position limit of 8,000 futures (for the initial spot month) on its ether futures contract.
                    <SU>39</SU>
                    <FTREF/>
                     On November 29, 2024, CME Jan 25 ether futures settled at $3,629.69. A position of 8,000 CME ether futures, therefore, would have a notional value of $1,451,876,000. As provided in the NYSE American Approval Order, the approximate number of option contracts for each Ether Fund that would equate to the notional value of CME ether futures is significantly higher than the proposed limit of 25,000 options contract for each Ether Fund option. The fact that many options ultimately expire out-of-the-money and thus are not exercised for shares of the underlying, while the delta of an ether future is 1, further demonstrates how conservative the proposed limits of 25,000 options contracts are for the Ether Fund options. The Exchange notes, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>40</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>41</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous 
                    <PRTPAGE P="16320"/>
                    day's delta factors, then the position shall not constitute a position limit violation. Considering CME's position limits on futures for ether, the Exchange believes that that the proposed same side position limits are more than appropriate for the Ether Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         The market capitalization of ether would rank in the top 20 among securities. 
                        <E T="03">See https://companiesmarketcap.com/usa/largest-companies-in-the-usa-by-market-cap/.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 349 (description of CME ether futures) and Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices. Each CME ether futures contract is valued at fifty ethers as defined by the CME CF Ether Reference Rate (“ERR”). 
                        <E T="03">See</E>
                         CME Rulebook Chapter 349.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Consistent with its position regarding the irrelevance of bitcoin supply to position limits for options on bitcoin ETPs, the Exchange likewise believes the available supply of ether is not relevant to the determination of position and exercise limits for Ether Fund options.
                    <SU>42</SU>
                    <FTREF/>
                     Position and exercise limits are not a tool that should be used to address a potential limited supply of an underlying. Position and exercise limits do not limit the total number of options that may be held, but rather they limit the number of positions a single customer may hold or exercise at one time.
                    <SU>43</SU>
                    <FTREF/>
                     “Since the inception of standardized options trading, the options exchanges have had rules imposing limits on the aggregate number of options contracts that a member or customer could hold or exercise.” 
                    <SU>44</SU>
                    <FTREF/>
                     Position and exercise limit rules are intended “to prevent the establishment of options positions that can be used or might create incentives to manipulate or disrupt the underlying market so as to benefit the options position. In particular, position and exercise limits are designed to minimize the potential for mini-manipulations and for corners or squeezes of the underlying market. In addition, such limits serve to reduce the possibility for disruption of the options market itself, especially in illiquid options classes.” 
                    <SU>45</SU>
                    <FTREF/>
                     The Exchange notes that a Registration Statement on Form S-1 was filed with the Commission for each Ether Fund, each of which described the supply of ether as being unlimited.
                    <SU>46</SU>
                    <FTREF/>
                     Each Registration Statement permits an unlimited number of shares of the applicable Ether Fund to be created. Further, the Commission approved proposed rule changes that permitted the listing and trading of shares of each Ether Fund, which approval did not comment on the sufficient supply of ether or address whether there was a risk that permitting an unlimited number of shares for an Ether Fund would impact the supply of ether.
                    <SU>47</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the Commission had ample time and opportunity to consider whether the supply of ether was sufficient to permit the creation of unlimited Ether Fund shares, and does not believe considering this supply with respect to the establishment of position and exercise limits is appropriate given its lack of relevance to the purpose of position and exercise limits. However, given the significant size of the ether supply, the proposed positions limits are more than sufficient to protect investors and the market.
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See</E>
                         BTC Approval Order, 89 FR at 84965, n. 48 (asserting that, outside of the bitcoin context, NYSE American is unaware of any proposed rule change related to position and exercise limits for any equity option (including commodity ETF options) for which the Commission required consideration of whether the available supply of an underlying (whether it be a corporate stock or an ETF) or the contents of an ETF (commodity or otherwise) should be considered when an exchange proposed to establish those limits). 
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 57894 May 30, 2008), 73 FR 32061 (June 5, 2008) (SR-CBOE-2005-11) (approval order in which the Commission stated that the “listing and trading of Gold Trust Options will be subject to the exchanges' rules pertaining to position and exercise limits and margin”). The Exchange notes the current position and exercise limits for options on SPDR Gold Shares ETF (“GLD”) and options on iShares Silver Trust (“SLV”) are 250,000 contracts, or 10 times the position and exercise limit for options on the Ether Funds.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         For example, suppose an option has a position limit of 25,000 option contracts and there are a total of 10 investors trading that option. If all 10 investors max out their positions, that would result in 250,000 option contracts outstanding at that time. However, suppose 10 more investors decide to begin trading that option and also max out their positions. This would result in 500,000 option contracts outstanding at that time. An increase in the number of investors could cause an increase in outstanding options even if position limits remain unchanged.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See, e.g.,</E>
                         ETHE Form S-1 Registration Statement, at p. 77, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2020455/000119312524106957/d756153ds1.htm;</E>
                         ETH Amendment No. 5 to Form S-1 Registration Statement, at p. 79, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2020455/000119312524181081/d756153ds1a.htm;</E>
                         and ETHW Form S-1 Registration Statement 1, at p. 17, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2013744/000199937124007581/bitwise-s1a_061824.htm</E>
                         (“Ether Funds Reg. Stmts.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See infra</E>
                         note 50.
                    </P>
                </FTNT>
                <P>
                    Based on the foregoing, the Exchange believes the proposal to list options on the Ether Funds with positions and exercise limits of 25,000 on the same side, the lowest position limit available in the options industry, is conservative and appropriate given the market capitalization, average daily volume, and high number of outstanding shares for each of the Ether Funds. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying Ether Funds as well as the ether market.
                    <SU>48</SU>
                    <FTREF/>
                     As described herein, options on the Ether Funds will trade in the same manner as any other ETF or ETP options on the Exchange, except that the Ether Funds will not be eligible for FLEX Equity Option trading. The Exchange Rules that currently apply to the listing and trading of options on BOX, including, for example, Rules that govern listing criteria, expiration and exercise prices, minimum increments, margin requirements, customer accounts and trading halt procedures will apply to the listing and trading of Ether Funds on BOX in the same manner as they apply to all other ETFs and ETPs that are listed and traded on BOX, including the precious metal-backed commodity ETPs already deemed appropriate for options trading on BOX pursuant to Rule 5020(h). Further, as described above, Exchange Rules regarding position and exercise limits will likewise apply to options on the Ether Funds except that, as proposed, the position and exercise limits will be set at 25,000 on the same side.
                </P>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11). 
                        <E T="03">See also</E>
                         BTC Approval Order.
                    </P>
                </FTNT>
                <P>
                    The Exchange has analyzed BOX's capacity and represents that it and The Options Price Reporting Authority (“OPRA”) have the necessary systems capacity to handle the additional traffic associated with the listing of options on Ether Funds. The Exchange believes any additional traffic that would be generated from the trading of options on Ether Funds would be manageable. The Exchange represents that Exchange Participants will not have a capacity issue as a result of this proposed rule change. The Exchange represents that the same surveillance procedures applicable to all other options currently listed and traded on BOX will apply to options on Ether Funds, and that it has the necessary systems capacity to support the new option series. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ether Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ether Funds and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that Financial Industry Regulatory Authority 
                    <PRTPAGE P="16321"/>
                    (“FINRA”) conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. As such, the Exchange would be able to obtain information regarding trading in shares of the Ether Funds from their primary listing markets and from other markets that trade shares of the Ether Funds through ISG. In addition, the Exchange has a Regulatory Services Agreement with FINRA. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances.
                    <SU>49</SU>
                    <FTREF/>
                     Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds. The underlying shares of spot ether ETPs, including the Ether Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based exchange-traded products: Each Exchange has a comprehensive surveillance-sharing agreement with the [CME] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.
                    <SU>50</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME ether futures market and the spot ether market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of [the Ether ETPs].” 
                    <SU>51</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Ether Funds,
                    <SU>52</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds. Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on Ether Funds will be available via OPRA and major market data vendors. The Exchange believes that offering options on Ether Funds will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of ether and hedging vehicle to meet their investment needs in connection with ether-related products and positions. The Exchange expects investors will transact in options on Ether Funds in the unregulated over-the-counter (“OTC”) options market,
                    <SU>53</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed 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 Ether Fund options may cause investors to bring this liquidity to BOX, which would increase market transparency and enhance the process of price discovery conducted on BOX through increased order flow. The Exchange notes that the ETPs that hold precious metal commodities on which BOX may already list and trade options are trusts structured in substantially the same manner as Ether Funds 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 options on any ETFs or ETPs that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals) that it currently lists and trades on BOX. Finally, the Exchange notes that applicable Exchange rules will require that customers receive appropriate disclosure before trading options in Ether Funds.
                    <SU>54</SU>
                    <FTREF/>
                     Further, brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>55</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO. Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937, 46938 (May 30, 2024) (File Nos. SR-NYSEARCA-2023-70; SR-NYSEARCA-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Ether-Based Commodity-Based Trust Shares and Trust Units) (“Ether ETP Approval Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR at 46941.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2023-70), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2023-70/srnysearca202370-475871-1363474.pdf;</E>
                         Amendment No. 1 to Proposed Rule Change to List and Trade Shares of the Bitwise Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024- 31), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-31/srnysearca202431-475891-1363514.pdf;</E>
                         and Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum Mini ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024-44), filed May 22, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-44/srnysearca202444-476231-1364174.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         
                        <E T="03">See</E>
                         Rules 4020(b), (e) and 4100.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         
                        <E T="03">See</E>
                         Rule 4040.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Securities Exchange Act of 1934 (the “Act”),
                    <SU>56</SU>
                    <FTREF/>
                     in general, and Section 6(b)(5) of the Act,
                    <SU>57</SU>
                    <FTREF/>
                     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.
                </P>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <P>
                    In particular, the Exchange believes that the proposal to list and trade options on Ether Funds 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 
                    <PRTPAGE P="16322"/>
                    offering options on Ether Funds will provide investors with an opportunity to realize the benefits of utilizing options on an Ether Fund, including cost efficiencies and increased hedging strategies. The Exchange believes that offering Ether Fund 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 ether and with ether-related products and positions. Additionally, BOX's offering of Ether Fund 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 BOX through increased order flow to the benefit of all investors. The Exchange also notes that BOX already lists options on other commodity-based ETPs,
                    <SU>58</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as Ether Funds and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     Ether rather than precious metals) and for which the Exchange has not identified any issues with the continued listing and trading of commodity-backed ETP options BOX currently lists for trading. 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 Ether Funds satisfy the initial listing standards and continued listing standards currently in the Exchange Rules applicable to options on all ETFs and ETPs, including ETPs that hold other commodities already deemed appropriate for options trading on BOX. Additionally, as demonstrated above, each Ether Fund is characterized by a substantial number of shares that are widely held and actively traded. Ether Fund options will trade in the same manner as any other ETF or ETP options—the same Exchange Rules that currently govern the listing and trading of options, including permissible expirations, strike prices, minimum increments, and margin requirements, will govern the listing and trading of options on Ether Funds in the same manner. The Exchange believes the proposed rule change to exclude the Ether Funds from being eligible for trading as FLEX Equity Options is consistent with the Act, because without this prohibition, trading a FLEX Equity Option in the Funds would otherwise establish different position and exercise limits than those proposed herein.
                    <SU>59</SU>
                    <FTREF/>
                     The proposed position and exercise limit for options on the Ether Funds is 25,000 contracts, which proposed limits were recently approved for certain ETPs that hold bitcoin.
                    <SU>60</SU>
                    <FTREF/>
                     These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given the Ether Funds' market capitalization, average daily volume, number of beneficial holders, and high number of outstanding shares.
                    <SU>61</SU>
                    <FTREF/>
                     The proposed position and exercise limits are consistent with the Act as they addresses concerns related to manipulation and protection of investors because the position and exercise limits are extremely conservative and more than appropriate given the Ether Funds are actively traded. The Exchange also believes the proposal to exclude from FLEX trading options on the Ether Funds (
                    <E T="03">i.e.,</E>
                     per Rule 5055) at this time will remove impediments to and perfect the mechanism of a free and open market and a national market system because it adds clarity and transparency to Exchange Rules making them easier to navigate and understand to the benefit of investors and the public interest. The Exchange represents that BOX has the necessary systems capacity to support the new Ether Fund options. 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 options, including Ether Fund options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on Ether Funds. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on Ether Funds and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Ether Funds and, as appropriate, would review activity in the underlying Funds when conducting surveillances for market abuse or manipulation in the options on the Ether Funds. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. As such, the Exchange would be able to obtain information regarding trading in shares of the Ether Funds from their primary listing markets and from other markets that trade shares of the Ether Funds through ISG. In addition, the Exchange has a Regulatory Services Agreement with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Funds. The underlying shares of spot ether ETPs, including the Ether Funds, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>62</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME ether futures market and the spot ether market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>63</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Ether 
                    <PRTPAGE P="16323"/>
                    Funds,
                    <SU>64</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Funds. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ether ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         
                        <E T="03">See</E>
                         Rule 5020(h).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         The Exchange may submit a subsequent rule filing that would permit the Exchange to authorize for trading FLEX Equity Options on the Ether Funds (which filing may propose changes to existing FLEX Equity Option position limits for such options if appropriate).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         
                        <E T="03">See</E>
                         BTC Approval Order. 
                        <E T="03">See also</E>
                         IM-3120-2.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         As noted herein, the Ether Funds collectively represent approximately 1.71% of the ether market.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR, at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         
                        <E T="03">See</E>
                         Ether ETP Approval Order, 89 FR at 46941.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2023-70), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2023-70/srnysearca202370-475871-1363474.pdf;</E>
                         Amendment No. 1 to Proposed Rule Change to List and Trade Shares of the Bitwise Ethereum ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024-31), filed May 21, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-31/srnysearca202431-475891-1363514.pdf;</E>
                         and Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the Grayscale Ethereum Mini ETF under NYSE Arca Rule 8.201-E (Commodity-Based Trust Shares) (SR-NYSEARCA-2024-44), filed May 22, 2024, available at 
                        <E T="03">https://www.sec.gov/comments/sr-nysearca-2024-44/srnysearca202444-476231-1364174.pdf.</E>
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that this proposal 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 applicable Exchange rules will require that customers receive appropriate disclosure before trading options on Ether Funds 
                    <SU>65</SU>
                    <FTREF/>
                     and will require that brokers opening accounts and recommending options transactions comply with relevant customer suitability standards.
                    <SU>66</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         
                        <E T="03">See</E>
                         Rules 4020(b), (e) and 4100.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>66</SU>
                         
                        <E T="03">See</E>
                         Rule 4040.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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 a filing submitted by NYSE American that was recently approved by the Commission.
                    <SU>67</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>67</SU>
                         
                        <E T="03">See supra</E>
                         note 4.
                    </P>
                </FTNT>
                <P>
                    <E T="03">Intramarket Competition:</E>
                     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 Ether Funds would need to satisfy the initial listing standards set forth in the Exchange Rules in the same manner as any other ETF before BOX could list options on them. Additionally, Ether Fund 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 BOX will apply in the same manner to the listing and trading of all options on Ether Funds. Also, and as stated above, BOX already lists options on other commodity-based ETPs.
                    <SU>68</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>68</SU>
                         
                        <E T="03">See</E>
                         Rule 5020(h).
                    </P>
                </FTNT>
                <P>
                    <E T="03">Intermarket Competition:</E>
                     The Exchange does not believe that the proposal to list and trade options on Ether Funds 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 Ether Fund options trading on BOX may make BOX a more attractive marketplace to market participants at other exchanges, such market participants are free to elect to become market participants on BOX. Additionally, other options exchanges are free to amend their listing rules, as applicable, to permit them to list and trade options on Ether Funds. The Exchange notes that listing and trading Ether Fund options on BOX 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 BOX 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 Ether Fund options for trading on BOX 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 ether prices and ether-related products and positions on a listed options exchange.
                </P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange has neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>69</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>70</SU>
                    <FTREF/>
                     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 
                    <SU>71</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>72</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>69</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>70</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>71</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>72</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has waived the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>73</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>74</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Ether Funds.
                    <SU>75</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Ether Funds, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Ether Funds. The proposal also establishes position and exercise limits for options on the Ether Funds and provides information regarding the surveillance procedures that will apply to Ether Funds options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Ether Funds options. Therefore, the Commission believes that waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. Accordingly, the Commission hereby 
                    <PRTPAGE P="16324"/>
                    waives the 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>76</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>73</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>74</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>75</SU>
                         
                        <E T="03">See</E>
                         NYSE American Approval Order, 
                        <E T="03">supra</E>
                         note 4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>76</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-BOX-2025-09 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-BOX-2025-09. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-2025-09 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>77</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>77</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06525 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102834; File No. SR-CboeEDGX-2025-031]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 19.3</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 10, 2025, Cboe EDGX Exchange, Inc. (the “Exchange” or “EDGX”) 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 Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe EDGX Exchange, Inc. (the “Exchange” or “EDGX Options”) proposes to amend Rule 19.3 regarding the criteria for underlying securities. The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/options/regulation/rule_filings/edgx/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>
                    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.
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; and SRCboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ethereum ETP Approval Order”).
                    </P>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100862 (August 28, 2024), 89 FR 72146 (August 28, 2024) (SR-CBOE-2024-036); and 102797 (April 9, 2025) (SR-CBOE-2024-036) (“Cboe Approval Order”).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Rule 19.3 regarding the criteria for underlying securities. Specifically, the Exchange proposes to amend Rule 19.3(i)(4) to allow the Exchange to list and trade options on shares or other securities (“Fund Shares”) that are principally traded on a national securities exchange and are defined as an “NMS stock” under Rule 600 of Regulation NMS and that represent interests in the Fidelity Ethereum Fund (the “Fidelity Fund”).
                    <SU>5</SU>
                     This is a competitive filing based on a similar proposal submitted by Cboe Exchange, Inc., which was recently approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>6</SU>
                     Current Rule 19.3(i) provides that, subject to certain other criteria set forth in that Rule, securities deemed appropriate for options trading include Fund Shares that represent certain types 
                    <PRTPAGE P="16325"/>
                    of interests,
                    <SU>7</SU>
                    <FTREF/>
                     including interests in certain specific trusts that hold financial instruments, money market instruments, or precious metals (which are deemed commodities).
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i) which permits options trading on Fund Shares that (1) represent interests in registered investment companies (or series thereof) organized as open-end management investment companies, unit investment trusts or similar entities, and that hold portfolios of securities comprising or otherwise based on or representing investments in indexes or portfolios of securities (or that hold securities in one or more other registered investment companies that themselves hold such portfolios of securities) (“Funds ”) and/or financial instruments including, but not limited to, stock index futures contracts, options on futures, options on securities and indexes, 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”) constituting or otherwise based on or representing an investment in an index or portfolio of securities and/or Financial Instruments and Money Market Instruments, or (2) 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 477 contracts and/or options on physical commodities and/or non-U.S. currency (“Commodity Pool ETFs”) or (3) represent interests in a trust or similar entity that holds a specified non-U.S. currency or currencies 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 (4) represent interests in the SPDR Gold Trust or are issued by the iShares COMEX Gold Trust or iShares Silver Trust.
                    </P>
                </FTNT>
                <P>
                    The Fidelity Fund is an Ethereum-backed commodity ETF structured as a trust. Similar to any Fund Share currently deemed appropriate for options trading under Rule 19.3(i), the investment objective of the Fidelity Fund is for its shares to reflect the performance of Ethereum (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to Ethereum without the complexities of Ethereum delivery. As is the case for Fund Shares currently deemed appropriate for options trading, the Fidelity Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of Ethereum and are designed to track Ethereum or the performance of the price of Ethereum and offer access to the Ethereum market.
                    <SU>8</SU>
                    <FTREF/>
                     The Fidelity Fund provides investors with cost-efficient alternatives that allow a level of participation in the Ethereum market through the securities market. The primary substantive difference between the Fidelity Fund and Fund Shares currently deemed appropriate for options trading are that Fund Shares may hold securities, certain financial instruments, specified precious metals (which are deemed commodities), and Bitcoin (which is also deemed a commodity), while the Fidelity Fund holds Ethereum (which is also deemed a commodity).
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes the Fidelity Fund satisfies the Exchange's initial listing standards for Fund Shares on which the Exchange may list options. Specifically, the Fidelity Fund satisfies the initial listing standards set forth in Rule 19.3(i), as is the case for other Fund Shares on which the Exchange lists options (including trusts that hold commodities). Rule 19.3(i)(1) requires that Fund Shares either (1) meet the criteria and standards set forth in Rule 19.3(a) and (b),
                    <SU>9</SU>
                    <FTREF/>
                     or (2) are available for creation or redemption each business day in cash or in kind from the investment company, commodity pool or other entity at a price related to net asset value, and the investment company, commodity pool or other entity is obligated to provide that Fund Shares may be created even if some or all of the securities and/or cash required to be deposited have not been received by the Fund, the unit investment trust or the management investment company, provided the authorized creation participant has undertaken to deliver the securities and/or cash as soon as possible and such undertaking is secured by the delivery and maintenance of collateral consisting of cash or cash equivalents satisfactory to the Fund, all as described in the Fund's or unit trust's prospectus. The Fidelity Fund satisfies Rule 19.3(i)(1)(B) as each is subject to this creation and redemption process.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Rule 19.3(a) and (b) sets forth the criteria an underlying security must meet for the Exchange to be able to list options on the underlying.
                    </P>
                </FTNT>
                <P>
                    While not required by the Rules for purposes of options listings, the Exchange believes the Fidelity Fund satisfies the criteria and guidelines set forth in Rule 19.3(a) and (b). Pursuant to Rule 19.3(a), a security (which includes a Fund Share) on which options may be listed and traded on the Exchange must be registered with the Commission and be an NMS stock (as defined in Rule 600 of Regulation NMS under the Securities Exchange Act of 1934, as amended (the “Act”)), and be characterized by a substantial number of outstanding shares that are widely held and actively traded.
                    <SU>10</SU>
                    <FTREF/>
                     The Fidelity Fund is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>11</SU>
                    <FTREF/>
                     The Exchange believes the Fidelity Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 19.3(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>
                    As of December 23, 2024, the Fidelity Fund had 41,700,000 shares outstanding, which is nearly six times more than the minimum number of shares of a corporate stock (
                    <E T="03">i.e.,</E>
                     7,000,000 shares) that the Exchange generally requires to list options on that stock pursuant to Rule 19.3(b)(1). The Exchange believes this demonstrates that the Fidelity Fund is characterized by a substantial number of outstanding shares.
                </P>
                <P>
                    Further, as of November 26, 2024, there were 38,170 beneficial holders of shares of the Fidelity Fund, which is significantly more than 2,000 beneficial holders (approximately 19 times more), which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to Rule 19.3(b). Therefore, the Exchange believes the shares of the Fidelity Fund are widely held.
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         The Exchange continues to believe assets under management (“AUM”), rather than shares outstanding and number of holders, is a better measure of investable capacity of ETFs and a more appropriate figure for determining position and exercise limits of ETFs and looks forward to further discussions with the Commission staff on this topic.
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes the shares of the Fidelity Fund are actively traded. As of December 23, 2024, the total trading volume (by shares) and the approximate average daily volume (“ADV”) (in shares and notional) from July 23, 2024 (the date on which shares of the Fidelity Fund began trading) to December 23, 2024 for the Fidelity Fund was as follows:
                    <PRTPAGE P="16326"/>
                </P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,20C,20C">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Trading volume 
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV 
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV 
                            <LI>(notional $)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">115,589,047</ENT>
                        <ENT>1,070,269</ENT>
                        <ENT>33,864,193</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As demonstrated above, despite the fact that the Fidelity Fund has been trading for approximately five months as of December 23, 2024, its total trading volume as of that date was substantially higher than 2,400,000 shares (more than 48 times that amount), which is the minimum 12-month volume the Exchange generally requires for a corporate stock in order to list options on that security as set forth in Rule 19.3(b). Additionally, as of December 23, 2024, the trading volume for the Fidelity Fund was in the top 5% of all ETFs that are currently trading. The Exchange believes this data demonstrates the Fidelity Fund is characterized as having shares that are actively traded.</P>
                <P>Options on the Fidelity Fund will be subject to the Exchange's continued listing standards set forth in Rule 19.4(g) for Fund Shares deemed appropriate for options trading pursuant to Rule 19.3(i). Specifically, 19.4(g) provides that Fund Shares that were initially approved for options trading pursuant to Rule 19.3 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 Fund Shares if the security ceases to be an NMS stock (see Rule 19.4(b)(4)). Additionally, the Exchange will not open for trading any additional series of option contracts of the class covering Fund Shares in any of the following circumstances: (1) in the case of options covering Fund Shares approved for trading under Rule 19.3(i)(4)(A), in accordance with the terms of Rule 19.4(b)(1), (2) and (3); (2) in the case of options covering Fund Shares approved pursuant to Rule 19.3(i)(4)(B), following the initial 12-month period beginning upon the commencement of trading in the Fund Shares on a national securities exchange and are defined as NMS stock under Rule 600 of Regulation NMS, there were fewer than 50 record and/or beneficial holders of such Fund Shares for 30 consecutive days; (3) the value of the index, non-U.S. currency, 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 or Money Market Instruments, or portfolio of securities on which the 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.</P>
                <P>
                    Options on the Fidelity Fund will be physically settled contracts with American-style exercise.
                    <SU>13</SU>
                    <FTREF/>
                     Consistent with current Rule 19.6, which governs the opening of options series on a specific underlying security (including Fund Shares), the Exchange will open at least one expiration month for options on the Fidelity Fund 
                    <SU>14</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on the Fidelity Fund for trading on a weekly,
                    <SU>15</SU>
                    <FTREF/>
                     monthly,
                    <SU>16</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>17</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) that expire from 12 to 39 months from the time they are listed.
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Rule 19.2, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">and</E>
                         Equity Options Product Specifications January 3, 2024), available at Equity Options Specifications (
                        <E T="03">cboe.com</E>
                        ); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6(b). The monthly expirations are subject to certain listing criteria for underlying securities described within Rule 19.3. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Rule 19.6(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. 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .05.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .08.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Rule 19.8.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rule 19.6, Interpretation and Policy .01, which governs strike prices of series of options on Fund Shares, the interval of strikes prices for series of options on the Fidelity Fund will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>19</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>20</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>21</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>22</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>23</SU>
                    <FTREF/>
                     Pursuant to Rule 21.5, where the price of a series of a Fidelity Fund 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.
                    <SU>24</SU>
                    <FTREF/>
                     Any and all new series of Fidelity Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 19.6 and 21.5, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Rule 19.6, Interpretations and Policies .05, .08, and .04 specifically sets forth intervals between strike prices on Quarterly Options Series, Short Term Option Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .06.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6(d)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         If options on the Fidelity Fund 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. 
                        <E T="03">See</E>
                         21.5(d) (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rules 18.7 and 18.9, the position and exercise limits, respectively, for Fidelity Fund options will be 25,000 same side option contracts.
                    <SU>25</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         Rule 18.7(a)(1) provides that no Options Member shall make, for any account in which it has any interest or for the account of any Customer, an opening transaction on any exchange if the Options Member has reason to believe that as a result of such transaction the Options Member or its Customer would, acting alone or in concert with others, directly or indirectly, exceed the applicable position limit fixed by Cboe Exchange, Inc. (“Cboe Options”). The Commission recently approved a nearly identical rule filing of Cboe Options to amend Cboe Options Rule 8.30, Interpretation and Policy .10 (and Cboe Options Rule 8.42) to establish a position and exercise limit for Fidelity Fund options of 25,000. 
                        <E T="03">See</E>
                         Cboe Approval Order. Therefore, those position and exercise limits apply to the Exchange.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes these proposed position and exercise limits are reasonable and appropriate considering, among other things, the ADV (since trading of the Fidelity Fund began on July 23, 2024) and outstanding shares of the Fidelity Fund (which as discussed 
                    <PRTPAGE P="16327"/>
                    above demonstrate that the Fidelity Fund is widely held and actively traded and thus justify these conservatively proposed position limits), as set forth below, along with market capitalization (as of December 23, 2024):
                </P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,15C,15C">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            ADV 
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Outstanding 
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Market 
                            <LI>capitalization </LI>
                            <LI>($)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1,070,269</ENT>
                        <ENT>41,700,000</ENT>
                        <ENT>1,433,229,000</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    The Exchange then compared the number of outstanding shares of the Fidelity Fund to those of other ETFs. The approximate average position (and exercise limit) of ETF options with similar outstanding shares (as of December 31, 2024) was approximately 102,703 contracts, which is significantly higher (approximately 4 times) than the proposed position and exercise limit of 25,000 contracts for Fidelity Fund options.
                    <SU>26</SU>
                    <FTREF/>
                     As discussed above, shares of the Fidelity Fund are actively held and widely traded: (1) the Fidelity Fund (as of December 23, 2024) had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to Rule 19.3(b)(1); (2) the Fidelity Fund (as of November 26, 2024) had significantly more than 2,000 beneficial holders, which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to Rule 19.3(b)(2); and (3) the Fidelity Fund had a trading volume in the approximately five-month time period since it began trading substantially higher than 2,400,000 shares, which is the minimum 12-month volume the Exchange generally requires for a security in order to list options on that security as set forth in Rule 19.3(b)(4).
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         The position limits for those ETF options for which the underlying ETFs had similar outstanding shares were all 50,000 or above, and nearly half of them had position limits of 200,000 or 250,000 contracts.
                    </P>
                </FTNT>
                <P>With respect to outstanding shares, if a market participant held the maximum number of positions possible pursuant to the proposed position and exercise limits, the equivalent shares represented by the proposed position/exercise limit would represent approximately 6.0% of the 41,700,000 current outstanding shares of the Fidelity Fund. Therefore, if a market participant held the maximum permissible options positions in Fidelity Fund options and exercised all of them at the same time, that market participant would control a small percentage of the outstanding shares of the Fidelity Fund.</P>
                <P>
                    Cboe Options Rule 8.30, Interpretation and Policy .02 (which governs position limits on the Exchange pursuant to Rule 18.7), provides two methods of qualifying for a position limit tier above 25,000 option contracts. The first method is based on six-month trading volume in the underlying security, and the second method is based on slightly lower six-month trading volume 
                    <E T="03">and</E>
                     number of shares outstanding in the underlying security. An underlying stock or ETF that qualifies for method two based on trading volume and number of shares outstanding would be required to have the minimum number of outstanding shares as shown in middle column of the table below.
                </P>
                <P>The table, which provides the equivalent shares of the position limits applicable to equity options, including ETFs, further represents the percentages of the minimum number of outstanding shares that an underlying stock or ETF must have to qualify for that position limit (under the second method described above).</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s50,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Position/exercise limit
                            <LI>(in equivalent shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Minimum 
                            <LI>outstanding </LI>
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage of 
                            <LI>outstanding </LI>
                            <LI>shares</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">2,500,000</ENT>
                        <ENT>6,300,000</ENT>
                        <ENT>40.0</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5,000,000</ENT>
                        <ENT>40,000,000</ENT>
                        <ENT>12.5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">7,500,000</ENT>
                        <ENT>120,000,000</ENT>
                        <ENT>6.3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20,000,000</ENT>
                        <ENT>240,000,000</ENT>
                        <ENT>8.3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">25,000,000</ENT>
                        <ENT>300,000,000</ENT>
                        <ENT>8.3</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    The equivalent shares represented by the proposed position and exercise limits for the Fidelity Fund as a percentage of outstanding shares of the Fidelity Fund is significantly lower than the percentage for the lowest possible position limit for equity options of 25,000, which is the position limit the Exchange is proposing for Fidelity Fund options.
                    <SU>27</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         As these percentages are based on the minimum number of outstanding shares an underlying security must have to qualify for the applicable position limit, these are the highest possible percentages that would apply to any option subject to that position and exercise limit. 6,300,000 is the minimum number of outstanding shares an underlying security must have for the Exchange to continue to list options on that security, so this would be the smallest number of outstanding shares permissible for any corporate option that would have a position limit of 25,000 contract. 
                        <E T="03">See</E>
                         Rule 19.4(b)(1). This rule applies to corporate stock options but not ETF options, which currently have no requirement regarding outstanding shares of the underlying ETF for the Exchange to continue listing options on that ETF. Therefore, there may be ETF options trading for which the 25,000 contract position limits represents an even larger percentage of outstanding shares of the underlying ETF than set forth above.
                    </P>
                </FTNT>
                <P>
                    Further, the proposed position and exercise limit for Fidelity Fund options is equal to the lowest position and exercise limits available in the options industry for equity options, are extremely conservative and more than appropriate given the market capitalization, average daily volume, and high number of outstanding shares of the Fidelity Fund. The proposed position and exercise limit for the Fidelity Fund is also equal to the position and exercise limits for ETFs that hold Bitcoin, as recently approved by the Commission.
                    <SU>28</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 101387 (October 18, 2024), 89 FR 84948 (October 24, 2024) (SR-CBOE-2024-035) (“Bitcoin ETF Option Approval”); 
                        <E T="03">see also</E>
                         Cboe Options Rules 8.30, Interpretation and Policy .10 and 8.42 (which applies to the Exchange pursuant to Rule 18.7 and 18.9).
                    </P>
                </FTNT>
                <P>
                    All of the above information demonstrates that the proposed position and exercise limits for Fidelity Fund options are more than reasonable and appropriate. The trading volume, ADV, 
                    <PRTPAGE P="16328"/>
                    and outstanding shares of the Fidelity Fund demonstrate that its shares are actively traded and widely held, and proposed position and exercise limit is well below those of options on other ETFs with similar market characteristics. The proposed position and exercise limit would be the lowest position and exercise limit available for equity options in the industry, are extremely conservative, and are more than appropriate given the Fidelity Fund's market capitalization, ADV, and high number of outstanding shares.
                </P>
                <P>Fidelity Fund options will trade in the same manner as any other Fund Share options on the Exchange. The Exchange Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Fidelity Fund options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange, including the precious-metal backed commodity Fund Shares already deemed appropriate for options trading on the Exchange pursuant to current Rule 19.3(i).</P>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to options on the Fidelity Fund that it applies to the Exchange's other options products.
                    <SU>29</SU>
                    <FTREF/>
                     The Exchange's market surveillance staff would have access to the surveillances conducted by Cboe BZX Exchange, Inc. (“BZX”) 
                    <SU>30</SU>
                    <FTREF/>
                     with respect to the Fidelity Fund and would review activity in the Fidelity Fund when conducting surveillances for market abuse or manipulation in the options on the Fidelity Fund. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining information from the Exchange's equities, the Exchange would be able to obtain information regarding trading of shares of the Fidelity Fund through ISG.
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         The surveillance program includes surveillance patterns for price and volume movements as well as patterns for potential manipulation (
                        <E T="03">e.g.,</E>
                         spoofing and marking the close).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         Cboe BZX Exchange, Inc. is an affiliated market of the Exchange.
                    </P>
                </FTNT>
                <P>
                    In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”) for certain market surveillance, investigation and examinations functions. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate amongst themselves and FINRA responsibilities to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>31</SU>
                    <FTREF/>
                     The underlying shares of spot Ethereum exchange-traded products (“ETPs”), including the Fidelity Fund, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the [Chicago Mercantile Exchange (“CME”)] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>32</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>33</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the Fidelity Fund,
                    <SU>34</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Fidelity Fund. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Fidelity Fund.
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         Section 19(g)(1) of the Act, among other things, requires every self-regulatory organization (“SRO”) registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46939.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 2 to SR-CboeBZX-2023-095, Proposed Rule Change To List and Trade Shares of the Fidelity Ethereum Fund Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares (filed May 21, 2024); 
                        <E T="03">see also</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>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 the Fidelity Fund up to the number of expirations currently permissible under the Rules. Because the proposal is limited to one class, the Exchange believes any additional traffic that may be generated from the introduction of Fidelity Fund options will be manageable.</P>
                <P>
                    The Exchange believes that offering options on the Fidelity Fund will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of Ethereum and hedging vehicle to meet their investment needs in connection with Ethereum-related products and positions. The Exchange expects investors will transact in options on the Fidelity Fund in the unregulated over-the-counter (“OTC”) options market,
                    <SU>35</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed options, including (1) enhanced efficiency in initiating and closing out positions; (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 Fidelity Fund 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 Fund Shares that hold financial instruments, money market instruments, or precious metal commodities on which the Exchange may already list and trade options are 
                    <PRTPAGE P="16329"/>
                    trusts structured in substantially the same manner as the Fidelity Fund 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 Fund Share options, including Fund Shares that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals) that it currently lists and trades on the Exchange. The Exchange notes that quotation and last sale information for shares of the Fidelity Fund are available from the CTA high-speed lines, as well as from BZX (on which the shares are primarily listed). Quotation and last sale information for options on the Fidelity Fund will be available from OPRA and market data vendors.
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         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.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>36</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>37</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>38</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    In particular, the Exchange believes that the proposal to list and trade options on the Fidelity Fund 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 the Fidelity Fund will provide investors with an opportunity to realize the benefits of utilizing options on the Fidelity Fund, including cost efficiencies and increased hedging strategies. The Exchange believes that offering Fidelity Fund 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 Ethereum and with Ethereum-related products and positions. Additionally, the Exchange's offering of Fidelity Fund 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 (or has the authority to list) options on other commodity-based Fund Shares,
                    <SU>39</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as the Fidelity Fund and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     Ethereum rather than Bitcoin or precious metals) and for which the Exchange has not identified any issues with the continued listing and trading of commodity-backed Fund Share options it currently lists for trading.
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i)(4).
                    </P>
                </FTNT>
                <P>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 the Fidelity Fund satisfy the initial listing standards and continued listing standards currently in the Exchange Rules applicable to options on all Fund Shares, including Fund Shares that hold other commodities already deemed appropriate for options trading on the Exchange. Additionally, as demonstrated above, the Fidelity Fund is characterized by a substantial number of shares that are widely held and actively traded. Fidelity Fund options will trade in the same manner as any other Fund Share options—the same Exchange Rules that currently govern the listing and trading of all Fund Share options, including permissible expirations, strike prices and minimum increments, and applicable margin requirements, will govern the listing and trading of options on the Fidelity Fund in the same manner.</P>
                <P>
                    The Exchange believes the proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits in this are 25,000 contracts, which is currently the lowest limit applicable to any equity options (including ETF options) and the position and exercise limits that apply to comparable ETFs that hold Bitcoin.
                    <SU>40</SU>
                    <FTREF/>
                     The Exchange believes the proposed position and exercise limits are extremely conservative for Fidelity Fund options given the trading volume and outstanding shares for the Fidelity Fund. The information above demonstrates that the average position and exercise limits of options on ETFs with comparable outstanding shares and trading volume to those of the Fidelity Fund are significantly higher than the proposed position and exercise limits for Fidelity Fund options. Therefore, the proposed position and exercise limits for Fidelity Fund options are conservative relative to options on ETFs with comparable market characteristics.
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See</E>
                         Cboe Options Rule 8.30.
                    </P>
                </FTNT>
                <P>
                    Further, given that the issuer of the Fidelity Fund may create and redeem shares that represent an interest in Ethereum, the Exchange believes it is relevant to compare the size of a position limit to the market capitalization of the Ethereum market. As of December 23, 2024, the global supply of Ethereum was approximately 120,000,000 coins, and the price of one Ethereum coin was approximately $3,494.25,
                    <SU>41</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $419.31 billion. Consider the proposed position and exercise limit of 25,000 option contracts for the Fidelity Fund option. A position and exercise limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 of Fidelity Fund shares (if that market participant exercised all its options). Using a share price of $34.37 on December 23, 2024, the value of 2,500,000 shares of the Fidelity Fund at that price is $85,925,000, and the approximate percentage of that value of the size of the Ethereum market is 0.02%. Therefore, if a market participant with the maximum 25,000 same side contracts in Fidelity Fund options exercised all positions at one time, such 
                    <PRTPAGE P="16330"/>
                    an event would have no practical impact on the Ethereum market.
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">See</E>
                         Ethereum Price (ETH), Market Cap, Price Today &amp; Chart History—Blockworks.
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes the proposed position and exercise limits are appropriate given position limits for Ethereum futures. For example, the Chicago Mercantile Exchange (“CME”) imposes a position limit of 8,000 futures (for the initial spot month) on its Ethereum futures contract.
                    <SU>42</SU>
                    <FTREF/>
                     On December 23, 2024, CME Dec 24 Ethereum Futures settled at approximately $3,418.00. A position of 8,000 CME Ethereum futures, therefore, would have a notional value of $1,367,200,000. A position of approximately 397,789 option contracts would equate to that notional value.
                    <SU>43</SU>
                    <FTREF/>
                     This approximate number of option contracts for the Fidelity Fund that equate to the notional value of CME Ethereum futures is significantly higher than the proposed limit of 25,000 options contract for the Fidelity Fund option. The fact that many options ultimately expire out-of-the-money and thus are not exercised for shares of the underlying, while the delta of a Ethereum Future is 1, further demonstrates how conservative the proposed limit of 25,000 options contracts are for the Fidelity Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 349 (description of CME Ether Futures) and Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices. Each CME Ethereum futures contract is valued at 50 Ethereum as defined by the CME CF Ether Reference Rate (“BRR”). 
                        <E T="03">See</E>
                         CME Rule 35001.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         The notional value of the futures is calculated as follows: 8,000 futures × 50 (the futures multiplier) × $3,418 (the price of one future) = $1,367,200,000. The number of option contracts that equates to that notional value is calculated as follows: $1,367,200,000/notional value of one option contract ($34.37 (share price of Fidelity Fund) × 100 (option multiplier)) = 397,789 option contracts.
                    </P>
                </FTNT>
                <P>
                    The Exchange notes, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>44</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>45</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. Considering CME's position limits on futures for Ethereum, the Exchange believes that that the proposed same side position limits are more than appropriate for Fidelity Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>The Exchange believes the proposed position and exercise limits will have no material impact to the supply of Ethereum. For example, consider again the proposed position limit of 25,000 option contracts for the Fidelity Fund option. As noted above, a position limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the Fidelity Fund (if that market participant exercised all its options). As of December 23, 2024, the Fidelity Fund had 41,700,000 shares outstanding. This means that the approximate number of market participants that could hold the maximum of 25,000 same side positions in the Fidelity Fund that would equate to the number of shares outstanding of that Fund is 16.</P>
                <P>This means if 16 market participants had 25,000 same side positions in Fidelity Fund options, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. The Exchange believes it is highly unlikely for such an event to occur; however, even if either such event did occur, the Exchange would not expect the Fidelity Fund to be under stress because such an event would merely induce the creation of more shares through the trust's creation and redemption process.</P>
                <P>
                    As of December 23, 2024, the global supply of Ethereum was approximately 120,000,000, and the price of one Ethereum coin was approximately $3,418.00,
                    <SU>46</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $419.31 billion. Based on the $34.37 price of a Fidelity Fund share on December 23, 2024, a market participant could have redeemed one Ethereum for approximately 99 Fidelity Fund shares. Another 11,880,000,000 Fidelity Fund shares could be created before the then-circulating global supply of Ethereum was exhausted. As a result, 4,752 market participants would have to simultaneously exercise 25,000 same side positions in Fidelity Fund options to receive shares of the Fidelity Fund holding the entire global supply of Ethereum. Unlike the Fidelity Fund, the number of shares that corporations may issue is limited. However, like corporations, which authorize additional shares, repurchase shares, or split their shares, the Fidelity Fund may create, redeem, or split shares in response to demand. Additionally, the supply of Ethereum is unlimited.
                    <SU>47</SU>
                    <FTREF/>
                     The current supply of Ethereum is larger than the available supply of most securities.
                    <SU>48</SU>
                    <FTREF/>
                     Given the significant unlikelihood of any of these events ever occurring, the Exchange does not believe options on the Fidelity Fund should be subject to position and exercise limits even lower than those proposed (which are already equal to the lowest available limit for equity options in the industry) to protect the supply of Ethereum.
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Ethereum Price (ETH), Market Cap, Price Today &amp; Chart History—Blockworks.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         Ethereum Price (ETH), Market Cap, Price Today &amp; Chart History—Blockworks; 
                        <E T="03">see also</E>
                         Amendment No. 5 to Form S-1 Registration Statement No. 333-278249, Fidelity Fund, filed July 17, 2024, at 17 (noting that approximately 1,700 Ethereum are issued per day, subject to various factors); and Amendment No. 3 to Form S-1 Registration Statement No. 333-257474, ARK 21 Fund, filed May 10, 2024, at 15-16 (noting that approximately 1,700 Ethereum are issued per day, subject to various factors).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         The market capitalization of Ethereum would rank in the top 25 among securities. 
                        <E T="03">See https://companiesmarketcap.com/usa/largest-companies-in-the-usa-by-market-cap/</E>
                        .
                    </P>
                </FTNT>
                <P>
                    The Exchange believes the available supply of Ethereum is not relevant to the determination of position and exercise limits for options overlying the Fidelity Fund.
                    <SU>49</SU>
                    <FTREF/>
                     Position and exercise 
                    <PRTPAGE P="16331"/>
                    limits are not a tool that should be used to address a potential limited supply of the underlying of the instrument underlying the option (in this case, the Ethereum being held within the Fidelity Fund). Position and exercise limits do not limit the total number of options that may be held, but rather they limit the number of positions a single customer may hold or exercise at one time.
                    <SU>50</SU>
                    <FTREF/>
                     “Since the inception of standardized options trading, the options exchanges have had rules imposing limits on the aggregate number of options contracts that a member or customer could hold or exercise.” 
                    <SU>51</SU>
                    <FTREF/>
                     Position and exercise limit rules are intended “to prevent the establishment of options positions that can be used or might create incentives to manipulate or disrupt the underlying market so as to benefit the options position. In particular, position and exercise limits are designed to minimize the potential for mini-manipulations and for corners or squeezes of the underlying market. In addition, such limits serve to reduce the possibility for disruption of the options market itself, especially in illiquid options classes.” 
                    <SU>52</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         The Exchange is unaware of any proposed rule change related to position and exercise limits for any equity option (including commodity ETF options) for which the Commission required consideration of whether the available supply of an underlying (whether it be a corporate stock or an ETF) or the contents of an ETF (commodity or otherwise) should be considered when an exchange proposed to establish those limits, other than recently with respect to ETFs that hold Bitcoin. 
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 57894 (May 30, 2008), 73 FR 32061 (June 5, 2008) (SR-CBOE-2005-11) (approval order in which the Commission stated that the “listing and trading of Gold Trust Options will be subject to the exchanges' rules pertaining to position and exercise limits and margin”); 
                        <E T="03">compare to</E>
                         Bitcoin ETF Option Approval. The Exchange notes when the Commission approved the filing to list options on an ETF holding gold, filing, the position limits in Cboe Options Rule 8.30 were the same as they are today. For reference, the current position and exercise limits for options on SPDR Gold Shares ETF (“GLD”) and options on iShares Silver Trust (“SLV”) are 250,000 contracts, or 10 times that proposed position and exercise limit for the Fidelity Fund options.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         For example, suppose an option has a position limit of 25,000 option contracts and there are a total of 10 investors trading that option. If all 10 investors max out their positions, that would result in 250,000 option contracts outstanding at that time. However, suppose 10 more investors decide to begin trading that option and also max out their positions. This would result in 500,000 option contracts outstanding at that time. An increase in the number of investors could cause an increase in outstanding options even if position limits remain unchanged.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange notes that a Registration Statement on Form S-1 was filed with the Commission for the Fidelity Fund, which described the supply of Ethereum and the potential limits to that supply.
                    <SU>53</SU>
                    <FTREF/>
                     The Registration Statement permits an unlimited number of shares of the Fidelity Fund to be created. Further, the Commission approved the listing and trading of shares of the Fidelity Fund, which approval did not comment on the sufficient supply of Ethereum or address whether there was a risk that permitting an unlimited number of shares for the Fidelity Fund would impact the supply of Ethereum.
                    <SU>54</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the Commission had ample time and opportunity to consider whether the supply of Ethereum was sufficient to permit the creation of unlimited Fidelity Fund shares, and does not believe considering this supply with respect to the establishment of position and exercise limits is appropriate given its lack of relevance to the purpose of position and exercise limits. However, given the significant size of the Ethereum supply, the proposed positions limit is more than sufficient to protect investors and the market.
                </P>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 5 to Form S-1 Registration Statement No. 333-278249, Fidelity Fund, filed July 17, 2024, at 17.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>
                    Based on the above information demonstrating, among other things, that the Fidelity Fund is characterized by a substantial number of outstanding shares that are actively traded and widely held, the Exchange believes the proposed position and exercise limits are extremely conservative compared to those of ETF options with similar market characteristics. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying as well as the Ethereum market.
                    <SU>55</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Fidelity Fund options. As discussed above, 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 Fund Share options, including Fidelity Fund options.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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 options on the Fidelity Fund will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. The Exchange Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Fidelity Fund options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange. Also, and as stated above, the Commission has approved the trading of options on other commodity-based Fund Shares.
                    <SU>56</SU>
                    <FTREF/>
                     Further, the Fidelity Fund would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other Fund Share for the Exchange to continue listing options on them.
                </P>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i)(4).
                    </P>
                </FTNT>
                <P>
                    The Exchange does not believe that the proposal to list and trade options on the Fidelity Fund 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 Fidelity Fund 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 the Fidelity Fund.
                    <SU>57</SU>
                    <FTREF/>
                     The Exchange notes that listing and trading Fidelity Fund 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.
                </P>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         As noted above, at least one other options exchange has amended its rules to list and trade options on the Fidelity Fund. 
                        <E T="03">See</E>
                         Cboe Approval Order.
                    </P>
                </FTNT>
                <P>
                    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 Fidelity Fund 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 Ethereum prices and Ethereum-related products 
                    <PRTPAGE P="16332"/>
                    and positions on a listed options exchange.
                </P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received written comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>58</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>59</SU>
                    <FTREF/>
                     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 
                    <SU>60</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>61</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has waived the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>62</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>63</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Fidelity Fund.
                    <SU>64</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Fidelity Fund, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Fidelity Fund. The proposal also establishes position and exercise limits for options on the Fidelity Fund and provides information regarding the surveillance procedures that will apply to Fidelity Fund options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Fidelity Fund options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>65</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         
                        <E T="03">See supra</E>
                         note 6.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov</E>
                    . Please include file number SR-CboeEDGX-2025-031 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeEDGX-2025-031. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-CboeEDGX-2025-031 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>66</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>66</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06511 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102820; File No. SR-SAPPHIRE-2025-20]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities To List and Trade Options on the Fidelity Ethereum Fund</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 9, 2025, MIAX Sapphire, LLC (“MIAX Sapphire” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) a 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.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <PRTPAGE P="16333"/>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend proposes to amend Exchange Rule 402, Criteria for Underlying Securities to list and trade options on the Fidelity Ethereum Fund (the “Fidelity Fund”).</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings,</E>
                     at the Exchange's principal office, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities,
                    <SU>3</SU>
                    <FTREF/>
                     to allow the Exchange to list and trade options on the Fidelity Fund, designating the Fidelity Fund as appropriate for options trading on the Exchange.
                    <SU>4</SU>
                    <FTREF/>
                     This is a competitive filing based on similar proposals submitted by Cboe Exchange, Inc. (“Cboe”).
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange notes that its affiliate options exchanges, Miami International Securities Exchange, LLC (“MIAX”) and MIAX PEARL, LLC (“MIAX Pearl”), submitted (or will submit) substantively similar proposals. The Exchange notes that all the rules of Chapter III of MIAX including MIAX Rules 307 and 309, are incorporated by reference into the MIAX Pearl and MIAX Sapphire rulebooks. The Exchange also notes that all of the rules of Chapter III of MIAX, including MIAX Rules 307 and 309, and the rules of Chapter IV of the MIAX, including MIAX Rule 402, are incorporated by reference into the MIAX Emerald, LLC (“MIAX Emerald”) rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         On May 23, 2024, the Securities and Exchange Commission (the “Commission”) approved proposals by NYSE Arca, Inc., The Nasdaq Stock Market LLC, and Cboe BZX Exchange, Inc. to list and trade the shares of 8 ether-based commodity-based trust shares and trust units. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, To List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ether ETP Approval Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102797 (April 9, 2025) (Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on Shares of the Fidelity Ethereum Fund) (“Cboe Ether Approval Order”).
                    </P>
                </FTNT>
                <P>
                    Current Exchange Rule 402(i)(4) provides that securities deemed appropriate for options trading include shares or other securities (“Exchange Traded Fund Shares” or “ETFs”) that represent certain types of interests,
                    <SU>6</SU>
                    <FTREF/>
                     including interests in certain specific trusts that hold financial instruments, money market instruments, or precious metals (which are deemed commodities).
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i), which permits options trading on exchange-traded funds (“ETFs”) that: (1) 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 (“Funds”), 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); (2) represent interests in a trust or similar entity that holds a specified non-U.S. currency or currencies deposited with the trust which when aggregated in some specified minimum number may be surrendered to the trust or similar entity 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”); (3) 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”); (4) are issued by the SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Silver ETF Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Palladium ETF Trust, the Aberdeen Standard Platinum ETF Trust, the Goldman Sachs Physical Gold ETF, the Sprott Physical Gold Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, or the ARK 21 Shares Bitcoin ETF; or (5) represent an interest in a registered investment company (“Investment Company”) organized as an open-end management company or similar entity, that invests in a portfolio of securities selected by the Investment Company's investment adviser consistent with the Investment Company's investment objectives and policies, which is issued in a specified aggregate minimum number in return for a deposit of a specified portfolio of securities and/or a cash amount with a value equal to the next determined net asset value (“NAV”), and when aggregated in the same specified minimum number, may be redeemed at a holder's request, which holder will be paid a specified portfolio of securities and/or cash with a value equal to the next determined NAV (“Managed Fund Share”); provided that all of the conditions listed in (5)(i) and 5(ii) are met.
                    </P>
                </FTNT>
                <P>
                    The Fidelity Fund is an Ethereum-backed commodity ETFs [sic] structured as trusts [sic]. Similar to any ETFs currently deemed appropriate for options trading under Exchange Rule 402(i), the investment objective of the Fidelity Fund is for its shares to reflect the performance of Ethereum (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to Ethereum without the complexities of Ethereum delivery. As is the case for ETFs currently deemed appropriate for options trading, the Fidelity Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of Ethereum and are designed to track Ethereum or the performance of the price of Ethereum and offer access to the Ethereum market.
                    <SU>7</SU>
                    <FTREF/>
                     The Fidelity Fund provides investors with cost-efficient alternatives that allow a level of participation in the Ethereum market through the securities market. The primary substantive difference between Fidelity Fund and ETFs currently deemed appropriate for options trading are that ETFs may hold securities, certain financial instruments, and specified precious metals (which are deemed commodities), and Bitcoin (which is also deemed a commodity), while the Fidelity Fund hold [sic] Ethereum (which is also deemed a commodity).
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that the Fidelity Fund satisfies the Exchange's initial listing standards for ETFs on which the Exchange may list options. Specifically, the Fidelity Fund satisfies the initial listing standards set forth in Exchange Rule 402(i)(5)(i), as is the case for other ETFs on which the Exchange lists options (including trusts that hold commodities). Exchange Rule 402(i)(5)(i) requires that the ETFs must either (1) meet the criteria and standards set forth in Exchange Rule 402(a) or 402(b),
                    <SU>8</SU>
                    <FTREF/>
                     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 
                    <PRTPAGE P="16334"/>
                    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 Fidelity Fund satisfies Exchange Rule 402(i)(5)(i)(B), as it is subject to this creation and redemption process.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Subparagraphs (a) and (b) of Exchange Rule 402 provide for guidelines to be used by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <P>
                    While not required by the Rules for purposes of options listings, the Exchange believes that the Fidelity Fund satisfies the criteria and guidelines set forth in Exchange Rule 402. Pursuant to Exchange Rule 402(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.
                    <SU>9</SU>
                    <FTREF/>
                     The Fidelity Fund is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>10</SU>
                    <FTREF/>
                     The Exchange believes that the Fidelity Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Exchange Rule 403(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>
                    Based on the data presented in the Cboe filing,
                    <SU>11</SU>
                    <FTREF/>
                     as of December 23, 2024, the Fidelity Fund had 41,700,000 shares outstanding, which is nearly six times more than the minimum number of shares of a corporate stock (
                    <E T="03">i.e.,</E>
                     7,000,000 shares) that the Exchange generally requires to list options on that stock pursuant to Exchange Rule 402(b)(1). The Exchange believes this demonstrates that the Fidelity Fund is characterized by a substantial number of outstanding shares.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    Further, based on the data presented in the Cboe filing,
                    <SU>12</SU>
                    <FTREF/>
                     as of November 26, 2024, there were 38,170 beneficial holders of shares of the Fidelity Fund, which is significantly more than 2,000 beneficial holders (approximately 19 times more), which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to Exchange Rule 402(b)(2). Therefore, the Exchange believes the shares of the Fidelity Fund are widely held.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes that the shares of the Fidelity Fund are actively traded. Based on the data presented in the Cboe filing,
                    <SU>13</SU>
                    <FTREF/>
                     as of December 23, 2024, the total trading volume (by shares) and the approximate average daily volume (“ADV”) (in shares and notional) from July 23, 2024 (the date on which shares of the Fidelity Fund began trading) to December 23, 2024 for the Fidelity Fund was as follows:
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s30,15C,15C">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Trading volume
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(notional $)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">115,589,047</ENT>
                        <ENT>1,070,269</ENT>
                        <ENT>33,864,193</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As demonstrated above based on the data presented in the Cboe filing,
                    <SU>14</SU>
                    <FTREF/>
                     despite the fact that the Fidelity Fund has been trading for approximately five months as of December 23, 2024, its total trading volume as of that date was substantially higher than 2,400,000 shares (more than 48 times that amount), which is the minimum 12-month volume the Exchange generally requires for a corporate stock in order to list options on that security as set forth in Rule 402(b)(4). Additionally, as of December 23, 2024, the trading volume for the Fidelity Fund was in the top 5% of all ETFs that are currently trading. The Exchange believes this data demonstrates the Fidelity Fund is characterized as having shares that are actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>Options on the Fidelity Fund will also be subject to the Exchange's continued listing standards set forth in Exchange Rule 403(g), for ETFs deemed appropriate for options trading pursuant to Exchange Rule 402(i). Specifically, Exchange Rule 403(g) provides that ETFs that were initially approved for options trading pursuant to Exchange Rule 402(i) shall be deemed not to meet the requirements for continued approval, and the Exchange shall not open for trading any additional series of option contracts of the class covering such ETFs, if the ETFs are delisted from trading pursuant to Exchange Rule 403(b)(4) or the ETFs 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 402(i)(5)(i)(A), in accordance with the terms of paragraphs (b)(1), (2), and (3) of Exchange Rule 403; (2) in the case of options covering ETFs approved for trading under Exchange Rule 402(i)(5)(i)(B) (as is the case for the Fidelity Fund), 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 ETFs 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.</P>
                <P>
                    Options on the Fidelity Fund will be physically settled contracts with American-style exercise.
                    <SU>15</SU>
                    <FTREF/>
                     Consistent with current Exchange Rule 404, 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 the Fidelity Fund 
                    <SU>16</SU>
                    <FTREF/>
                     at the commencement 
                    <PRTPAGE P="16335"/>
                    of trading on the Exchange and may also list series of options on the Fidelity Fund for trading on a weekly,
                    <SU>17</SU>
                    <FTREF/>
                     monthly,
                    <SU>18</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>19</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) that expire from 12 to 39 months from the time they are listed.
                    <SU>20</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 401, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(b). The monthly expirations are subject to certain listing criteria for 
                        <PRTPAGE/>
                        underlying securities described within Exchange Rule 404 and its Interpretations and Policies. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Exchange Rule 404(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 404(e), 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy.13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy.03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 406(a).
                    </P>
                </FTNT>
                <P>
                    Pursuant to Exchange Rule 404, Interpretation and Policy .06, which governs strike prices of series of options on ETFs, the interval between strike prices of series of options on ETFs approved for options trading pursuant to Exchange Rule 402(i) or shall be fixed at a price per share which is reasonably close to the price per share at which the underlying security is traded in the primary market at or about the same time such series of options is first open for trading on the Exchange, or at such intervals as may have been established on another options exchange prior to the initiation of trading on the Exchange. With respect to the Short Term Options Series or Weekly Program, during the month prior to expiration of an option class that is selected for the Short Term Option Series Program, the strike price intervals for the related non-Short Term Option (“Related non-Short Term Option”) shall be the same as the strike price intervals for the Short Term Option.
                    <SU>21</SU>
                    <FTREF/>
                     Specifically, the Exchange may open for trading Short Term Option Series at strike price intervals of (i) $0.50 or greater where the strike price is less than $100, and $1 or greater where the strike price is between $100 and $150 for all option classes that participate in the Short Term Options Series Program; (ii) $0.50 for option classes that trade in one dollar increments and are in the Short Term Option Series Program; or (iii) $2.50 or greater where the strike price is above $150.
                    <SU>22</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>23</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>24</SU>
                    <FTREF/>
                     and the $2.50 Strike Price Program.
                    <SU>25</SU>
                    <FTREF/>
                     Pursuant to Exchange Rule 510, where the price of a series of options on the Fidelity Fund 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 
                    <SU>26</SU>
                    <FTREF/>
                     consistent with the minimum increments for options on other ETFs listed on the Exchange. Any and all new series of the Fidelity Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 404 and 510, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy.02(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(f).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 510.
                    </P>
                </FTNT>
                <P>Fidelity Fund 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 the Fidelity Fund options 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 402(i)(4).</P>
                <P>As mentioned above, the rules for position and exercise limits for options on ETFs, including Fidelity Fund options, are determined pursuant to MIAX Rules 307 and 309, respectively, as incorporated by reference into the MIAX Sapphire Rulebook. Position and exercise limits for ETF options vary according to the number of outstanding shares and the trading volumes of the underlying ETF over the past six months, where the largest in capitalization and the most frequently traded ETFs have an option position and exercise limit of 250,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market; and smaller capitalization ETFs have position and exercise limits of 200,000, 75,000, 50,000 or 25,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market. The Exchange further notes that MIAX Rule 1502, which governs margin requirements applicable to trading on the Exchange, including options on ETFs, will also apply to the trading of the Fidelity Fund options, as MIAX Chapter XV (Margins) is also incorporated by reference into the MIAX Sapphire Rulebook. Notwithstanding the position limits in MIAX Rule 307(d) and exercise limits in MIAX Rule 309, the Exchange proposes the position and exercise limits for the options on the options on the [sic] Fidelity Fund to be 25,000 contracts on the same side pursuant to proposed Interpretation and Policy.01 to MIAX Rule 307 and proposed Interpretation and Policy.01 to MIAX Rule 309.</P>
                <P>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 the Fidelity Fund. Also the Exchange represents 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 the proposed Fidelity Fund options.</P>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to the Fidelity Fund options that it applies to the Exchange's other options products.
                    <SU>27</SU>
                    <FTREF/>
                     The Exchange's staff will have access to the surveillance programs conducted by its affiliate exchanges, MIAX and MIAX Pearl, with respect to trading in the shares of the underlying Fidelity Fund when conducting surveillances for market abuse or manipulation in the options on the Fidelity Fund. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the 
                    <PRTPAGE P="16336"/>
                    stock, options, and futures markets. In addition to obtaining surveillance data from MIAX and MIAX Pearl, the Exchange will be able to obtain information regarding trading in the shares of the underlying Fidelity Fund from Cboe, and other markets through ISG. In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”). Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities amongst themselves and to FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>28</SU>
                    <FTREF/>
                     The underlying shares of spot Ethereum exchange-traded products (“ETPs”), including the Fidelity Fund, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs,
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         The surveillance program includes real-time patterns for price and volume movements and post-trade surveillance patterns (
                        <E T="03">e.g.,</E>
                         spoofing, marking the close, pinging, phishing).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <EXTRACT>
                    <FP>
                        [e]ach Exchange has a comprehensive surveillance sharing agreement with the [Chicago Mercantile Exchange (“CME”)] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME bitcoin [sic] futures market.
                        <SU>29</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             
                            <E T="03">See</E>
                             Ethereum ETP Approval Order, 89 FR 46938.
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>30</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the Fidelity Fund,
                    <SU>31</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Fidelity Fund. Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Fidelity Fund.
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR 46939.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>The Exchange has also analyzed its capacity and represents that it believes the Exchange and Options Price Reporting Authority(“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 the Fidelity Fund up to the number of expirations currently permissible under the Rules. Because the proposal is limited to one class, the Exchange believes any additional traffic that may be generated from the introduction of the Fidelity Fund options will be manageable.</P>
                <P>
                    The Exchange believes that offering options on the Fidelity Fund will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of Ethereum and hedging vehicle to meet their investment needs in connection with Ethereum-related products and positions. The Exchange expects investors will transact in options on the Fidelity Fund in the unregulated over-the-counter (“OTC”) options market,
                    <SU>32</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listing [sic] 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 the Fidelity Fund 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 the Fidelity Fund 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 options on ETFs, including ETFs that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals) that it currently lists and trades on the Exchange. The Exchange notes that quotation and last sale information for shares of the Fidelity Fund are available from the CTA high-speed lines. Quotation and last sale information for options on the Fidelity Fund will be available from OPRA and market data vendors.
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         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.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>33</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>34</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>35</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    In particular, the Exchange believes that the proposal to list and trade options on the Fidelity Fund 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 the Fidelity Fund will provide investors with an opportunity to realize the benefits of utilizing options on the Fidelity Fund, including cost efficiencies and increased hedging strategies. The Exchange believes that offering the Fidelity Fund options will benefit investors by providing them with a relatively lower-cost risk management tool, which will allow them to manage 
                    <PRTPAGE P="16337"/>
                    their positions and associated risks in their portfolios more easily in connection with exposure to the price of Ethereum and with Ethereum-related products and positions. Additionally, the Exchange's offering of the Fidelity Fund 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,
                    <SU>36</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as the Fidelity Fund and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     Ethereum rather than Bitcoin or 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.
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>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 Fidelity Fund 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. Additionally, as demonstrated above, the Fidelity Fund is characterized by a substantial number of shares that are widely held and actively traded. Fidelity Fund 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 options on ETFs, including permissible expirations, strike prices and minimum increments, and applicable position and exercise limits (including as proposed in the filing submitted by Exchange's affiliate, MIAX), and margin requirements, will govern the listing and trading of options on the Fidelity Fund in the same manner.</P>
                <P>The Exchange believes the proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits for options for the Fidelity Fund is 25,000 contracts, which is currently the lowest limit applicable to any equity options (including ETF options) and the position and exercise limits that apply to comparable ETFs that hold Bitcoin. The Exchange believes the proposed position and exercise limits are extremely conservative for Fidelity Fund options given the trading volume and outstanding shares for the Fidelity Fund.</P>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Fidelity Fund options. 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 Fidelity Fund options.</P>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to options on the Fidelity Fund that it applies to the Exchange's other options products.
                    <SU>37</SU>
                    <FTREF/>
                     The Exchange's staff will have access to the surveillance programs conducted by its affiliate exchanges, MIAX and MIAX Pearl, with respect to the underlying Fidelity Fund when conducting surveillances for market abuse or manipulation in the options on the Fidelity Fund. The Exchange will review activity in the underlying Fidelity Fund when conducting surveillances for market abuse or manipulation in the options on the Fidelity Fund. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining surveillance data from MIAX and MIAX Pearl, the Exchange will be able to obtain information from Cboe and other markets through ISG. In addition, the Exchange has a Regulatory Services Agreement with FINRA. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to amongst themselves and FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>38</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         The surveillance program includes real-time patterns for price and volume movements and post-trade surveillance patterns (
                        <E T="03">e.g.,</E>
                         spoofing, marking the close, pinging, phishing).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>The Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Fidelity Fund. Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Fidelity Fund.</P>
                <P>
                    Finally, the Commission has previously approved the listing and trading of options on other cryptocurrency backed commodity ETFs structured as trusts.
                    <SU>39</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 101699 (November 21, 2024), 89 FR 93757 (November 27, 2024) (SR-SAPPHIRE-2024-36) (Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities To List and Trade Options on the iShares Bitcoin Trust); 101745 (November 25, 2024), 89 FR 94784 (December 2, 2024) (SR-SAPPHIRE-2024-37) (Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, To List and Trade Options on the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, and the Bitwise Bitcoin ETF); 101730 (November 25, 2024), 89 FR 95301 (December 2, 2024) (SR-SAPPHIRE-2024-38) (Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities To List and Trade Options on the Fidelity Wise Origin Bitcoin Fund (the “Fidelity Fund”) and the ARK 21Shares Bitcoin ETF (the “ARK 21 Fund”).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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. In this regard and as indicated above, the Exchange notes that the rule change is being 
                    <PRTPAGE P="16338"/>
                    proposed as a competitive response to the filing submitted by Cboe.
                    <SU>40</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    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 options on the Fidelity Fund will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. Moreover, options on the Fidelity Fund will be subject to Exchange Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (including as proposed in the filing submitted by Exchange's affiliate, MIAX), and margin requirements. Also, and as stated above, the Exchange already lists options on other commodity ETFs structured as a trust.
                    <SU>41</SU>
                    <FTREF/>
                     Further, the Fidelity Fund would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other ETF for the Exchange to continue listing options on them.
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposal to list and trade options on the Fidelity Fund 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 Fidelity Fund 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 the Fidelity Fund. The Exchange notes that listing and trading Fidelity Fund 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.</P>
                <P>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 Fidelity Fund 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>Written comments were neither solicited nor received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>42</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>43</SU>
                    <FTREF/>
                     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 
                    <SU>44</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>45</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         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.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>46</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>47</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Fidelity Fund.
                    <SU>48</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Fidelity Fund, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Fidelity Fund. The proposal also establishes position and exercise limits for options on the Fidelity Fund and provides information regarding the surveillance procedures that will apply to Fidelity Fund options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Fidelity Fund options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>49</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102797 (April 9, 2025) (Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on Shares of the Fidelity Ethereum Fund).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-SAPPHIRE-2025-20 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <PRTPAGE P="16339"/>
                <FP>
                    All submissions should refer to file number SR-SAPPHIRE-2025-20. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-SAPPHIRE-2025-20 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>50</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>50</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06498 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102821; File No. SR-MIAX-2025-20]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits To Allow the Exchange To List and Trade Options on the Fidelity Ethereum Fund</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 9, 2025, Miami International Securities Exchange, LLC (“MIAX” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) a 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.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits, to list and trade options on the Fidelity Ethereum Fund (the “Fidelity Fund”).</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings,</E>
                     at MIAX's principal office, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits,
                    <SU>3</SU>
                    <FTREF/>
                     to allow the Exchange to list and trade options on the Fidelity Fund, designating the Fidelity Fund as appropriate for options trading on the Exchange.
                    <SU>4</SU>
                    <FTREF/>
                     This is a competitive filing based on similar proposals submitted by Cboe Exchange, Inc. (“Cboe”), which was approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange notes that its affiliate options exchanges, MIAX PEARL, LLC (“MIAX Pearl”) and MIAX Sapphire, LLC (“MIAX Sapphire”), submitted (or will submit) substantively similar proposals. The Exchange notes that all the rules of Chapter III of MIAX, including Exchange Rules 307 and 309, are incorporated by reference into the MIAX Pearl and MIAX Sapphire rulebooks. The Exchange also notes that all of the rules of Chapter III of MIAX, including Exchange Rules 307 and 309, and the rules of Chapter IV of MIAX, including Exchange Rule 402, are incorporated by reference into the MIAX Emerald, LLC (“MIAX Emerald”) rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         On May 23, 2024, the Securities and Exchange Commission (the “Commission”) approved proposals by NYSE Arca, Inc., The Nasdaq Stock Market LLC, and Cboe BZX Exchange, Inc. to list and trade the shares of 8 ether-based commodity-based trust shares and trust units. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, To List and Trade Shares of Ether-Based Exchange-Traded Products)(“Ether ETP Approval Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102797 (April 9, 2025) (Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on Shares of the Fidelity Ethereum Fund) (“Cboe Ether Approval Order”).
                    </P>
                </FTNT>
                <P>
                    Current Exchange Rule 402(i)(4) provides that securities deemed appropriate for options trading include shares or other securities (“Exchange Traded Fund Shares” or “ETFs”) that represent certain types of interests,
                    <SU>6</SU>
                    <FTREF/>
                      
                    <PRTPAGE P="16340"/>
                    including interests in certain specific trusts that hold financial instruments, money market instruments, or precious metals (which are deemed commodities).
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i), which permits options trading on exchange-traded funds (“ETFs”) that: (1) 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 (“Funds”), 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 
                        <PRTPAGE/>
                        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); (2) represent interests in a trust or similar entity that holds a specified non-U.S. currency or currencies deposited with the trust which when aggregated in some specified minimum number may be surrendered to the trust or similar entity 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”); (3) 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”); (4) are issued by the SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Silver ETF Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Palladium ETF Trust, the Aberdeen Standard Platinum ETF Trust, the Goldman Sachs Physical Gold ETF, the Sprott Physical Gold Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, or the ARK 21 Shares Bitcoin ETF; or (5) represent an interest in a registered investment company (“Investment Company”) organized as an open-end management company or similar entity, that invests in a portfolio of securities selected by the Investment Company's investment adviser consistent with the Investment Company's investment objectives and policies, which is issued in a specified aggregate minimum number in return for a deposit of a specified portfolio of securities and/or a cash amount with a value equal to the next determined net asset value (“NAV”), and when aggregated in the same specified minimum number, may be redeemed at a holder's request, which holder will be paid a specified portfolio of securities and/or cash with a value equal to the next determined NAV (“Managed Fund Share”); provided that all of the conditions listed in (5)(i) and 5(ii) are met.
                    </P>
                </FTNT>
                <P>
                    The Fidelity Fund is an Ethereum-backed commodity ETFs [sic] structured as trusts [sic]. Similar to any ETFs currently deemed appropriate for options trading under Exchange Rule 402(i), the investment objective of the Fidelity Fund is for its shares to reflect the performance of Ethereum (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to Ethereum without the complexities of Ethereum delivery. As is the case for ETFs currently deemed appropriate for options trading, the Fidelity Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of Ethereum and are designed to track Ethereum or the performance of the price of Ethereum and offer access to the Ethereum market.
                    <SU>7</SU>
                    <FTREF/>
                     The Fidelity Fund provides investors with cost-efficient alternatives that allow a level of participation in the Ethereum market through the securities market. The primary substantive difference between the Fidelity Fund and ETFs currently deemed appropriate for options trading are that ETFs may hold securities, certain financial instruments, and specified precious metals (which are deemed commodities), and Bitcoin (which is also deemed a commodity), while the Fidelity Fund holds Ethereum (which is also deemed a commodity).
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that the Fidelity Fund satisfies the Exchange's initial listing standards for ETFs on which the Exchange may list options. Specifically, the Fidelity Fund satisfies the initial listing standards set forth in Exchange Rule 402(i)(5)(i), as is the case for other ETFs on which the Exchange lists options (including trusts that hold commodities). Exchange Rule 402(i)(5)(i) requires that the ETFs must either (1) meet the criteria and standards set forth in Exchange Rule 402(a) or 402(b),
                    <SU>8</SU>
                    <FTREF/>
                     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 Fidelity Fund satisfies Exchange Rule 402(i)(5)(i)(B), as it is subject to this creation and redemption process.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Subparagraphs (a) and (b) of Exchange Rule 402 provide for guidelines to be used by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <P>
                    While not required by the Rules for purposes of options listings, the Exchange believes that the Fidelity Fund satisfies the criteria and guidelines set forth in Exchange Rule 402. Pursuant to Exchange Rule 402(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.
                    <SU>9</SU>
                    <FTREF/>
                     The Fidelity Fund is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>10</SU>
                    <FTREF/>
                     The Exchange believes that the Fidelity Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Exchange Rule 403(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>
                    Based on the data presented in the Cboe filing,
                    <SU>11</SU>
                    <FTREF/>
                     as of December 23, 2024, the Fidelity Fund had 41,700,000 shares outstanding, which is nearly six times more than the minimum number of shares of a corporate stock (
                    <E T="03">i.e.,</E>
                     7,000,000 shares) that the Exchange generally requires to list options on that stock pursuant to Exchange Rule 402(b)(1). The Exchange believes this demonstrates that the Fidelity Fund is characterized by a substantial number of outstanding shares.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    Further, based on the data presented in the Cboe filing,
                    <SU>12</SU>
                    <FTREF/>
                     as of November 26, 2024, there were 38,170 beneficial holders of shares of the Fidelity Fund, which is significantly more than 2,000 beneficial holders (approximately 19 times more), which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to Exchange Rule 402(b)(2). Therefore, the Exchange believes the shares of the Fidelity Fund are widely held.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes that the shares of the Fidelity Fund are actively traded. Based on the data presented in the Cboe filing,
                    <SU>13</SU>
                    <FTREF/>
                     as of December 23, 2024, the total trading volume (by shares) and the approximate average daily volume (“ADV”) (in shares and notional) from July 23, 2024 (the date on which shares of the Fidelity Fund began trading) to December 23, 2024 for the Fidelity Fund was as follows:
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <PRTPAGE P="16341"/>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,15C,15C">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Trading volume
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(notional $)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">115,589,047</ENT>
                        <ENT>1,070,269</ENT>
                        <ENT>33,864,193</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As demonstrated above based on the data presented in the Cboe filing,
                    <SU>14</SU>
                    <FTREF/>
                     despite the fact that the Fidelity Fund has been trading for approximately five months as of December 23, 2024, its total trading volume as of that date was substantially higher than 2,400,000 shares (more than 48 times that amount), which is the minimum 12-month volume the Exchange generally requires for a corporate stock in order to list options on that security as set forth in Rule 402(b)(4). Additionally, as of December 23, 2024, the trading volume for the Fidelity Fund was in the top 5% of all ETFs that are currently trading. The Exchange believes this data demonstrates the Fidelity Fund is characterized as having shares that are actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>Options on the Fidelity Fund will also be subject to the Exchange's continued listing standards set forth in Exchange Rule 403(g), for ETFs deemed appropriate for options trading pursuant to Exchange Rule 402(i). Specifically, Exchange Rule 403(g) provides that ETFs that were initially approved for options trading pursuant to Exchange Rule 402(i) shall be deemed not to meet the requirements for continued approval, and the Exchange shall not open for trading any additional series of option contracts of the class covering such ETFs, if the ETFs are delisted from trading pursuant to Exchange Rule 403(b)(4) or the ETFs 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 402(i)(5)(i)(A), in accordance with the terms of paragraphs (b)(1), (2), and (3) of Exchange Rule 403; (2) in the case of options covering ETFs approved for trading under Exchange Rule 402(i)(5)(i)(B) (as is the case for the Fidelity Fund), 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 ETFs 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.</P>
                <P>
                    Options on the Fidelity Fund will be physically settled contracts with American-style exercise.
                    <SU>15</SU>
                    <FTREF/>
                     Consistent with current Exchange Rule 404, 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 the Fidelity Fund 
                    <SU>16</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on the Fidelity Fund for trading on a weekly,
                    <SU>17</SU>
                    <FTREF/>
                     monthly,
                    <SU>18</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>19</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) that expire from 12 to 39 months from the time they are listed.
                    <SU>20</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 401, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(b). The monthly expirations are subject to certain listing criteria for underlying securities described within Exchange Rule 404 and its Interpretations and Policies. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Exchange Rule 404(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 404(e), 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy.13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy.03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 406(a).
                    </P>
                </FTNT>
                <P>
                    Pursuant to Exchange Rule 404, Interpretation and Policy .06, which governs strike prices of series of options on ETFs, the interval between strike prices of series of options on ETFs approved for options trading pursuant to Exchange Rule 402(i) shall be fixed at a price per share which is reasonably close to the price per share at which the underlying security is traded in the primary market at or about the same time such series of options is first open for trading on the Exchange, or at such intervals as may have been established on another options exchange prior to the initiation of trading on the Exchange. With respect to the Short Term Options Series or Weekly Program, during the month prior to expiration of an option class that is selected for the Short Term Option Series Program, the strike price intervals for the related non-Short Term Option (“Related non-Short Term Option”) shall be the same as the strike price intervals for the Short Term Option.
                    <SU>21</SU>
                    <FTREF/>
                     Specifically, the Exchange may open for trading Short Term Option Series at strike price intervals of (i) $0.50 or greater where the strike price is less than $100, and $1 or greater where the strike price is between $100 and $150 for all option classes that participate in the Short Term Options Series Program; (ii) $0.50 for option classes that trade in one dollar increments and are in the Short Term Option Series Program; or (iii) $2.50 or greater where the strike price is above $150.
                    <SU>22</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>23</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>24</SU>
                    <FTREF/>
                     and the $2.50 Strike Price Program.
                    <SU>25</SU>
                    <FTREF/>
                     Pursuant to Exchange Rule 510, where the price of a series of options on the Fidelity Fund 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 
                    <SU>26</SU>
                    <FTREF/>
                     consistent with the minimum increments for options on other ETFs listed on the 
                    <PRTPAGE P="16342"/>
                    Exchange. Any and all new series of the Fidelity Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 404 and 510, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy.02(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(f).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 510.
                    </P>
                </FTNT>
                <P>Fidelity Fund 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 Fidelity Fund options 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 402(i)(4).</P>
                <P>The Exchange also proposes to amend Rules 307 and 309. Specifically, the Exchange proposes to amend Interpretation and Policy .01 to Exchange Rule 307 to provide a position limit of 25,000 same side option contracts for the Fidelity Fund option. Additionally, pursuant to the proposed change to Interpretation and Policy .01 to Exchange Rule 309, the exercise limits for options on the Fidelity Fund will be equivalent to this proposed position limit.</P>
                <P>
                    The Exchange, based on the data presented in the Cboe filing,
                    <SU>27</SU>
                    <FTREF/>
                     determined these proposed position and exercise limits considering, among other things, the ADV (since trading of the Fidelity Fund began on July 23, 2024) and the outstanding shares of the Fidelity Fund (which as discussed above demonstrate that the Fidelity Fund is widely held and actively traded and thus justify these conservatively proposed position limits), as set forth below, along with market capitalization (as of December 23, 2024).
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s25,15C,15C,15C">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Outstanding
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Market
                            <LI>capitalization</LI>
                            <LI>($)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Fidelity Fund</ENT>
                        <ENT>1,070,269</ENT>
                        <ENT>41,700,000</ENT>
                        <ENT>1,433,229,000</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    The Exchange, used the data presented in the Cboe filing,
                    <SU>28</SU>
                    <FTREF/>
                     to then compare the number of outstanding shares of the Fidelity Fund to those of other ETFs. The approximate average position (and exercise limit) of ETF options with similar outstanding shares (as of December 31, 2024), as presented in the Cboe filing,
                    <SU>29</SU>
                    <FTREF/>
                     was approximately 102,703 contracts, which is significantly higher (approximately 4 times) than the proposed position and exercise limit of 25,000 contracts for Fidelity Fund options.
                    <SU>30</SU>
                    <FTREF/>
                     As discussed above and described in the Cboe filing,
                    <SU>31</SU>
                    <FTREF/>
                     shares of the Fidelity Fund are actively held and widely traded: (1) the Fidelity Fund (as of December 23, 2024) had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to Rule 402(b)(1); (2) the Fidelity Fund (as of November 26, 2024) had significantly more than 2,000 beneficial holders, which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to Rule 402(b)(2); and (3) the Fidelity Fund had a trading volume in the approximately five-month time period since it began trading substantially higher than 2,400,000 shares, which is the minimum 12-month volume the Exchange generally requires for a security in order to list options on that security as set forth in Rule 402(b)(3).
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         The position limits for those ETF options for which the underlying ETFs had similar outstanding shares were all 50,000 or above, and nearly half of them had position limits of 200,000 or 250,000 contracts.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    With respect to outstanding shares, if a market participant held the maximum number of positions possible pursuant to the proposed position and exercise limits, the equivalent shares represented by the proposed position/exercise limit would represent approximately 6.0% of the 41,700,000 current outstanding shares of the Fidelity Fund, as presented in the Cboe filing.
                    <SU>32</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>Therefore, if a market participant held the maximum permissible options positions in the Fidelity Fund options and exercised all of them at the same time, that market participant would control a small percentage of the outstanding shares of the Fidelity Fund.</P>
                <P>Rule 307 provides two methods of qualifying for a position limit tier above 25,000 option contracts. The first method is based on six-month trading volume in the underlying security, and the second method is based on slightly lower six-month trading volume and number of shares outstanding in the underlying security. An underlying stock or ETF that qualifies for method two based on trading volume and number of shares outstanding would be required to have the minimum number of outstanding shares as shown in middle column of the table below.</P>
                <P>The table below, which provides the equivalent shares of the position limits applicable to equity options, including ETFs, further represents the percentages of the minimum number of outstanding shares that an underlying stock or ETF must have to qualify for that position limit (under the second method described above).</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Position/exercise limit
                            <LI>(in equivalent shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Minimum
                            <LI>outstanding</LI>
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage of
                            <LI>outstanding</LI>
                            <LI>shares</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">2,500,000</ENT>
                        <ENT>6,300,000</ENT>
                        <ENT>40.0</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5,000,000</ENT>
                        <ENT>40,000,000</ENT>
                        <ENT>12.5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">7,500,000</ENT>
                        <ENT>120,000,000</ENT>
                        <ENT>6.3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20,000,000</ENT>
                        <ENT>240,000,000</ENT>
                        <ENT>8.3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">25,000,000</ENT>
                        <ENT>300,000,000</ENT>
                        <ENT>8.3</ENT>
                    </ROW>
                </GPOTABLE>
                <PRTPAGE P="16343"/>
                <P>
                    The equivalent shares represented by the proposed position and exercise limits for the Fidelity Fund as a percentage of outstanding shares of the Fidelity Fund is significantly lower than the percentage for the lowest possible position limit for equity options of 25,000, which is the position limit the Exchange is proposing for the Fidelity Fund Options.
                    <SU>33</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         As these percentages are based on the minimum number of outstanding shares an underlying security must have to qualify for the applicable position limit, these are the highest possible percentages that would apply to any option subject to that position and exercise limit. 6,300,000 is the minimum number of outstanding shares an underlying security must have for the Exchange to continue to list options on that security, so this would be the smallest number of outstanding shares permissible for any corporate option that would have a position limit of 25,000 contract. 
                        <E T="03">See</E>
                         Rule 404, Interpretation and Policy .01. This rule applies to corporate stock options but not ETF options, which currently have no requirement regarding outstanding shares of the underlying ETF for the Exchange to continue listing options on that ETF. Therefore, there may be ETF options trading for which the 25,000 contract position limits represents an even larger percentage of outstanding shares of the underlying ETF than set forth above.
                    </P>
                </FTNT>
                <P>
                    Further, the proposed position and exercise limits for the Fidelity Fund option is equal to the lowest position and exercise limits available in the options industry for equity options, are extremely conservative and more than appropriate given the market capitalization, average daily volume, and high number of outstanding shares of the Fidelity Fund. The proposed position and exercise limit for the Fidelity Fund is also equal to the position and exercise limits for ETFs that hold Bitcoin, as recently approved by the Commission.
                    <SU>34</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 101717 (November 22, 2024), 89 FR 94828 (November 29, 2024) (SR-MIAX-2024-43)(“Bitcoin ETF Option Approval”); See also Exchange Rule 307, Interpretations and Policies .01 and Exchange Rule 309, proposed Interpretations and Policies .01
                    </P>
                </FTNT>
                <P>All of the above information demonstrates that the proposed position and exercise limits for the Fidelity Fund options are more than reasonable and appropriate. The trading volume, ADV, and outstanding shares of the Fidelity Fund demonstrate that this fund is actively traded and widely held, and proposed position and exercise limits are well below those of other ETFs with similar market characteristics. The proposed position and exercise limits are the lowest position and exercise limits available for equity options in the industry, are extremely conservative, and are more than appropriate given the Fidelity Fund's market capitalization, ADV, and high number of outstanding shares.</P>
                <P>The Exchange further notes that Exchange Rule 1502, which governs margin requirements applicable to trading on the Exchange, including options on ETFs, will also apply to the trading of the Fidelity Fund options. Notwithstanding the position limits in Exchange Rule 307(d) and exercise limits in Exchange Rule 309, the Exchange proposes the position and exercise limits for the options on the Fidelity Fund to be 25,000 contracts on the same side pursuant to proposed Interpretation and Policy .01 to Exchange Rule 307 and proposed Interpretation and Policy .01 to Exchange Rule 309.</P>
                <P>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 the Fidelity Fund. Also the Exchange represents 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 the proposed options on the Fidelity Fund.</P>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to the Fidelity Fund options that it applies to the Exchange's other options products.
                    <SU>35</SU>
                    <FTREF/>
                     The Exchange's staff will have access to the surveillance programs conducted by its affiliate exchanges, MIAX Pearl and MIAX Sapphire, with respect to trading in the shares of the underlying Fidelity Fund when conducting surveillances for market abuse or manipulation in the options on the Fidelity Fund. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining surveillance data from MIAX Pearl and MIAX Sapphire, the Exchange will be able to obtain information regarding trading in the shares of the underlying Fidelity Fund from Cboe and other markets through ISG. In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”). Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities amongst themselves and to FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>36</SU>
                    <FTREF/>
                     The underlying shares of spot Ethereum exchange-traded products (“ETPs”), including the Fidelity Fund, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs,
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         The surveillance program includes real-time patterns for price and volume movements and post-trade surveillance patterns (
                        <E T="03">e.g.,</E>
                         spoofing, marking the close, pinging, phishing).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <EXTRACT>
                    <FP>
                        [e]ach Exchange has a comprehensive surveillance sharing agreement with the [Chicago Mercantile Exchange (“CME”)] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.
                        <SU>37</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             
                            <E T="03">See</E>
                             Ethereum ETP Approval Order, 89 FR 46938.
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>38</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the Fidelity Fund,
                    <SU>39</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Fidelity Fund. Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to 
                    <PRTPAGE P="16344"/>
                    effectively monitor the trading of options on the Fidelity Fund.
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR 46939.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>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 the Fidelity Fund up to the number of expirations currently permissible under the Rules. Because the proposal is limited to one class, the Exchange believes any additional traffic that may be generated from the introduction of the Fidelity Fund options will be manageable.</P>
                <P>
                    The Exchange believes that offering options on the Fidelity Fund will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of Ethereum and hedging vehicle to meet their investment needs in connection with Ethereum-related products and positions. The Exchange expects investors will transact in options on the Fidelity Fund in the unregulated over-the-counter (“OTC”) options market,
                    <SU>40</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed 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 the Fidelity Fund 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 the Fidelity Fund 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 options on ETFs, including ETFs that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals) that it currently lists and trades on the Exchange. The Exchange notes that quotation and last sale information for shares of the Fidelity Fund are available from the CTA high-speed lines. Quotation and last sale information for options on the Fidelity Fund will be available from OPRA and market data vendors
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         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.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>41</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>42</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>43</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    In particular, the Exchange believes that the proposal to list and trade options on the Fidelity Fund 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 the Fidelity Fund will provide investors with a greater opportunity to realize the benefits of utilizing options on the Fidelity Fund, including cost efficiencies and increased hedging strategies. The Exchange believes that offering the Fidelity Fund 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 risks in their portfolios more easily in connection with exposure to the price of Ethereum and with Ethereum-related products and positions. Additionally, the Exchange's offering of the Fidelity Fund 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,
                    <SU>44</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as the Fidelity Fund and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     Ethereum rather than Bitcoin or 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.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>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 the Fidelity Fund 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. Additionally, as demonstrated above, the Fidelity Fund is characterized by a substantial number of shares that are widely held and actively traded. Fidelity Fund 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 options on ETFs, including permissible expirations, strike prices and minimum increments, and applicable position and exercise limits (as proposed herein), and margin requirements, will govern the listing and trading of options on the Fidelity Fund in the same manner.</P>
                <P>
                    The Exchange believes the proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits for options for the Fidelity Fund is 25,000 contracts, which is currently the lowest limit applicable to any equity options (including ETF options) and the position and exercise limits that apply to comparable ETFs that hold Bitcoin. The Exchange believes the proposed position and exercise limits are extremely conservative for Fidelity Fund options 
                    <PRTPAGE P="16345"/>
                    given the trading volume and outstanding shares for the Fidelity Fund. The information above demonstrates that the average position and exercise limits of options on ETFs with comparable outstanding shares and trading volume to those of the Fidelity Fund are significantly higher than the proposed position and exercise limits for Fidelity Fund options. Therefore, the proposed position and exercise limits for Fidelity Fund options are conservative relative to options on ETFs with comparable market characteristics.
                </P>
                <P>
                    Further, given that the issuer of the Fidelity Fund may create and redeem shares that represent an interest in Ethereum, the Exchange believes it is relevant to compare the size of a position limit to the market capitalization of the Ethereum market. According to Cboe's filing,
                    <SU>45</SU>
                    <FTREF/>
                     as of December 23, 2024, the global supply of Ethereum was approximately 120,000,000 coins, and the price of one Ethereum coin was approximately $3,494.25,
                    <SU>46</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $419.31 billion. Consider the proposed position and exercise limit of 25,000 option contracts for the Fidelity Fund option. A position and exercise limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 of Fidelity Fund shares (if that market participant exercised all its options). Using a share price of $34.37 on December 23, 2024, the value of 2,500,000 shares of the Fidelity Fund at that price is $85,925,000, and the approximate percentage of that value of the size of the Ethereum market is 0.02%. Therefore, if a market participant with the maximum 25,000 same side contracts in Fidelity Fund options exercised all positions at one time, such an event would have no practical impact on the Ethereum market.
                </P>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Ethereum Price (ETH), Market Cap, Price Today &amp; Chart History—Blockworks.
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes the proposed position and exercise limits are appropriate given position limits for Ethereum futures. For example, the Chicago Mercantile Exchange (“CME”) imposes a position limit of 8,000 futures (for the initial spot month) on its Ethereum futures contract.
                    <SU>47</SU>
                    <FTREF/>
                     According to Cboe's filing,
                    <SU>48</SU>
                    <FTREF/>
                     on December 23, 2024, CME Dec 24 Ethereum Futures settled at approximately $3,418.00. A position of 8,000 CME Ethereum futures, therefore, would have a notional value of $1,367,200,000. A position of approximately 397,789 option contracts would equate to that notional value.
                    <SU>49</SU>
                    <FTREF/>
                     This approximate number of option contracts for the Fidelity Fund that equate to the notional value of CME Ethereum futures is significantly higher than the proposed limit of 25,000 options contract for the Fidelity Fund option. The fact that many options ultimately expire out-of-the-money and thus are not exercised for shares of the underlying, while the delta of a Ethereum Future is 1, further demonstrates how conservative the proposed limit of 25,000 options contracts are for the Fidelity Fund options. The Exchange notes, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>50</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>51</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. Considering CME's position limits on futures for Ethereum, the Exchange believes that that the proposed same side position limits are more than appropriate for Fidelity Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 349 (description of CME Ether Futures) and Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices. Each CME Ethereum futures contract is valued at 50 Ethereum as defined by the CME CF Ether Reference Rate (“BRR”). 
                        <E T="03">See</E>
                         CME Rule 35001.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         The notional value of the futures is calculated as follows: 8,000 futures × 50 (the futures multiplier) × $3,418 (the price of one future) = $1,367,200,000. The number of option contracts that equates to that notional value is calculated as follows: $1,367,200,000/notional value of one option contract ($34.37 (share price of Fidelity Fund) × 100 (option multiplier)) = 397,789 option contracts.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange believes the proposed position and exercise limits will have no material impact to the supply of Ethereum. For example, consider again the proposed position limit of 25,000 option contracts for the Fidelity Fund option. As noted above, a position limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the Fidelity Fund (if that market participant exercised all its options). According to Cboe's filing,
                    <SU>52</SU>
                    <FTREF/>
                     as of December 23, 2024, the Fidelity Fund had 41,700,000 shares outstanding. This means that the approximate number of market participants that could hold the maximum of 25,000 same side positions in the Fidelity Fund that would equate to the number of shares outstanding of that Fund is 16.
                </P>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>This means if 16 market participants had 25,000 same side positions in Fidelity Fund options, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. The Exchange believes it is highly unlikely for such an event to occur; however, even if either such event did occur, the Exchange would not expect the Fidelity Fund to be under stress because such an event would merely induce the creation of more shares through the trust's creation and redemption process.</P>
                <P>
                    As of December 23, 2024, the global supply of Ethereum was approximately 120,000,000, and the price of one Ethereum coin was approximately $3,418.00,
                    <SU>53</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $419.31 billion. Based on the $34.37 price of a Fidelity Fund share on December 23, 2024, a market participant could have redeemed one Ethereum for approximately 99 Fidelity Fund shares. Another 11,880,000,000 Fidelity Fund shares could be created before the then-circulating global supply of Ethereum was exhausted. As a result, 4,752 market participants would have to simultaneously exercise 25,000 same side positions in Fidelity Fund options to receive shares of the Fidelity Fund holding the entire global supply of Ethereum. Unlike the Fidelity Fund, the number of shares that corporations may issue is limited. However, like corporations, which authorize additional shares, repurchase shares, or split their shares, the Fidelity Fund may 
                    <PRTPAGE P="16346"/>
                    create, redeem, or split shares in response to demand. Additionally, the supply of Ethereum is unlimited.
                    <SU>54</SU>
                    <FTREF/>
                     The current supply of Ethereum is larger than the available supply of most securities.
                    <SU>55</SU>
                    <FTREF/>
                     Given the significant unlikelihood of any of these events ever occurring, the Exchange does not believe options on the Fidelity Fund should be subject to position and exercise limits even lower than those proposed (which are already equal to the lowest available limit for equity options in the industry) to protect the supply of Ethereum.
                </P>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         
                        <E T="03">See</E>
                         Ethereum Price (ETH), Market Cap, Price Today &amp; Chart History—Blockworks.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         
                        <E T="03">See</E>
                         Ethereum Price (ETH), Market Cap, Price Today &amp; Chart History—Blockworks. see also Amendment No. 5 to Form S-1 Registration Statement No. 333-278249, Fidelity Fund, filed July 17, 2024, at 17 (noting that approximately 1,700 Ethereum are issued per day, subject to various factors).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         The market capitalization of Ethereum would rank in the top 25 among securities. 
                        <E T="03">See https://companiesmarketcap.com/usa/largest-companies-in-the-usa-by-market-cap/.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange believes the available supply of Ethereum is not relevant when establishing position limits for options overlying the Fidelity Fund.
                    <SU>56</SU>
                    <FTREF/>
                     Position and exercise limits are not a tool that should be used to address a potential limited supply of the underlying of an underlying. Position and exercise limits do not limit the total number of options that may be held, but rather they limit the number of positions a single customer may hold or exercise at one time.
                    <SU>57</SU>
                    <FTREF/>
                     “Since the inception of standardized options trading, the options exchanges have had rules imposing limits on the aggregate number of options contracts that a member or customer could hold or exercise.” 
                    <SU>58</SU>
                    <FTREF/>
                     Position and exercise limit rules are intended “to prevent the establishment of options positions that can be used or might create incentives to manipulate or disrupt the underlying market so as to benefit the options position. In particular, position and exercise limits are designed to minimize the potential for mini-manipulations and for corners or squeezes of the underlying market. In addition, such limits serve to reduce the possibility for disruption of the options market itself, especially in illiquid options classes.” 
                    <SU>59</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         The Exchange is unaware of any proposed rule change related to position and exercise limits for any equity option (including commodity ETF options) for which the Commission required consideration of whether the available supply of an underlying (whether it be a corporate stock or an ETF) or the contents of an ETF (commodity or otherwise) should be considered when an exchange proposed to establish those limits, other than recently with respect to ETFs that hold Bitcoin. See, 
                        <E T="03">e.g.,</E>
                         Securities Exchange Act Release No. 57894 (May 30, 2008), 73 FR 32061 (June 5, 2008) (SR-CBOE-2005-11) (approval order in which the Commission stated that the “listing and trading of Gold Trust Options will be subject to the exchanges' rules pertaining to position and exercise limits and margin”); compare to Bitcoin ETF Option Approval. The Exchange notes when the Commission approved the filing to list options on an ETF holding gold, filing, the position limits in Rule 8.30 were the same as they are today. For reference, the current position and exercise limits for options on SPDR Gold Shares ETF (“GLD”) and options on iShares Silver Trust (“SLV”) are 250,000 contracts, or 10 times that proposed position and exercise limit for the Fidelity Fund options.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         For example, suppose an option has a position limit of 25,000 option contracts and there are a total of 10 investors trading that option. If all 10 investors max out their positions, that would result in 250,000 option contracts outstanding at that time. However, suppose 10 more investors decide to begin trading that option and also max out their positions. This would result in 500,000 option contracts outstanding at that time. An increase in the number of investors could cause an increase in outstanding options even if position limits remain unchanged.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange notes that a Registration Statement on Form S-1 was filed with the Commission for the Fidelity Fund, which described the supply of Ethereum and the potential limits to that supply.
                    <SU>60</SU>
                    <FTREF/>
                     The Registration Statement permits an unlimited number of shares of the Fidelity Fund to be created. Further, the Commission approved the listing and trading of shares of the Fidelity Fund, which approval did not comment on the sufficient supply of Ethereum or address whether there was a risk that permitting an unlimited number of shares for the Fidelity Fund would impact the supply of Ethereum.
                    <SU>61</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the Commission had ample time and opportunity to consider whether the supply of Ethereum was sufficient to permit the creation of unlimited Fidelity Fund shares, and does not believe considering this supply with respect to the establishment of position and exercise limits is appropriate given its lack of relevance to the purpose of position and exercise limits. However, given the significant size of the Ethereum supply, the proposed positions limit is more than sufficient to protect investors and the market.
                </P>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 5 to Form S-1 Registration Statement No. 333-278249, Fidelity Fund, filed July 17, 2024, at 17.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>
                    Based on the above information demonstrating, among other things, that the Fidelity Fund is characterized by a substantial number of outstanding shares that are actively traded and widely held, the Exchange believes the proposed position and exercise limits are extremely conservative compared to those of ETF options with similar market characteristics. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying as well as the Ethereum market.
                    <SU>62</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Fidelity Fund options. As discussed above, 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 Fidelity Fund options.</P>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to options on the Fidelity Fund that it applies to the Exchange's other options products.
                    <SU>63</SU>
                    <FTREF/>
                     The Exchange's staff will have access to the surveillance programs conducted by its affiliate exchanges, MIAX Pearl and MIAX Sapphire, with respect to the underlying Fidelity Fund when conducting surveillances for market abuse or manipulation in the options on the Fidelity Fund. The Exchange will review activity in the underlying Fidelity Fund when conducting surveillances for market abuse or manipulation in the options on the Fidelity Fund. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining surveillance data from MIAX Pearl and MIAX Sapphire, the Exchange will be able to obtain information from Cboe and other markets through ISG. In addition, the Exchange has a Regulatory Services Agreement with FINRA. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to amongst themselves and FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>64</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         The surveillance program includes real-time patterns for price and volume movements and post-trade surveillance patterns (
                        <E T="03">e.g.,</E>
                         spoofing, marking the close, pinging, phishing).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national 
                        <PRTPAGE/>
                        securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <PRTPAGE P="16347"/>
                <P>The Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Fidelity Fund. Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Fidelity Fund.</P>
                <P>
                    Finally, the Commission has previously approved the listing and trading of options on other cryptocurrency backed commodity ETFs structured as trusts.
                    <SU>65</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 101698 (November 21, 2024), 89 FR 93802 (November 27, 2024) (SR-MIAX-2024-40) (Self-Regulatory Organizations; MIAX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits To Allow the Exchange To List and Trade Options on the iShares Bitcoin Trust); 101716 November 22, 2024), 89 FR 94856 (November 29, 2024) (SR-MIAX-2024-42) (Self-Regulatory Organizations; MIAX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits To Allow the Exchange To List and Trade Options on the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, and the Bitwise Bitcoin ETF); 101717 (November 22, 2024), 89 FR 94828 (November 29, 2024) (SR-MIAX-2024-43) (Self-Regulatory Organizations; MIAX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits To Allow the Exchange To List and Trade Options on the Fidelity Wise Origin Bitcoin Fund (the “Fidelity Fund”) and the ARK 21Shares Bitcoin ETF (the “ARK 21 Fund”)).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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. In this regard and as indicated above, the Exchange notes that the rule change is being proposed as a competitive response to the filing submitted by Cboe.
                    <SU>66</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>66</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    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 options on the Fidelity Fund will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. Moreover, options on the Fidelity Fund will be subject to Exchange Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (including as proposed to modify herein), and margin requirements. Also, and as stated above, the Exchange already lists options on other cryptocurrency backed commodity ETFs structured as trusts.
                    <SU>67</SU>
                    <FTREF/>
                     Further, the Fidelity Fund would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other ETF for the Exchange to continue listing options on them.
                </P>
                <FTNT>
                    <P>
                        <SU>67</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposal to list and trade options on the Fidelity Fund 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 the Fidelity Fund 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 the Fidelity Fund. The Exchange notes that listing and trading Fidelity Fund 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.</P>
                <P>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 the Fidelity Fund 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>Written comments were neither solicited nor received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>68</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>69</SU>
                    <FTREF/>
                     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 
                    <SU>70</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>71</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>68</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>69</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>70</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>71</SU>
                         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.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>72</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>73</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Fidelity Fund.
                    <SU>74</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Fidelity Fund, including, among other things, information 
                    <PRTPAGE P="16348"/>
                    regarding trading volume, the number of beneficial holders, and the market capitalization of the Fidelity Fund. The proposal also establishes position and exercise limits for options on the Fidelity Fund and provides information regarding the surveillance procedures that will apply to Fidelity Fund options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Fidelity Fund options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>75</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>72</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>73</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>74</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>75</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-MIAX-2025-20 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-MIAX-2025-20. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-MIAX-2025-20 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>76</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>76</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06499 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102829; File No. SR-CboeBZX-2025-054]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules To Allow the Exchange To List Options on the iShares Ethereum Trust</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 9, 2025, Cboe BZX Exchange, Inc. (“Exchange” or “BZX”) 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 Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe BZX Exchange, Inc. (the “Exchange” or “BZX”) proposes to amend its Rules to allow the Exchange to list options on the iShares Ethereum Trust (the “Trust”). The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Rule 19.3 regarding the criteria for underlying securities. Specifically, the Exchange proposes to amend Rule 19.3(i) to allow the Exchange to list and trade options on shares or other securities (“Fund Shares”) that are principally traded on a national securities exchange and are defined as an “NMS stock” under Rule 600 of Regulation NMS and that represent interests in the Trust. This is a competitive filing based on a similar proposal submitted by Nasdaq ISE, LLC (“ISE”), which was recently approved by the Securities and Exchange 
                    <PRTPAGE P="16349"/>
                    Commission (the “Commission”).
                    <SU>5</SU>
                    <FTREF/>
                     Current Rule 19.3(i) provides that, subject to certain other criteria set forth in that Rule, securities deemed appropriate for options trading include Fund Shares that represent certain types of interests,
                    <SU>6</SU>
                    <FTREF/>
                     including interests in certain specific trusts that hold financial instruments, money market instruments, precious metals (which are deemed commodities), or Bitcoin (which is another crypto currency and deemed a commodity). In addition, Rule 19.3(i) requires that Fund Shares (1) meet the criteria and standards set forth in Rule 19.3(a) and (b),
                    <SU>7</SU>
                    <FTREF/>
                     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 Fund Shares 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.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100661 (August 6, 2024), 89 FR 65690 (August 12, 2024) (SR-ISE-2024-35); and Securities Exchange Act Release No. 102798 (April 9, 2025) (“ISE Approval”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i), which permits options trading on Fund Shares that (1) represent interests in registered investment companies (or series thereof) organized as open-end management investment companies, unit investment trusts or similar entities, and that hold portfolios of securities comprising or otherwise based on or representing investments in indexes or portfolios of securities (or that hold securities in one or more other registered investment companies that themselves hold such portfolios of securities) (“Funds ”) and/or financial instruments including, but not limited to, stock index futures contracts, options on futures, options on securities and indexes, 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”) constituting or otherwise based on or representing an investment in an index or portfolio of securities and/or Financial Instruments and Money Market Instruments, or (2) 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 (3) represent interests in a trust or similar entity that holds a specified non-U.S. currency or currencies 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 (4) represent interests in the SPDR Gold Trust or are issued by the iShares COMEX Gold Trust or iShares Silver Trust, the Aberdeen Standard Physical Silver Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Physical Palladium Trust, the Aberdeen Standard Physical Platinum Trust, the Sprott Physical Gold Trust, the Goldman Sachs Physical Gold ETF, or the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Rule 19.3(a) and (b) sets forth the criteria that underlying securities must satisfy for option contracts on those underlying securities to be eligible for listing and trading on the Exchange.
                    </P>
                </FTNT>
                <P>The Exchange proposes to add the Trust to the list of Fund Shares on which the Exchange may list options in Rule 19.3(i). The shares are issued by the Trust, a Delaware statutory trust. The Trust will operate pursuant to a trust agreement (the “Trust Agreement”) between the Sponsor, BlackRock Fund Advisors (the “Trustee”) as the trustee of the Trust and will appoint Wilmington Trust, National Association, as Delaware Trustee of the Trust (the “Delaware Trustee”) by such time that the Registration Statement is effective. The Trust issues Shares representing fractional undivided beneficial interests in its net assets. The assets of the Trust will consist only of ether (“ether” or “ETH”) held by a custodian on behalf of the Trust, except under limited circumstances when transferred through the Trust's prime broker temporarily (described below), and cash. Neither the Trust, nor the Sponsor, nor the Ether Custodian (as defined below), nor any other person associated with the Trust will, directly or indirectly, engage in action where any portion of the Trust's ETH becomes subject to the Ethereum proof-of-stake validation or is used to earn additional ETH or generate income or other earnings. Coinbase Custody Trust Company, LLC (the “Ether Custodian”), is the custodian for the Trust's ether holdings, and maintains a custody account for the Trust (“Custody Account”); Coinbase, Inc. (the “Prime Execution Agent”), an affiliate of the Ether Custodian, is the prime broker for the Trust and maintains a trading account for the Trust (“Trading Account”); and The Bank of New York Mellon is the custodian for the Trust's cash holdings (the “Cash Custodian” and together with the Ether Custodian, the “Custodians”) and the administrator of the Trust (the “Trust Administrator”). Under the Trust Agreement, the Trustee may delegate all or a portion of its duties to any agent, and has delegated the bulk of the day-to-day responsibilities to the Trust Administrator and certain other administrative and record-keeping functions to its affiliates and other agents. The Trust is not an investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”).</P>
                <P>The investment objective of the Trust is to reflect generally the performance of the price of ether. The Trust seeks to reflect such performance before payment of the Trust's expenses and liabilities. The Shares are intended to constitute a simple means of making an investment similar to an investment in ether through the public securities market rather than by acquiring, holding and trading ether directly on a peer-to-peer or other basis or via a digital asset platform. The Shares have been designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in ether, while at the same time having an intrinsic value that reflects, at any given time, the investment exposure to the ether owned by the Trust at such time, less the Trust's expenses and liabilities. Although the Shares are not the exact equivalent of a direct investment in ether, they provide investors with an alternative method of achieving investment exposure to ether through the public securities market, which may be more familiar to them.</P>
                <P>
                    An investment in the Shares is backed by ether held by the Ether Custodian on behalf of the Trust. All of the Trust's ether will be held in the Custody Account, other than the Trust's ether which is temporarily maintained in the Trading Account under limited circumstances, 
                    <E T="03">i.e.,</E>
                     in connection with creation and redemption Basket 
                    <SU>8</SU>
                    <FTREF/>
                     activity or sales of ether deducted from the Trust's holdings in payment of Trust expenses or the Sponsor's fee (or, in extraordinary circumstances, upon liquidation of the Trust). The Custody Account includes all of the Trust's ether held at the Ether Custodian, but does not include the Trust's ether temporarily maintained at the Prime Execution Agent in the Trading Account from time to time. The Ether Custodian will keep all of the private keys associated with the Trust's ether held in the Custody Account in “cold storage”.
                    <SU>9</SU>
                    <FTREF/>
                      
                    <PRTPAGE P="16350"/>
                    The hardware, software, systems, and procedures of the Ether Custodian may not be available or cost-effective for many investors to access directly.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         The Trust issues and redeems Shares only in blocks of 40,000 or integral multiples thereof. A block of 40,000 Shares is called a “Basket.” These transactions take place in exchange for ether.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The term “cold storage” refers to a safeguarding method by which the private keys corresponding to the Trust's ether are generated and stored in an offline manner, subject to layers of procedures designed to enhance security. Private keys are generated by the Ether Custodian in offline 
                        <PRTPAGE/>
                        computers that are not connected to the internet so that they are more resistant to being hacked.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot ether as well as a hedging vehicle to meet their investment needs in connection with ether products and positions. Similar to other commodity ETFs in which options may be listed on the Exchange (
                    <E T="03">e.g.,</E>
                     SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, or the Aberdeen Standard Physical Gold Trust),
                    <SU>10</SU>
                    <FTREF/>
                     the proposed ETF is a trust that essentially offers the same objectives and benefits to investors.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i).
                    </P>
                </FTNT>
                <P>Options on the Trust 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 options on the Trust on the Exchange. Today, these rules apply to options on the various commodities ETFs deemed appropriate for options trading on the Exchange pursuant to Rule 19.3(i).</P>
                <P>
                    Pursuant to Rule 19.3(a), a security (which includes a Fund Share) on which options may be listed and traded on the Exchange must be registered (with the Commission) and be an NMS stock (as defined in Rule 600 of Regulation NMS under the Securities Exchange Act of 1934, as amended (the “Act”)), and be characterized by a substantial number of outstanding shares that are widely held and actively traded.
                    <SU>11</SU>
                    <FTREF/>
                     Additionally, Rule 19.3(i)(1) requires that Fund Shares either (1) meet the criteria and standards set forth in Rule 19.3(a) and (b),
                    <SU>12</SU>
                    <FTREF/>
                     or (2) are available for creation or redemption each business day in cash or in kind from the investment company, commodity pool or other entity at a price related to net asset value, and the investment company, commodity pool or other entity is obligated to provide that Fund Shares may be created even if some or all of the securities and/or cash required to be deposited have not been received by the Fund, the unit investment trust or the management investment company, provided the authorized creation participant has undertaken to deliver the securities and/or cash as soon as possible and such undertaking is secured by the delivery and maintenance of collateral consisting of cash or cash equivalents satisfactory to the Fund, all as described in the Fund's or unit trust's prospectus. The Trust satisfies Rule 19.3(i)(1)(B), as each is subject to this creation and redemption process.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 19.3(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Rule 19.3(a) and (b) sets forth the criteria an underlying security must meet for the Exchange to be able to list options on the underlying.
                    </P>
                </FTNT>
                <P>Options on the Trust will be subject to the Exchange's continued listing standards set forth in Rule 19.4(g) for Fund Shares deemed appropriate for options trading pursuant to Rule 19.3(i). Specifically, 19.4(g) provides that Fund Shares that were initially approved for options trading pursuant to Rule 19.3 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 Fund Shares if the security ceases to be an NMS stock (see Rule 19.4(b)(4)). Additionally, the Exchange will not open for trading any additional series of option contracts of the class covering Fund Shares in any of the following circumstances: (1) in the case of options covering Fund Shares approved for trading under Rule 19.3(i)(1)(A), in accordance with the terms of Rule 19.4(b)(1), (2) and (3); (2) in the case of options covering Fund Shares approved pursuant to Rule 19.3(i)(1)(B), following the initial 12-month period beginning upon the commencement of trading in the Fund Shares on a national securities exchange and are defined as NMS stock under Rule 600 of Regulation NMS, there were fewer than 50 record and/or beneficial holders of such Fund Shares for 30 consecutive days; (3) the value of the index, non-U.S. currency, 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 or Money Market Instruments, or portfolio of securities on which the 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.</P>
                <P>
                    Options on the Trust will be physically settled contracts with American-style exercise.
                    <SU>13</SU>
                    <FTREF/>
                     Consistent with current Rule 19.6, which governs the opening of options series on a specific underlying security (including Fund Shares), the Exchange will open at least one expiration month for options on the Trust 
                    <SU>14</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on the Trust for trading on a weekly,
                    <SU>15</SU>
                    <FTREF/>
                     monthly,
                    <SU>16</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>17</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) that expire from 12 to 39 months from the time they are listed.
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Rule 19.2, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">and</E>
                         Equity Options Product Specifications January 3, 2024), available at Equity Options Specifications (cboe.com); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6(b). The monthly expirations are subject to certain listing criteria for underlying securities described within Rule 19.3. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Rule 19.6(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. 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .05.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .08.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Rule 19.8.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rule 19.6, Interpretation and Policy .01, which governs strike prices of series of options on Fund Shares, the interval of strike prices for series of options on the Trust will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>19</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>20</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>21</SU>
                    <FTREF/>
                      
                    <PRTPAGE P="16351"/>
                    the $2.50 Strike Price Program,
                    <SU>22</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>23</SU>
                    <FTREF/>
                     Pursuant to Rule 21.5, where the price of a series of a Trust 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.
                    <SU>24</SU>
                    <FTREF/>
                     Any and all new series of Trust options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 19.6 and 21.5, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Rule 19.6, Interpretations and Policies .05, .08, and .04 specifically sets forth intervals between strike prices on Quarterly Options Series, Short Term Option Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .06.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6(d)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         If options on an Ethereum Fund 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. 
                        <E T="03">See</E>
                         Rule 21.5(d) (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>
                    Trust options will trade in the same manner as any other Fund Share options on the Exchange. The Exchange Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Trust options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange, including the precious-metal and Bitcoin-backed commodity Fund Shares already deemed appropriate for options trading on the Exchange pursuant to current Rule 19.3(i).
                    <SU>25</SU>
                    <FTREF/>
                     Position and exercise limits for options on ETFs, including options on Ethereum Funds, are determined pursuant to Rules 18.7 and 18.9.
                    <SU>26</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See, e.g.,</E>
                         SPDR Gold Trust, iShares COMEX Gold Trust or iShares Silver Trust, the Aberdeen Standard Physical Silver Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Physical Palladium Trust, the Aberdeen Standard Physical Platinum Trust, the Sprott Physical Gold Trust, the Goldman Sachs Physical Gold ETF or the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         Rule 18.7(a)(1) provides that no Options Member shall make, for any account in which it has any interest or for the account of any Customer, an opening transaction on any exchange if the Options Member has reason to believe that as a result of such transaction the Options Member or its Customer would, acting alone or in concert with others, directly or indirectly, exceed the applicable position limit fixed by Cboe Exchange, Inc. (“Cboe Options”). Rule 18.9(a)(1) provides that no Options Member shall exercise, for any account in which it has an interest or for the account of any Customer, a long position in any options contract where such Options Member or Customer, acting alone or in concert with others, directly or indirectly, has or will have exceeded the applicable exercise limit fixed from time to time by Cboe Options for any options contract traded on BZX Options and Cboe Options. 
                        <E T="03">See also</E>
                         Cboe Options Rules 8.30 and 8.42.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rules 18.7 and 18.9, the position and exercise limits, respectively, for Trust options will be 25,000 same side option contracts.
                    <SU>27</SU>
                    <FTREF/>
                     The Exchange believes these proposed position and exercise limits are reasonable and appropriate. In considering the appropriate position and exercise limits for the Trust options, the Exchange reviewed the data presented by ISE in the ISE Approval. In the ISE Approval, ISE considered the Trust's market capitalization and average daily volume (“ADV”) against those of other underlying securities, as well as the proposed position and exercise limit in relation to other options. In measuring the Trust against other securities, ISE aggregated market capitalization and volume data for securities that have defined position limits utilizing data from The Options Clearing Corporations (“OCC”).
                    <SU>28</SU>
                    <FTREF/>
                     ISE also considered the trading volume for the Trust in terms of daily and notional volumes during the period of time the Trust has been trading from July 23, 2024 through December 14, 2024. The average daily volume for this time period is 5,302,533 shares and the average notional volume for this time period is $127,825,276.00. The Trust had 93,352 shareholders.
                    <SU>29</SU>
                    <FTREF/>
                     ISE indicated both the average daily volume and the average notional volume experienced an uptick at launch (which can be typical for anticipated product launches) then levelled off for several months. Renewed growth in the cryptocurrency market caused increased growth beginning in early November 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         Cboe Options is contemporaneously submitting a nearly identical rule filing pending with the Commission to amend Cboe Options Rule 8.30, Interpretation and Policy .10 to establish a position and exercise limit for Trust options of 25,000 (“Cboe Trust Proposal”). If the Commission approves the Cboe Trust Proposal, the position and exercise limits in that filing would then apply to the Exchange.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         ISE represented these computations were based on OCC data from October 22, 2024, and that data displaying zero values in market capitalization or ADV were removed.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         ISE represented it obtained this number from Broadridge Financial Solutions, Inc. on December 19, 2024.
                    </P>
                </FTNT>
                <P>
                    ISE reviewed the market capitalization and ADV of 3,930 options on single stock securities excluding ETFs.
                    <SU>30</SU>
                    <FTREF/>
                     Next, ISE aggregated this data based on market capitalization and ADV and grouped option symbols by position limit utilizing statistical thresholds for ADV and market capitalization for each position limit category (
                    <E T="03">i.e.,</E>
                     25,000, 50,000 to 65,000, 75,000, 100,000 to less than 250,000, 250,000 to less than 500,000, 500,000 to 1,000,000 and greater than 1,000,000). Cboe Options Rule 8.30 sets out position limits for various contracts. For example, like ISE, a 25,000 contract limit applies to those options having an underlying security that does not meet the requirements for a higher options contract limit. ISE indicated it performed this exercise to demonstrate the Trust's position limit relative to other options symbols in terms of market capitalization and ADV. For reference the market capitalization for the Trust was 1.16 billion 
                    <SU>31</SU>
                    <FTREF/>
                     with an ADV, for the preceding three months prior to October 22, 2024, of greater than 2.99 million shares. By comparison, other options symbols with similar market capitalization and ADV have a position limit of 50,000 contracts or 75,000 contracts.
                    <SU>32</SU>
                    <FTREF/>
                     From a 90-day ADV perspective, ISE reviewed statistics that indicated that the Trust had a 90-day ADV greater than each of the stocks in the 100,000 contracts to 249,000 contracts range. Therefore, the proposed 25,000 same side position and exercise limits for options on the Trust are conservative.
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         The Trust has one asset and therefore is not comparable to a broad based ETF where there are typically multiple components.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         ISE acquired this figure as of October 22, 2024. See 
                        <E T="03">https://www.ishares.com/us/products/337614/ishares-ethereum-trust-etf.</E>
                         The global supply of ether grows each day ether are minted.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         ISE determined the median market capitalization for 50,000 contracts was 788,000,000 million and the median market capitalization for 75,000 contracts was 1,037,000 billion. Further, placing the Trust at 50,000 contracts would rank it in the 59th percentile in market capitalization and placing the Trust at 75,000 contracts would rank it in the 46th percentile in market capitalization.
                    </P>
                </FTNT>
                <P>
                    Second, ISE reviewed the Trust's data relative to the market capitalization of the entire ether market in terms of exercise risk and availability of deliverables. Utilizing data as of October 22, 2024, there were 120,392,960 Ethereum in circulation. The price of Ethereum on October 22, 2024, was $2,620 per coin which equates to a market capitalization of greater than $315 billion US dollars. If a position limit of 25,000 options were considered (the position limit that would be typically assigned based upon data), the exercisable risk would represent less than 4.3524% of the outstanding shares of the Trust.
                    <SU>33</SU>
                    <FTREF/>
                     Since the Trust has a creation and redemption process managed through the issuer, we can additionally compare the position limit sought to the total market capitalization of the entire Ethereum market. In this case, the exercisable risk represented by 25,000 options on the Trust would be less than 0.03% of the market 
                    <PRTPAGE P="16352"/>
                    capitalization of all outstanding ether. Assuming a scenario where all 25,000 options on ether shares were exercised given the proposed 25,000 per same side position limit, this would have a virtually unnoticed impact on the entire ether market. This analysis demonstrates that the proposed 25,000 per same side position limit (and exercise limit) is conservative and appropriate for options on the Trust.
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         The 4.4% was calculated as follows: 2,500,000 (exercisable stock from position limit)/57,440,000 (shares outstanding on October 22, 2024) = 4.35237%.
                    </P>
                </FTNT>
                <P>
                    Third, ISE reviewed the proposed position limit by comparing it to position limits for derivative products regulated by the Commodity Futures Trading Commission (“CFTC”). While the CFTC, through the relevant Designated Contract Markets, only regulates options positions based upon delta equivalents (creating a less stringent standard), we examined equivalent ether futures position limits. In particular, ISE looked at the CME Ethereum futures contract 
                    <SU>34</SU>
                    <FTREF/>
                     that has a position limit of 8,000 futures.
                    <SU>35</SU>
                    <FTREF/>
                     On October 22, 2024, CME ether futures settled at $2,629. Using a contract multiplier of $50, a position limit of 8,000 futures would have a notional value $1.0516 billion (8,000 × $50 × $2,629). Using an October 22, 2024, share price of $19.91 for shares of the Trust, a futures position of 8,000 contracts, with a notional value of $1.0516 billion dollars would equate to an options position of 528,176 contracts ($1.0516 billion (notional value of 8,000 Ethereum futures contracts)/$19.91 (price of the Trust shares) = 52,817,679 (Trust shares)/100 (the number of shares represented by one options contract)) = 528,176 options contracts. Because substantial sums of any distributed options portfolio are likely to be out of the money on expiration, an options position limit equivalent to the CME position limit for Ethereum (considering that all options deltas are ≤1.00) should be a bit higher than the CME implied 528,176 contract limit.
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         CME Ether Futures are described in Chapter 350 of CME's Rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook, Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <P>
                    The Exchange notes, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>36</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>37</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. Considering CME's position limits on futures for Ethereum, the Exchange believes that that the proposed same side position limits are more than appropriate for the Trust options.
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>In analyzing the proposed position limit for options on the Trust, ISE also considered the supply of ether. Specifically, ISE examined the number of market participants with a position limit of 25,000 contracts that would need to exercise in unison to put the underlying asset under stress. In the case of options on ether, the proposed 25,000 same side position and exercise limit effectively restricts a market participant from holding positions that could be exercised in excess of 2,500,000 shares of the Trust. Utilizing data from October 22, 2024, the Trust had 57,440,000 shares outstanding, therefore 22.976 participants would have to simultaneously exercise their position limits in order to create a scenario that may put the underlying asset (shares of the Trust) under stress. The Exchange notes that historically, from observation only, it appears that no more than five market participants holding options positions in any single security have exercised in unison in any option. As unlikely an occurrence as all market participants exercising their positions in unison would be, if it were to occur, it should be noted that even such an occurrence would not likely put the Trust under stress as economic incentives, would induce the creation of more shares through the ETF creation and redemption process.</P>
                <P>
                    Further, given that the current global supply of Ethereum, the underlying asset of the Trust, is 120,392,960 
                    <SU>38</SU>
                    <FTREF/>
                     coins and each Ethereum coin can currently be exchanged (Ethereum to USD and then USD to Trust shares) for 131.6 shares of the Trust another 15,843,979,598 shares of the Trust could be created by the underlying ETF. In addition, as of October 22, 2024, a 25,000 contract position limit for options on the Trust would represent less than 4.3524% of the outstanding shares of the Trust (2,500,000 (position limit exercise)/57,440,000 (shares outstanding of the Trust on October 22, 2024)) = 4.3524%.
                    <SU>39</SU>
                    <FTREF/>
                     Also, as of October 22, 2024, a 25,000 contract position limit for options on the Trust would represent less than .01578% of the global supply of ether (2,500,000 (position limit exercise)/120,392,960 (number of ether) × 131.6 (Trust shares per ether)) = .01578%.
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         This figure was acquired as of October 22, 2024. 
                        <E T="03">See https://www.ishares.com/us/products/337614/ishares-ethereum-trust-etf.</E>
                         The global supply of ether grows each day ether are minted.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See https://coinmarketcap.com/currencies/ethereum/.</E>
                    </P>
                </FTNT>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to options on the Trust that it applies to the Exchange's other options products, including options on Fund Shares.
                    <SU>40</SU>
                    <FTREF/>
                     The Exchange's market surveillance staff would have access to the surveillances conducted by Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe EDGX Exchange, Inc.
                    <SU>41</SU>
                    <FTREF/>
                     with respect to the Trust and would review activity in the underlying Trust when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining information from its affiliated markets, the Exchange would be able to obtain information regarding trading in shares of the Trust from their primary listing markets and from other markets that trade shares of the Trust through ISG. In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”) for certain market surveillance, investigation and examinations functions. Pursuant to a multi-party 17d-2 joint plan, all options exchanges 
                    <PRTPAGE P="16353"/>
                    allocate amongst themselves and FINRA responsibilities to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>42</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         The surveillance program includes surveillance patterns for price and volume movements as well as patterns for potential manipulation (
                        <E T="03">e.g.,</E>
                         spoofing and marking the close).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe EDGX Exchange, Inc. are affiliated markets of the Exchange.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         Section 19(g)(1) of the Act, among other things, requires every self-regulatory organization (“SRO”) registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs,
                    <SU>43</SU>
                    <FTREF/>
                     “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the [CME] via their common membership in ISG. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME Ether futures market.” 
                    <SU>44</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>45</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Trust,
                    <SU>46</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust.
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; and SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ethereum ETP Approval Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, at 46938 (footnotes excluded).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, at 46941 (footnote excluded).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on the Trust will be available via Options Price Reporting Authority (“OPRA”) and major market data vendors. 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 the Trust up to the number of expirations currently permissible under the Rules.</P>
                <P>
                    The Exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of Ethereum and hedging vehicle to meet their investment needs in connection with Ethereum -related products and positions. The Exchange expects investors will transact in options on the Trust in the unregulated over-the-counter (“OTC”) options market,
                    <SU>47</SU>
                    <FTREF/>
                     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 positions; (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 Trust 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 Fund Shares that hold financial instruments, money market instruments, precious metal commodities, or Bitcoin on which the Exchange may already list and trade options are trusts structured in substantially the same manner as the Trust 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 Fund Share options, including Fund Shares that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals and Bitcoin) that it currently lists and trades on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         The Exchange understands from customers that investors have historically transacted in options on Fund Shares in the OTC options market if such options were not available for trading in a listed environment.
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that applicable Exchange rules will require that customers receive appropriate disclosure before trading options in the Trust.
                    <SU>48</SU>
                    <FTREF/>
                     Further, brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>49</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         Rules 26.2(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">See</E>
                         Rule 26.4.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>50</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>51</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>52</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    In particular, the Exchange believes that the proposal to list and trade options on the Trust 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 the Trust will provide investors with a greater opportunity to realize the benefits of utilizing options on an ETF based on spot Ethereum, including cost efficiencies and increased hedging strategies. The Exchange believes that offering options on a competitively priced ETF based on spot Ethereum will 
                    <PRTPAGE P="16354"/>
                    benefit investors by providing them with an additional, relatively lower-cost risk management tool, allowing them to manage, more easily, their positions and associated risks in their portfolios in connection with exposure to spot Ethereum. Additionally, the Exchange's offering of Trust 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. Today, the Exchange lists options on other commodity (including Ethereum) ETFs structured as a trust, which essentially offer the same objectives and benefits to investors, and for which the Exchange has not identified any issues with the continued listing and trading of options on those ETFs.
                </P>
                <P>
                    The Exchange also believes the proposal to permit options on the Trust will remove impediments to and perfect the mechanism of a free and open market and a national market system, because options on the Trust will comply with current Exchange Rules. Options on the Trust must satisfy the initial listing standards and continued listing standards currently in the Rules, applicable to options on all ETFs, including options on other commodity ETFs already deemed appropriate for options trading on the Exchange pursuant to Rule 19.3(i). Position and exercise limits for options on ETFs, including options on the Trust, are determined pursuant to Rules 18.7 and 18.9.
                    <SU>53</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         Rule 18.7(a)(1) provides that no Options Member shall make, for any account in which it has any interest or for the account of any Customer, an opening transaction on any exchange if the Options Member has reason to believe that as a result of such transaction the Options Member or its Customer would, acting alone or in concert with others, directly or indirectly, exceed the applicable position limit fixed by Cboe Options. Rule 18.9(a)(1) provides that no Options Member shall exercise, for any account in which it has an interest or for the account of any Customer, a long position in any options contract where such Options Member or Customer, acting alone or in concert with others, directly or indirectly, has or will have exceeded the applicable exercise limit fixed from time to time by Cboe Options for any options contract traded on BZX Options and Cboe Options. 
                        <E T="03">See also</E>
                         Cboe Options Rules 8.30 and 8.42.
                    </P>
                </FTNT>
                <P>Additionally, as demonstrated above, the Trust is characterized by a substantial number of shares that are widely held and actively traded. Further, Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (as proposed herein), and margin requirements, will govern the listing and trading of options on the Trust.</P>
                <P>The Exchange believes the proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits for options on each of the Trust are 25,000 contracts. These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given the Trust's market capitalization, ADV, and high number of outstanding shares. The proposed position limit, and exercise limit, is consistent with the Act as it addresses concerns related to manipulation and protection of investors because, as demonstrated above, the position limit (and exercise limit) is extremely conservative and more than appropriate given the Trust is actively traded. In support of the proposed position and exercise limits for options on the Trust are 25,000 contracts, the Exchange is citing the in depth analysis ISE did in the ISE Approval. As noted above, in ISE Approval, ISE considered the: (1) Trust's market capitalization and ADV, and proposed position limit in relation to other securities; (2) market capitalization of the entire Ethereum market in terms of exercise risk and availability of deliverables; (3) proposed position limit by comparing it to position limits for derivative products regulated by the CFTC; and (4) supply of Ethereum. Based on the Exchange's review of these analyses, the Exchange believes that setting position and exercise limits for options on the Trust at 25,000 contracts is more than appropriate. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying as well as the Ethereum market.</P>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Trust options. As discussed above, 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 Fund Share options, including Trust options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on the Trust. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on the Trust in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Trust and, as appropriate, would review activity in the underlying Fund when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition, the Exchange has a Regulatory Services Agreement with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust.</P>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>54</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the 
                    <PRTPAGE P="16355"/>
                    Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>55</SU>
                    <FTREF/>
                     In light of the foregoing, the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ethereum ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46941.
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that this proposal 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 applicable Exchange rules will require that customers receive appropriate disclosure before trading options in the Trust 
                    <SU>56</SU>
                    <FTREF/>
                     and will require that brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>57</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         
                        <E T="03">See</E>
                         Rules 26.2(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         
                        <E T="03">See</E>
                         Rule 26.4.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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 Trust options will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. The Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of the Trust options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange. Also, and as stated above, the Exchange already lists options on other commodity-based Fund Shares (including Bitcoin-based).
                    <SU>58</SU>
                    <FTREF/>
                     Further, the Trust would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other Fund Share for the Exchange to continue listing options on them.
                </P>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposal to list and trade options on the Trust 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 the Trust 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. The Exchange notes that listing and trading Trust 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.</P>
                <P>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 Trust 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 
                    <SU>59</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>60</SU>
                    <FTREF/>
                     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 
                    <SU>61</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>62</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has waived the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>63</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>64</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing of options on the iShares Ethereum Trust.
                    <SU>65</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying iShares Ethereum Trust, including, among other things, information regarding trading volume, the number of shareholders, and the market capitalization of the iShares Ethereum Trust. The proposal also establishes position and exercise limits for options on the iShares Ethereum Trust and provides information regarding the surveillance procedures that will apply to iShares Ethereum Trust options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading iShares Ethereum Trust options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>66</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         
                        <E T="03">See</E>
                         ISE Approval, 
                        <E T="03">supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>66</SU>
                         For purposes only of waiving the 30-day operative delay, the Commission has also 
                        <PRTPAGE/>
                        considered the proposed rule's impact on efficiency, competition, and capital formation. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <PRTPAGE P="16356"/>
                <P>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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeBZX-2025-054 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeBZX-2025-054. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-CboeBZX-2025-054 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>67</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06507 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102842; File No. SR-CboeEDGA-2025-009]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe EDGA Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Fee Schedule by Introducing an NBBO Setter Program Under Proposed New Fee Code SS and Introducing a Definitions Section to the Fee Schedule</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”) 
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 9, 2025, Cboe EDGA Exchange, Inc. (the “Exchange” or “EDGA”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I, II, and III 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.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe EDGA Exchange, Inc. (the “Exchange” or “EDGA”) proposes to amend its Fee Schedule by introducing an NBBO Setter Program under proposed new fee code SS and introducing a Definitions section to the Fee Schedule. The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/equities/regulation/rule_filings/edga/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and the Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend its Fee Schedule applicable to its equities trading platform (“EDGA Equities”) by introducing an NBBO Setter Program under proposed new fee code SS and introducing a Definitions section to the Fee Schedule. The Exchange proposes to implement these changes effective April 1, 2025.
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange originally proposed to amend its Fee Schedule on April 1, 2025 (SR-CboeEDGA-2025-008). On April 9, 2025, the Exchange withdrew that filing and submitted this proposal.
                    </P>
                </FTNT>
                <P>
                    The Exchange first notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues if they deem fee levels at a particular venue to be excessive or incentives to be insufficient. More specifically, the Exchange is only one of 16 registered equities exchanges, as well as a number of alternative trading systems and other off-exchange venues that do not have similar self-regulatory responsibilities under the Securities Exchange Act of 1934 (the “Act”), to which market participants may direct their order flow. Based on publicly available information,
                    <SU>4</SU>
                    <FTREF/>
                     no single registered equities exchange has more than 15% of the market share. Thus, in such a low-concentrated and highly competitive market, no single equities exchange possesses significant pricing power in the execution of order flow. The Exchange in particular operates a 
                    <PRTPAGE P="16357"/>
                    “Maker-Taker” model whereby it pays rebates to members that add liquidity and assesses fees to those that remove liquidity. The Exchange's Fee Schedule sets forth the standard rebates and rates applied per share for orders that provide and remove liquidity, respectively. Currently, for orders in securities priced at or above $1.00, the Exchange provides a standard rebate of $0.00270 per share for orders that add liquidity and assesses a fee of $0.0030 per share for orders that remove liquidity.
                    <SU>5</SU>
                    <FTREF/>
                     For orders in securities priced below $1.00, the Exchange provides a standard rebate of 0.15% of the dollar value and assesses a fee of 0.15% of the dollar value.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         
                        <E T="03">See</E>
                         Cboe Global Markets, U.S. Equities Market Volume Summary, Month-to-Date (March 20, 2025), available at 
                        <E T="03">https://www.cboe.com/us/equities/_statistics/.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         EDGA Equities Fee Schedule, Standard Rates.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Fee Codes and Associated Rates</HD>
                <P>
                    The Exchange offers various fee codes applicable to orders that add or remove liquidity on EDGA. The Exchange now proposes to introduce a new incentive program, referred to by the Exchange as the NBBO Setter Program (the “Program”) under new proposed fee code SS, which is designed to improve market quality in illiquid securities on the Exchange. As proposed, the Program would provide a rebate of $0.00300 in securities priced at or above $1.00 and a rebate of 0.15000% of the dollar value in securities priced below $1.00 for orders that set the Setter NBBO 
                    <SU>7</SU>
                    <FTREF/>
                     in securities 
                    <E T="03">not included</E>
                     in the NBBO Setter Excluded Securities List (“NBBO Setter Securities”). As proposed, the NBBO Setter Excluded Securities List means a list of securities 
                    <E T="03">not eligible</E>
                     for the rebate provided under proposed fee code SS. The securities included in the NBBO Setter Excluded Securities List will be determined by the Exchange on a quarterly basis and published in a Notice distributed to Members and on the Exchange's website. At the outset, the NBBO Setter Excluded Securities List will include those securities included in the S&amp;P 500 Index, the Nasdaq 100 Index, and certain ETPs that the Exchange believes have high levels of liquidity. The initial NBBO Setter Excluded Securities List will be comprised of approximately 550 securities, leaving approximately 9,700 NBBO Setter Securities in which Members may earn a rebate under proposed fee code SS. The Exchange also proposes to introduce a Definitions section to the Fee Schedule in order to codify the terms “NBBO Setter Securities” and “Setter NBBO.” The Exchange believes that providing a Definitions section will provide Members additional clarity on the terms applicable to the proposed NBBO Setter Program available under proposed fee code SS.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         As proposed, “Setter NBBO” means a quotation of at least 100 shares that is better than the NBBO or a quotation of a notional size of at least $10,000.00 that is better than the NBBO. A quotation of at least 100 shares or a quotation of at least $10,000.00 that merely joins the NBBO (
                        <E T="03">i.e.,</E>
                         is “at the NBBO”) will not qualify as a Setter NBBO.
                    </P>
                </FTNT>
                <P>The Exchange notes that there are no volume requirements for the proposed NBBO Setter Program and the Program will be available to all Members and will provide Members an opportunity to earn a higher rebate than what is currently provided under the Exchange's standard rebate. Moreover, the Program is designed to encourage Members that provide displayed liquidity on the Exchange to increase overall volume and order flow in illiquid names, which would benefit all Members by providing greater execution opportunities on the Exchange and contribute to a deeper, more liquid market, benefiting all investors.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>8</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>9</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>10</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers as well as Section 6(b)(4) 
                    <SU>11</SU>
                    <FTREF/>
                     as it is designed to provide for the equitable allocation of reasonable dues, fees and other charges among its Members and other persons using its facilities.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         15 U.S.C. 78f(b)(4)
                    </P>
                </FTNT>
                <P>In particular, the Exchange believes that the proposed fee code SS and corresponding NBBO Setter Program is reasonable, equitable, and not unfairly discriminatory. The proposed fee code and Program reflects a competitive pricing structure designed to incentivize participants to direct their order flow to the Exchange and enhance market quality in NBBO Setter Securities. The Exchange believes the proposed Program, which provides a higher rebate to Members that set the Setter NBBO in NBBO Setter Securities, provides a reasonable means to encourage overall growth in order flow that establishes a Setter NBBO in the approximately 9,700 securities traded on EDGA that the Exchange believes are illiquid. An overall increase in activity would deepen the Exchange's liquidity pool, offer more narrow spreads, support the quality of price discovery, promote market transparency, and improve market quality for all investors.</P>
                <P>
                    The Exchange believes that limiting its Program to NBBO Setter Securities is reasonable, equitable, and not unfairly discriminatory because the Exchange has identified such securities as securities for which it would like to inject additional quoting competition, which it believes will generally act to narrow spreads, increase size at the inside, and increase liquidity depth in such securities. The Exchange also believes that the proposed definition of Setter NBBO is reasonable in that it provides Members alternative ways to qualify for the rebate under the Program and encourages Members to quote the NBBO in higher-priced securities in which Members might not otherwise quote at least 100 shares due to the higher notional value associated with securities priced over $100.00. For example, if a Member wanted to set the NBBO in hypothetical symbol XYZ, the Member would, under the Exchange's standard definition of NBBO,
                    <SU>12</SU>
                    <FTREF/>
                     have to provide a round lot quotation priced better than the hypothetical price of $967.99, which equates to a notional value of $96,799. Under the Exchange's proposed Setter NBBO definition, however, the Member could qualify for the rebate under proposed fee code SS by providing an odd lot quotation in hypothetical symbol XYZ with a notional value of at least $10,000.00 that “sets” (
                    <E T="03">i.e.,</E>
                     is better than) the NBBO. The Exchange believes that by allowing Members to qualify for the rebate under the Program by satisfying the definition of Setter NBBO with either a quotation of at least 100 shares better than the NBBO or an odd lot quotation better than the NBBO with a notional value of 
                    <PRTPAGE P="16358"/>
                    at least $10,000.00 will promote price discovery and market quality in NBBO Setter Securities and, further, that the tightened spreads and increased liquidity from the Program will benefit all investors by deepening the Exchange's liquidity pool, offering the potential for executions at more aggressive prices, supporting the quality of price discovery, enhancing quoting competition across exchanges, promoting market transparency, and improving investor protection.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 1.5(o) (“NBB, NBO, and NBBO”).
                    </P>
                </FTNT>
                <P>Additionally, the Exchange's introduction of a Definitions section to the Fee Schedule is reasonable, equitable, and not unfairly discriminatory because it serves to provide all Members additional clarity surrounding proposed fee code SS. Particularly, the proposed Definitions section will contain the relevant terms that will enable Members to potentially earn the proposed higher rebate under proposed fee code SS. The Definitions section will be available on the Fee Schedule to all Members, equally.</P>
                <P>
                    The Exchange notes that the proposed NBBO Setter Program is not dissimilar from other programs incentivizing quoting at the NBBO offered by other exchanges.
                    <SU>13</SU>
                    <FTREF/>
                     The Exchange's proposed Program differs from the MEMX NBBO Program and MIAX NBBO Program in that the Exchange's proposed Program is not a volume-based tier, but rather an incentive earned simply by setting the Setter NBBO in NBBO Setter Securities. Additionally, the Exchange's proposed NBBO Setter Program will pay a rebate of 0.15000% of the dollar value in securities priced below $1.00, while the MEMX NBBO Program and MIAX NBBO Program are both limited to securities priced at or above $1.00. The Exchange's proposed NBBO Setter Program also includes an alternative method for “setting” the NBBO through its Setter NBBO definition, which is not offered under the MEMX NBBO Program or the MIAX NBBO Program. Under the Setter NBBO, a Member may “set” the NBBO by providing an odd lot quotation with a notional value of at least $10,000.00, which the Exchange believes will assist Members in “setting” the NBBO in securities with prices greater than $100.00. Further, the Exchange's proposed Program is equitable and not unfairly discriminatory because it is open to all Members on an equal basis and provides a higher rebate reasonably related to the value of the Exchange's market quality. In fact, the Exchange believes its program is less discriminatory than those offered by other exchanges in that there is no minimum volume requirement in order to qualify for the higher rebate offered under proposed fee code SS, whereas both the MEMX NBBO Program and MIAX NBBO Program each require a minimum amount of volume in addition to setting the NBBO in order to earn an additive rebate. Much like volume-based tiers are generally designed to incentivize higher levels of liquidity provision and/or growth patterns on exchanges, the proposed NBBO Setter Program is designed to incentivize enhanced market quality on the Exchange through tighter spreads, greater size at the inside, and greater quoting depth in NBBO Setter Securities by offering a higher rebate under fee code SS. As such, the Exchange believes the proposed higher rebate will act to enhance liquidity and competition across exchanges in NBBO Setter Securities by providing a rebate reasonably related to such enhanced market quality to the benefit of all investors, thereby promoting the principles discussed in Section 6(b)(5) of the Act.
                    <SU>14</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See, e.g.,</E>
                         MEMX Equities Fee Schedule, NBBO Setter Tier (“MEMX NBBO Program”). 
                        <E T="03">See also,</E>
                         MIAX Pearl Equities Fee Schedule, NBBO Setter Plus Program (“MIAX NBBO Program”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">Supra</E>
                         note 8.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>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. Rather, as discussed above, the Exchange believes that the proposed changes would encourage the submission of additional order flow to a public exchange, thereby promoting market depth, execution incentives and enhanced execution opportunities, as well as price discovery and transparency for all Members. As a result, the Exchange believes that the proposed changes further the Commission's goal in adopting Regulation NMS of fostering competition among orders, which promotes “more efficient pricing of individual stocks for all types of orders, large and small.”</P>
                <P>The Exchange believes the proposed rule change does not impose any burden on intramarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. Particularly, the proposed introduction of an NBBO Setter Program does not impose an unnecessary burden as all Members will be eligible to earn the rebate offered under proposed fee code SS should they set the Setter NBBO in NBBO Setter Securities. Additionally, the proposed introduction of a Definitions section does not impose an unnecessary burden upon Members as all Members will be able to view the relevant definitions applicable to the Program. The Exchange does not believe the proposed change burdens competition, but rather, enhances competition as it is intended to increase the competitiveness of EDGA by amending existing pricing incentives in order to attract order flow and incentivize participants to increase their participation on the Exchange. Greater overall order flow, trading opportunities, and pricing transparency benefits all market participants on the Exchange by enhancing market quality and continuing to encourage Members to send orders, thereby contributing towards a robust and well-balanced market ecosystem.</P>
                <P>
                    Next, the Exchange believes the proposed rule change does not impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act. As previously discussed, the Exchange operates in a highly competitive market. Members have numerous alternative venues that they may participate on and direct their order flow, including other equities exchanges, off-exchange venues, and alternative trading systems. Additionally, the Exchange represents a small percentage of the overall market. Based on publicly available information, no single equities exchange has more than 15% of the market share.
                    <SU>15</SU>
                    <FTREF/>
                     Therefore, no exchange possesses significant pricing power in the execution of order flow. Indeed, participants can readily choose to send their orders to other exchange and off-exchange venues if they deem fee levels at those other venues to be more favorable. Moreover, the Commission has repeatedly expressed its preference for competition over regulatory intervention in determining prices, products, and services in the securities markets. Specifically, in Regulation NMS, the Commission highlighted the importance of market forces in determining prices and SRO revenues and, also, recognized that current regulation of the market system “has been remarkably successful in promoting market competition in its broader forms that are most important to investors and listed companies.” 
                    <SU>16</SU>
                    <FTREF/>
                     The fact that this market is competitive has also long been recognized by the courts. In 
                    <E T="03">NetCoalition</E>
                     v. 
                    <E T="03">Securities</E>
                     and Exchange Commission, the D.C. Circuit 
                    <PRTPAGE P="16359"/>
                    stated as follows: “[n]o one disputes that competition for order flow is ‘fierce.' . . . As the SEC explained, '[i]n the U.S. national market system, buyers and sellers of securities, and the broker-dealers that act as their order-routing agents, have a wide range of choices of where to route orders for execution'; [and] ‘no exchange can afford to take its market share percentages for granted' because ‘no exchange possesses a monopoly, regulatory or otherwise, in the execution of order flow from broker dealers'. . . .”.
                    <SU>17</SU>
                    <FTREF/>
                     Accordingly, the Exchange does not believe its proposed fee change imposes any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">Supra</E>
                         note 4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 51808 (June 9, 2005), 70 FR 37496, 37499 (June 29, 2005).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">NetCoalition</E>
                         v. 
                        <E T="03">SEC</E>
                        , 615 F.3d 525, 539 (D.C. Cir. 2010) (quoting Securities Exchange Act Release No. 59039 (December 2, 2008), 73 FR 74770, 74782-83 (December 9, 2008) (SR-NYSEArca-2006-21)).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The foregoing rule change has become effective pursuant to Section 19(b)(3)(A) of the Act 
                    <SU>18</SU>
                    <FTREF/>
                     and paragraph (f) of Rule 19b-4 
                    <SU>19</SU>
                    <FTREF/>
                     thereunder. 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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved.
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         15 U.S.C. 78s(b)(3)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         17 CFR 240.19b-4(f).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeEDGA-2025-009 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeEDGA-2025-009. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-CboeEDGA-2025-009 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>20</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>20</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06520 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102819; File No. SR-PEARL-2025-15]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, To List and Trade Options on the Fidelity Ethereum Fund</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 9, 2025, MIAX PEARL, LLC (“MIAX Pearl” or the “Exchange”) filed with the Securities and Exchange Commission (“Commission”) a proposed rule change as described in Items I and II below, which Items have been prepared by MIAX Pearl. The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities, to list and trade options on the Fidelity Ethereum Fund (the “Fidelity Fund”).</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://www.miaxglobal.com/markets/us-equities/pearl-equities/rule-filings,</E>
                     at MIAX Pearl's principal office, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>
                    In its filing with the Commission, MIAX Pearl 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. MIAX Pearl has prepared summaries, set forth in sections A, B, and C below, of the most significant aspects of such statements.
                    <PRTPAGE P="16360"/>
                </P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities,
                    <SU>3</SU>
                    <FTREF/>
                     to allow the Exchange to list and trade options on the Fidelity Fund, designating the Fidelity Fund as appropriate for options trading on the Exchange.
                    <SU>4</SU>
                    <FTREF/>
                     This is a competitive filing based on similar proposals submitted by Cboe Exchange, Inc. (“Cboe”),which was approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange notes that its affiliate options exchanges, Miami International Securities Exchange, LLC (“MIAX”) and MIAX Sapphire, LLC (“MIAX Sapphire”), submitted (or will submit) substantively similar proposals. The Exchange notes that all the rules of Chapter III of MIAX, including MIAX Rules 307 and 309, are incorporated by reference into the MIAX Pearl and MIAX Sapphire rulebooks. The Exchange also notes that all of the rules of Chapter III of MIAX, including MIAX Rules 307 and 309, and the rules of Chapter IV of the MIAX, including MIAX Rule 402, are incorporated by reference into the MIAX Emerald, LLC (“MIAX Emerald”) rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         On May 23, 2024, the Securities and Exchange Commission (the “Commission”) approved proposals by NYSE Arca, Inc., The Nasdaq Stock Market LLC, and Cboe BZX Exchange, Inc. to list and trade the shares of 8 ether-based commodity-based trust shares and trust units. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, To List and Trade Shares of Ether-Based Exchange-Traded Products)(“Ether ETP Approval Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102797 (April 9, 2025) (Self-Regulatory Organizations; Cboe Exchange, Inc.; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on Shares of the Fidelity Ethereum Fund) (“Cboe Ether Approval Order”).
                    </P>
                </FTNT>
                <P>
                    Current Exchange Rule 402(i)(4) provides that securities deemed appropriate for options trading include shares or other securities (“Exchange Traded Fund Shares” or “ETFs”) that represent certain types of interests,
                    <FTREF/>
                    <SU>6</SU>
                     including interests in certain specific trusts that hold financial instruments, money market instruments, or precious metals (which are deemed commodities).
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i), which permits options trading on exchange-traded funds (“ETFs”) that: (1) 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 (“Funds”), 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); (2) represent interests in a trust or similar entity that holds a specified non-U.S. currency or currencies deposited with the trust which when aggregated in some specified minimum number may be surrendered to the trust or similar entity 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”); (3) 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”); (4) are issued by the SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Silver ETF Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Palladium ETF Trust, the Aberdeen Standard Platinum ETF Trust, the Goldman Sachs Physical Gold ETF, the Sprott Physical Gold Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, or the ARK 21 Shares Bitcoin ETF; or (5) represent an interest in a registered investment company (“Investment Company”) organized as an open-end management company or similar entity, that invests in a portfolio of securities selected by the Investment Company's investment adviser consistent with the Investment Company's investment objectives and policies, which is issued in a specified aggregate minimum number in return for a deposit of a specified portfolio of securities and/or a cash amount with a value equal to the next determined net asset value (“NAV”), and when aggregated in the same specified minimum number, may be redeemed at a holder's request, which holder will be paid a specified portfolio of securities and/or cash with a value equal to the next determined NAV (“Managed Fund Share”); provided that all of the conditions listed in (5)(i) and 5(ii) are met.
                    </P>
                </FTNT>
                <P>
                    The Fidelity Fund is an Ethereum-backed commodity ETFs [sic] structured as trusts [sic]. Similar to any ETFs currently deemed appropriate for options trading under Exchange Rule 402(i), the investment objective of the Fidelity Fund is for its shares to reflect the performance of Ethereum (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to Ethereum without the complexities of Ethereum delivery. As is the case for ETFs currently deemed appropriate for options trading, the Fidelity Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of Ethereum and are designed to track Ethereum or the performance of the price of Ethereum and offer access to the Ethereum market.
                    <SU>7</SU>
                    <FTREF/>
                     The Fidelity Fund provides investors with cost-efficient alternatives that allow a level of participation in the Ethereum market through the securities market. The primary substantive difference between the Fidelity Fund and ETFs currently deemed appropriate for options trading are that ETFs may hold securities, certain financial instruments, and specified precious metals (which are deemed commodities), and Bitcoin (which is also deemed a commodity), while the Fidelity Fund holds Ethereum (which is also deemed a commodity).
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that the Fidelity Fund satisfies the Exchange's initial listing standards for ETFs on which the Exchange may list options. Specifically, the Fidelity Fund satisfies the initial listing standards set forth in Exchange Rule 402(i)(5)(i), as is the case for other ETFs on which the Exchange lists options (including trusts that hold commodities). Exchange Rule 402(i)(5)(i) requires that the ETFs must either (1) meet the criteria and standards set forth in Exchange Rule 402(a) or 402(b),
                    <SU>8</SU>
                    <FTREF/>
                     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 Fidelity Fund satisfies Exchange Rule 402(i)(5)(i)(B), as it is subject to this creation and redemption process.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Subparagraphs (a) and (b) of Exchange Rule 402 provide for guidelines to be used by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <P>
                    While not required by the Rules for purposes of options listings, the Exchange believes that the Fidelity Fund satisfies the criteria and guidelines set forth in Exchange Rule 402. Pursuant to Exchange Rule 402(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.
                    <SU>9</SU>
                    <FTREF/>
                     The Fidelity Fund 
                    <PRTPAGE P="16361"/>
                    is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>10</SU>
                    <FTREF/>
                     The Exchange believes that the Fidelity Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Exchange Rule 403(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>
                    Based on the data presented in the Cboe filing,
                    <SU>11</SU>
                    <FTREF/>
                     as of December 23, 2024, the Fidelity Fund had 41,700,000 shares outstanding, which is nearly six times more than the minimum number of shares of a corporate stock (
                    <E T="03">i.e.,</E>
                     7,000,000 shares) that the Exchange generally requires to list options on that stock pursuant to Exchange Rule 402(b)(1). The Exchange believes this demonstrates that the Fidelity Fund is characterized by a substantial number of outstanding shares.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    Further, based on the data presented in the Cboe filing,
                    <SU>12</SU>
                    <FTREF/>
                     as of November 26, 2024, there were 38,170 beneficial holders of shares of the Fidelity Fund, which is significantly more than 2,000 beneficial holders (approximately 19 times more), which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to Exchange Rule 402(b)(2). Therefore, the Exchange believes the shares of the Fidelity Fund are widely held.
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes that the shares of the Fidelity Fund are actively traded. Based on the data presented in the Cboe filing,
                    <SU>13</SU>
                    <FTREF/>
                     as of December 23, 2024, the total trading volume (by shares) and the approximate average daily volume (“ADV”) (in shares and notional) from July 23, 2024 (the date on which shares of the Fidelity Fund began trading) to December 23, 2024 for the Fidelity Fund was as follows:
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s30,20C,20C">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Trading volume
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(notional $)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">115,589,047</ENT>
                        <ENT>1,070,269</ENT>
                        <ENT>33,864,193</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As demonstrated above based on the data presented in the Cboe filing,
                    <SU>14</SU>
                    <FTREF/>
                     despite the fact that the Fidelity Fund has been trading for approximately five months as of December 23, 2024, its total trading volume as of that date was substantially higher than 2,400,000 shares (more than 48 times that amount), which is the minimum 12-month volume the Exchange generally requires for a corporate stock in order to list options on that security as set forth in Rule 402(b)(4). Additionally, as of December 23, 2024, the trading volume for the Fidelity Fund was in the top 5% of all ETFs that are currently trading. The Exchange believes this data demonstrates the Fidelity Fund is characterized as having shares that are actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>Options on the Fidelity Fund will also be subject to the Exchange's continued listing standards set forth in Exchange Rule 403(g), for ETFs deemed appropriate for options trading pursuant to Exchange Rule 402(i). Specifically, Exchange Rule 403(g) provides that ETFs that were initially approved for options trading pursuant to Exchange Rule 402(i) shall be deemed not to meet the requirements for continued approval, and the Exchange shall not open for trading any additional series of option contracts of the class covering such ETFs, if the ETFs are delisted from trading pursuant to Exchange Rule 403(b)(4) or the ETFs 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 402(i)(5)(i)(A), in accordance with the terms of paragraphs (b)(1), (2), and (3) of Exchange Rule 403; (2) in the case of options covering ETFs approved for trading under Exchange Rule 402(i)(5)(i)(B) (as is the case for the Fidelity Fund), 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 ETFs 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.</P>
                <P>
                    Options on the Fidelity Fund will be physically settled contracts with American-style exercise.
                    <SU>15</SU>
                    <FTREF/>
                     Consistent with current Exchange Rule 404, 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 the Fidelity Fund 
                    <SU>16</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on the Fidelity Fund for trading on a weekly,
                    <SU>17</SU>
                    <FTREF/>
                     monthly,
                    <SU>18</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>19</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) that expire 
                    <PRTPAGE P="16362"/>
                    from 12 to 39 months from the time they are listed.
                    <SU>20</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 401, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(b). The monthly expirations are subject to certain listing criteria for underlying securities described within Exchange Rule 404 and its Interpretations and Policies. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Exchange Rule 404(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 404(e), 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy.02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy.13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy.03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 406(a).
                    </P>
                </FTNT>
                <P>
                    Pursuant to Exchange Rule 404,, Interpretation and Policy .06,, which governs strike prices of series of options on ETFs, the interval between strike prices of series of options on ETFs approved for options trading pursuant to Exchange Rule 402(i) shall be fixed at a price per share which is reasonably close to the price per share at which the underlying security is traded in the primary market at or about the same time such series of options is first open for trading on the Exchange, or at such intervals as may have been established on another options exchange prior to the initiation of trading on the Exchange. With respect to the Short Term Options Series or Weekly Program, during the month prior to expiration of an option class that is selected for the Short Term Option Series Program, the strike price intervals for the related non-Short Term Option (“Related non-Short Term Option”) shall be the same as the strike price intervals for the Short Term Option.
                    <SU>21</SU>
                    <FTREF/>
                     Specifically, the Exchange may open for trading Short Term Option Series at strike price intervals of (i) $0.50 or greater where the strike price is less than $100, and $1 or greater where the strike price is between $100 and $150 for all option classes that participate in the Short Term Options Series Program; (ii) $0.50 for option classes that trade in one dollar increments and are in the Short Term Option Series Program; or (iii) $2.50 or greater where the strike price is above $150.
                    <SU>22</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>23</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>24</SU>
                    <FTREF/>
                     and the $2.50 Strike Price Program.
                    <SU>25</SU>
                    <FTREF/>
                     Pursuant to Exchange Rule 510, where the price of a series of options on the Fidelity Fund 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 
                    <SU>26</SU>
                    <FTREF/>
                     consistent with the minimum increments for options on other ETFs listed on the Exchange. Any and all new series of the Fidelity Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 404 and 510, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy.02(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(f).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 510.
                    </P>
                </FTNT>
                <P>Fidelity Fund 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 the Fidelity Fund options 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 402(i)(4).</P>
                <P>As mentioned above, the rules for position and exercise limits for options on ETFs, including the Fidelity Fund options, are determined pursuant to MIAX Rules 307 and 309, respectively, as incorporated by reference into the MIAX Pearl Rulebook. Position and exercise limits for ETF options vary according to the number of outstanding shares and the trading volumes of the underlying ETF over the past six months, where the largest in capitalization and the most frequently traded ETFs have an option position and exercise limit of 250,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market; and smaller capitalization ETFs have position and exercise limits of 200,000, 75,000, 50,000 or 25,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market. The Exchange further notes that MIAX Rule 1502, which governs margin requirements applicable to trading on the Exchange, including options on ETFs, will also apply to the trading of the Fidelity Fund options, as MIAX Chapter XV (Margins) is also incorporated by reference into the MIAX Pearl Rulebook. Notwithstanding the position limits in MIAX Rule 307(d) and exercise limits in MIAX Rule 309, the Exchange proposes the position and exercise limits for the Fidelity Fund to be 25,000 contracts on the same side pursuant to proposed Interpretation and Policy .01 to MIAX Rule 307 and proposed Interpretation and Policy .01 to MIAX Rule 309.</P>
                <P>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 the Fidelity Fund. Also the Exchange represents 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 the proposed Fidelity Fund options.</P>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to the Fidelity Fund options that it applies to the Exchange's other options products.
                    <SU>27</SU>
                    <FTREF/>
                     The Exchange's staff will have access to the surveillance programs conducted by its affiliate exchanges, MIAX and MIAX Sapphire, with respect to trading in the shares of the underlying Fidelity Fund when conducting surveillances for market abuse or manipulation in the options on the Fidelity Fund. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining surveillance data from MIAX and MIAX Sapphire, the Exchange will be able to obtain information regarding trading in the shares of the underlying Fidelity Fund from Cboe and other markets through ISG. In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”). Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities amongst themselves and to FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>28</SU>
                    <FTREF/>
                     The underlying shares of spot Ethereum exchange-
                    <PRTPAGE P="16363"/>
                    traded products (“ETPs”), including the Fidelity Fund, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs,
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         The surveillance program includes real-time patterns for price and volume movements and post-trade surveillance patterns (
                        <E T="03">e.g.,</E>
                         spoofing, marking the close, pinging, phishing).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the 
                        <PRTPAGE/>
                        SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <EXTRACT>
                    <FP>
                        [e]ach Exchange has a comprehensive surveillance sharing agreement with the [Chicago Mercantile Exchange (“CME”)] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.
                        <SU>29</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             
                            <E T="03">See</E>
                             Ethereum ETP Approval Order, 89 FR 46938.
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>30</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the Fidelity Fund,
                    <SU>31</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Fidelity Fund. Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Fidelity Fund.
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR 46939.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>
                    The Exchange has also analyzed its capacity and represents that it believes the Exchange and Options Price Reporting Authority (“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 the Fidelity Fund up to the number of expirations currently permissible under the Rules. Because the proposal is limited to one class, the Exchange believes any additional traffic that may be generated from the introduction of the Fidelity Fund options will be manageable. The Exchange believes that offering options on the Fidelity Fund will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of Ethereum and hedging vehicle to meet their investment needs in connection with Ethereum-related products and positions. The Exchange expects investors will transact in options on the Fidelity Fund in the unregulated over-the-counter (“OTC”) options market,
                    <SU>32</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed 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 the Fidelity Fund 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 the Fidelity Fund 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 options on ETFs, including ETFs that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals) that it currently lists and trades on the Exchange. The Exchange notes that quotation and last sale information for shares of the Fidelity Fund are available from the CTA high-speed lines. Quotation and last sale information for options on the Fidelity Fund will be available from OPRA and market data vendors.
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         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.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>33</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>34</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>35</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    In particular, the Exchange believes that the proposal to list and trade options on the Fidelity Fund 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 the Fidelity Fund will provide investors with an opportunity to realize the benefits of utilizing options on the Fidelity Fund, including cost efficiencies and increased hedging strategies. The Exchange believes that offering the Fidelity Fund 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 risks in their portfolios more easily in connection with exposure to the price of Ethereum and with Ethereum-related products and positions. Additionally, the Exchange's offering of the Fidelity Fund 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,
                    <SU>36</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as the Fidelity Fund and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     Ethereum rather than Bitcoin or 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.
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>
                    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 
                    <PRTPAGE P="16364"/>
                    it is consistent with current Exchange Rules, previously filed with the Commission. Options on the Fidelity Fund 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. Additionally, as demonstrated above, the Fidelity Fund is characterized by a substantial number of shares that are widely held and actively traded. Fidelity Fund 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 options on ETFs, including permissible expirations, strike prices and minimum increments, and applicable position and exercise limits (including as proposed in the filing submitted by Exchange's affiliate, MIAX), and margin requirements, will govern the listing and trading of options on the Fidelity Fund in the same manner.
                </P>
                <P>The Exchange believes the proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits for options for the Fidelity Fund is 25,000 contracts, which is currently the lowest limit applicable to any equity options (including ETF options) and the position and exercise limits that apply to comparable ETFs that hold Bitcoin. The Exchange believes the proposed position and exercise limits are extremely conservative for Fidelity Fund options given the trading volume and outstanding shares for the Fidelity Fund.</P>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Fidelity Fund options. 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 Fidelity Fund options.</P>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to options on the Fidelity Fund that it applies to the Exchange's other options products.
                    <SU>37</SU>
                    <FTREF/>
                     The Exchange's staff will have access to the surveillance programs conducted by its affiliate exchanges, MIAX and MIAX Sapphire, with respect to the underlying Fidelity Fund when conducting surveillances for market abuse or manipulation in the options on the Fidelity Fund. The Exchange will review activity in the underlying Fidelity Fund when conducting surveillances for market abuse or manipulation in the options on the Fidelity Fund. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining surveillance data from MIAX and MIAX Sapphire, the Exchange will be able to obtain information from Cboe and other markets through ISG. In addition, the Exchange has a Regulatory Services Agreement with FINRA. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities amongst themselves and to FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>38</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         The surveillance program includes real-time patterns for price and volume movements and post-trade surveillance patterns (
                        <E T="03">e.g.,</E>
                         spoofing, marking the close, pinging, phishing).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>The Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Fidelity Fund. Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Fidelity Fund.</P>
                <P>
                    Finally, the Commission has previously approved the listing and trading of options on other cryptocurrency backed commodity ETFs structured as trusts.
                    <SU>39</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 101701 (November 21, 2024), 89 FR 93672 (November 27, 2024) (SR-PEARL-2024-52) (Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange To Allow the Exchange To List and Trade Options on the iShares Bitcoin Trust); 101719 (November 22, 2024), 89 FR 94784 (November 29, 2024) (SR-PEARL-2024-53) (Notice Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange To Allow the Exchange To List and Trade Options on the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, and the Bitwise Bitcoin ETF); 101718 (November 22, 2024), 89 FR 94812 (November 29, 2024) (SR-PEARL-2024-54) (Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange To Allow the Exchange To List and Trade Options on the Fidelity Wise Origin Bitcoin Fund (the “Fidelity Fund”) and the ARK 21Shares Bitcoin ETF (the “ARK 21 Fund”)).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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. In this regard and as indicated above, the Exchange notes that the rule change is being proposed as a competitive response to the filing submitted by Cboe.
                    <SU>40</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    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 options on the Fidelity Fund will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. Moreover, options on the Fidelity Fund will be subject to Exchange Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (including as proposed in the filing submitted by Exchange's affiliate, MIAX), and margin requirements. Also, and as stated above, the Exchange already lists options on other commodity ETFs structured as a trust.
                    <SU>41</SU>
                    <FTREF/>
                     Further, the Fidelity Fund would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as 
                    <PRTPAGE P="16365"/>
                    any other ETF for the Exchange to continue listing options on them.
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposal to list and trade options on the Fidelity Fund 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 Fidelity Fund 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 the Fidelity Fund. The Exchange notes that listing and trading Fidelity Fund 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.</P>
                <P>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 Fidelity Fund 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>Written comments were neither solicited nor received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>42</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>43</SU>
                    <FTREF/>
                     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 
                    <SU>44</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>45</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         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.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>46</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>47</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Fidelity Fund.
                    <SU>48</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Fidelity Fund, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Fidelity Fund. The proposal also establishes position and exercise limits for options on the Fidelity Fund and provides information regarding the surveillance procedures that will apply to Fidelity Fund options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Fidelity Fund options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>49</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-PEARL-2025-15 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-PEARL-2025-15. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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 
                    <PRTPAGE P="16366"/>
                    subject to copyright protection. All submissions should refer to file number SR-PEARL-2025-15 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>50</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>50</SU>
                             17 CFR 200.30-3(a)(12), (59).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06497 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102826; File No. SR-SAPPHIRE-2025-19]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities To List and Trade Options on the iShares Ethereum Trust</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 9, 2025, MIAX Sapphire, LLC (“MIAX Sapphire” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) a 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.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend proposes to amend Exchange Rule 402, Criteria for Underlying Securities to list and trade options on the iShares Ethereum Trust (the “Trust”).</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings,</E>
                     at the Exchange's principal office, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities,
                    <SU>3</SU>
                    <FTREF/>
                     to allow the Exchange to list and trade options on the Trust, designating it as appropriate for options trading on the Exchange.
                    <SU>4</SU>
                    <FTREF/>
                     This is a competitive filing based on a similar proposal submitted by Nasdaq ISE, LLC (“ISE”), which was approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange notes that its affiliate options exchanges, Miami International Securities Exchange, LLC (“MIAX”) and MIAX Pearl, LLC (“MIAX Pearl”), submitted (or will submit) substantively similar proposals. The Exchange notes that all the rules of Chapter III of MIAX, including Exchange Rules 307 and 309, are incorporated by reference into the MIAX Pearl and MIAX Sapphire rulebooks. The Exchange also notes that all of the rules of Chapter III of MIAX, including Exchange Rules 307 and 309, and the rules of Chapter IV of MIAX, including Exchange Rule 402, are incorporated by reference into the MIAX Emerald, LLC (“MIAX Emerald”) rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         See Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; 
                        <E T="03">and</E>
                         SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ethereum ETP Approval Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102798 (April 9, 2025) (Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on the iShares Ethereum Trust) (SR-ISE-2024-35) (“ISE Ether Approval Order”).
                    </P>
                </FTNT>
                <P>Current Exchange Rule 402(i)(4) provides that securities deemed appropriate for options trading include shares or other securities (“Exchange Traded Fund Shares” or “ETFs”) that are traded on a national securities exchange and are defined as “NMS stock” under Rule 600 of Regulation NMS, and that meet specified criteria enumerated in the rule. Subparagraph (4) of Exchange Rule 402(i) provides that such shares or other securities:</P>
                <EXTRACT>
                    <P>(4) are issued by the SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Silver ETF Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Palladium ETF Trust, the Aberdeen Standard Platinum ETF Trust, the Goldman Sachs Physical Gold ETF, the Sprott Physical Gold Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, or the ARK 21 Shares Bitcoin ETF ; or</P>
                </EXTRACT>
                <P>
                    In addition to the aforementioned requirements, Exchange Rule 402(i)(5)(i)(A) or (B) must be met to list options on ETFs.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Exchange Rule 402(i)(5)(i)(A) or (B) states that the Exchange-Traded Fund Shares either (i) meet the criteria and guidelines set forth in paragraphs (a) and (b) described herein; or (ii) the Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares, all as described in the Exchange-Traded Fund Shares' prospectus.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposal</HD>
                <P>
                    The Exchange proposes to amend Exchange Rule 402(i)(4) to expand the list of securities that are appropriate for options trading on the Exchange to include the Trust.
                    <SU>7</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Specifically, the Exchange proposes to amend Exchange Rule 402(i)(4) to include the name of the Trust to enable options to be listed on the Trust on the Exchange.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">
                    Description of the Trust 
                    <SU>8</SU>
                    <FTREF/>
                </HD>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         SR-NASDAQ-2023-045 for a complete description of the Trust.
                    </P>
                </FTNT>
                <P>
                    The shares are issued by the Trust, a Delaware statutory trust. The Trust will operate pursuant to a trust agreement (the “Trust Agreement”) between the Sponsor, BlackRock Fund Advisors (the “Trustee”) as the trustee of the Trust and will appoint Wilmington Trust, National Association, as Delaware Trustee of the Trust (the “Delaware Trustee”) by such time that the Registration Statement is effective. The Trust issues shares representing fractional undivided beneficial interests in its net assets. The assets of the Trust will consist only of Ether (“Ether” or “Ethereum”) held by a custodian on behalf of the Trust, except under limited circumstances when transferred through the Trust's prime broker temporarily (described below), and cash. Neither the Trust, nor the Sponsor, nor the Ether Custodian (as defined below), nor any other person associated with the Trust 
                    <PRTPAGE P="16367"/>
                    will, directly or indirectly, engage in action where any portion of the Trust's Ether becomes subject to the Ethereum proof-of-stake validation or is used to earn additional Ether or generate income or other earnings. Coinbase Custody Trust Company, LLC (the “Ether Custodian”), is the custodian for the Trust's Ether holdings, and maintains a custody account for the Trust (“Custody Account”); Coinbase, Inc. (the “Prime Execution Agent”), an affiliate of the Ether Custodian, is the prime broker for the Trust and maintains a trading account for the Trust (“Trading Account”); and The Bank of New York Mellon is the custodian for the Trust's cash holdings (the “Cash Custodian” and together with the Ether Custodian, the “Custodians”) and the administrator of the Trust (the “Trust Administrator”). Under the Trust Agreement, the Trustee may delegate all or a portion of its duties to any agent, and has delegated the bulk of the day-today responsibilities to the Trust Administrator and certain other administrative and recordkeeping functions to its affiliates and other agents. The Trust is not an investment company registered under the Investment Company Act of 1940, as amended.
                </P>
                <P>The investment objective of the Trust is to reflect generally the performance of the price of Ether. The Trust seeks to reflect such performance before payment of the Trust's expenses and liabilities. The Shares are intended to constitute a simple means of making an investment similar to an investment in Ether through the public securities market rather than by acquiring, holding and trading Ether directly on a peer-to-peer or other basis or via a digital asset platform. The Shares have been designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in Ether, while at the same time having an intrinsic value that reflects, at any given time, the investment exposure to the Ether owned by the Trust at such time, less the Trust's expenses and liabilities. Although the Shares are not the exact equivalent of a direct investment in Ether, they provide investors with an alternative method of achieving investment exposure to Ether through the public securities market, which may be more familiar to them.</P>
                <HD SOURCE="HD3">Custody of the Trust's Ether and Creation and Redemption</HD>
                <P>
                    An investment in the shares is backed by Ether held by the Ether Custodian on behalf of the Trust. All of the Trust's Ether will be held in the Custody Account, other than the Trust's Ether which is temporarily maintained in the Trading Account under limited circumstances, 
                    <E T="03">i.e.,</E>
                     in connection with creation and redemption Basket 
                    <SU>9</SU>
                    <FTREF/>
                     activity or sales of Ether deducted from the Trust's holdings in payment of Trust expenses or the Sponsor's fee (or, in extraordinary circumstances, upon liquidation of the Trust). The Custody Account includes all of the Trust's Ether held at the Ether Custodian, but does not include the Trust's Ether temporarily maintained at the Prime Execution Agent in the Trading Account from time to time. The Ether Custodian will keep all of the private keys associated with the Trust's Ether held in the Custody Account in “cold storage”.
                    <SU>10</SU>
                    <FTREF/>
                     The hardware, software, systems, and procedures of the Ether Custodian may not be available or cost effective for many investors to access directly.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The Trust issues and redeems Shares only in blocks of 40,000 or integral multiples thereof. A block of 40,000 shares is called a “Basket.” These transactions take place in exchange for ether.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         The term “cold storage” refers to a safeguarding method by which the private keys corresponding to the Trust's ether are generated and stored in an offline manner, subject to layers of procedures designed to enhance security. Private keys are generated by the Ether Custodian in offline computers that are not connected to the internet so that they are more resistant to being hacked.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot Ether as well as a hedging vehicle to meet their investment needs in connection with Ether products and positions. Similar to other commodity ETFs in which options may be listed on the Exchange (
                    <E T="03">e.g.,</E>
                     the SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Physical Gold Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, or the ARK 21Shares Bitcoin ETF),
                    <SU>11</SU>
                    <FTREF/>
                     the proposed ETF is a trust that essentially offers the same objectives and benefits to investors.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>Options on the Trust will trade in the same manner as any other ETF options on the Exchange. 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 (including as proposed in the filing submitted by Exchange's affiliate, MIAX), margin requirements, customer accounts and trading halt procedures will apply to the listing and trading of options on the Trust on the Exchange. Today, these rules apply to options on the various commodities ETFs deemed appropriate for options trading on the Exchange pursuant to current Exchange Rule 402(i)(4).</P>
                <P>The Exchange's initial listing standards for ETFs on which options may be listed and traded on the Exchange will apply to the Trust. The initial listing standard as set forth in Exchange Rule 402(a) provides that:</P>
                <EXTRACT>
                    <P>Underlying securities with respect to which put or call options contracts are approved for listing and trading on the Exchange must meet the following criteria: (1) the security must be registered and be an “NMS stock” as defined in Rule 600 of Regulation NMS under the Exchange Act; and (2) the security shall be characterized by a substantial number of outstanding shares that are widely held and actively traded.</P>
                </EXTRACT>
                <P>Pursuant to Exchange Rule 402, ETFs on which options may be listed and traded must satisfy the listing standards set forth in Exchange Rule 402(5). Specifically, the Trust must:</P>
                <EXTRACT>
                    <P>
                        (1) meet the criteria and standards set forth in Exchange Rule 402(a) or 402(b),
                        <SU>12</SU>
                        <FTREF/>
                         or
                    </P>
                    <FTNT>
                        <P>
                            <SU>12</SU>
                             Subparagraphs a. and b. of Exchange Rule 402 provide for guidelines to be used by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                        </P>
                    </FTNT>
                    <P>(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.</P>
                </EXTRACT>
                <P>
                    Options on the Trust will also be subject to the Exchange's continued listing standards set forth in Exchange Rule 403(g). Specifically, options approved for trading pursuant to Exchange Rule 402(i) will not 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 cease to be an NMS stock or the ETFs, are delisted from trading pursuant to Exchange Rule 403(b)(4), or the ETFs are halted or suspended from trading in 
                    <PRTPAGE P="16368"/>
                    their primary market.
                    <SU>13</SU>
                    <FTREF/>
                     In addition, the Exchange shall consider the suspension of opening transactions in any series of options of the class covering ETFs in any of the following circumstances:
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 403(g).
                    </P>
                </FTNT>
                <EXTRACT>
                    <P>
                        (1) in the case of options covering ETFs approved for trading under Exchange Rule 402(i)(5)(i)(A), in accordance with the terms of paragraphs (b)(1), (2), and (3) of Exchange Rule 403; 
                        <SU>14</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>14</SU>
                             Exchange Rules 403(b)(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 Act.
                        </P>
                    </FTNT>
                    <P>(2) in the case of options covering ETFs approved for trading under Exchange Rule 402(i)(5)(i)(B), 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;</P>
                    <P>(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 ETFs are based is no longer calculated or available; or</P>
                    <P>(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.</P>
                </EXTRACT>
                <P>
                    Options on the Trust would be physically settled contracts with American-style exercise.
                    <SU>15</SU>
                    <FTREF/>
                     Consistent with current Exchange Rule 404, 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 the Trust 
                    <SU>16</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on the Trust for trading on a weekly,
                    <SU>17</SU>
                    <FTREF/>
                     monthly,
                    <SU>18</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>19</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) that expire from 12 to 39 months from the time they are listed.
                    <SU>20</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 401, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(b). The monthly expirations are subject to certain listing criteria for underlying securities described within Exchange Rule 404 and its Interpretations and Policies. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Exchange Rule 404(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 404(e), 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretations and Policy.02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretations and Policy.13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretations and Policy.03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 406.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Exchange Rule 404, Interpretations and Policies .06, which governs strike prices of series of options on ETFs, the interval between strike prices of series of options on ETFs approved for options trading pursuant to Exchange Rule 402(i) shall be fixed at a price per share which is reasonably close to the price per share at which the underlying security is traded in the primary market at or about the same time such series of options is first open for trading on the Exchange, or at such intervals as may have been established on another options exchange prior to the initiation of trading on the Exchange. With respect to the Short Term Options Series or Weekly Program, during the month prior to expiration of an option class that is selected for the Short Term Option Series Program, the strike price intervals for the related non-Short Term Option (“Related non-Short Term Option”) shall be the same as the strike price intervals for the Short Term Option.
                    <SU>21</SU>
                    <FTREF/>
                     Specifically, the Exchange may open for trading Short Term Option Series at strike price intervals of (i) $0.50 or greater where the strike price is less than $100, and $1 or greater where the strike price is between $100 and $150 for all option classes that participate in the Short Term Options Series Program; (ii) $0.50 for option classes that trade in one dollar increments and are in the Short Term Option Series Program; or (iii) $2.50 or greater where the strike price is above $150.
                    <SU>22</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>23</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>24</SU>
                    <FTREF/>
                     and the $2.50 Strike Price Program.
                    <SU>25</SU>
                    <FTREF/>
                     Pursuant to Exchange Rule 510, where the price of a series of options on the Trust 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 
                    <SU>26</SU>
                    <FTREF/>
                     consistent with the minimum increments for options on other ETFs listed on the Exchange. Any and all new series of Trust options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Exchange Rules 404 and 510, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretations and Policy .02(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(f).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 510.
                    </P>
                </FTNT>
                <P>Trust 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 (including as proposed in the filing submitted by the Exchange's affiliate, MIAX), margin requirements, customer accounts and trading halt procedures will apply to the listing and trading of Trust options 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 402(i)(4).</P>
                <P>
                    Position and exercise limits for options on ETFs, including options on the Trust, are determined pursuant to MIAX Rules 307 and 309, respectively, as incorporated by reference into the MIAX Sapphire Rulebook. Position and exercise limits for ETF options vary according to the number of outstanding shares and the trading volumes of the underlying ETF over the past six months, where the largest in capitalization and the most frequently traded ETFs have an option position and exercise limit of 250,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market; and smaller capitalization ETFs have position and exercise limits of 200,000, 75,000, 50,000 or 25,000 contracts (with adjustments for splits, re-capitalizations, etc.) on the same side of the market.
                    <PRTPAGE P="16369"/>
                </P>
                <P>The Exchange further notes that MIAX Rule 1502, which governs margin requirements applicable to trading on the Exchange, including options on ETFs, will also apply to the trading of the Trust options, as MIAX Chapter XV (Margins) is also incorporated by reference into the MIAX Sapphire Rulebook. Notwithstanding the position limits in MIAX Rule 307(d) and exercise limits in MIAX Rule 309, the Exchange proposes the position and exercise limits for the Trust to be 25,000 contracts on the same side pursuant to proposed Interpretations and Policy .01 to MIAX Rule 307 and proposed Interpretations and Policy .01 to MIAX Rule 309.</P>
                <P>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 the Trust. Also the Exchange represents 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 the proposed Trust options.</P>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to the Trust options that it applies to the Exchange's other options products.
                    <SU>27</SU>
                    <FTREF/>
                     The Exchange's staff will have access to the surveillance programs conducted by its affiliate exchanges, MIAX and MIAX Pearl, with respect to trading in the shares of the underlying Ether Trust when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining surveillance data from MIAX and MIAX Pearl, the Exchange will be able to obtain information regarding trading in the shares of the underlying Trust from Nasdaq, ISE, and Cboe and other markets through ISG. In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”). Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>28</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         The surveillance program includes real-time patterns for price and volume movements and post-trade surveillance patterns (
                        <E T="03">e.g.,</E>
                         spoofing, marking the close, pinging, phishing).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>The underlying shares of spot Ethereum exchange-traded products (“ETPs”), including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, </P>
                <EXTRACT>
                    <FP>
                        [e]ach Exchange has a comprehensive surveillance sharing agreement with the [Chicago Mercantile Exchange (“CME”)] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME Ethereum futures market.
                        <SU>29</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>29</SU>
                             
                            <E T="03">See</E>
                             Ethereum ETP Approval Order, 89 FR at 46938.
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that in the Ethereum ETP Approval Order, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>30</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46939.
                    </P>
                </FTNT>
                <P>
                    In light of surveillance measures related to both options and futures as well as the Trust,
                    <SU>31</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust. Additionally, the Exchange may obtain trading information via ISG from other exchanges who are members or affiliates of the ISG.
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>The Exchange has also analyzed its capacity and represents that it believes the Exchange and 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 the Trust up to the number of expirations currently permissible under the Rules. Because the proposal is limited to one class, the Exchange believes any additional traffic that may be generated from the introduction of the Trust options will be manageable.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>32</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>33</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to and perfect the mechanism of a free and open market and a national market system, and, in general, to protect investors and the public interest. Additionally, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>34</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    In particular, the Exchange believes that the proposal to list and trade options on the Trust 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 the Trust will provide investors with a greater opportunity to realize the benefits of utilizing options on an ETF based on spot Ethereum, including cost 
                    <PRTPAGE P="16370"/>
                    efficiencies and increased hedging strategies. The Exchange believes that offering options on a competitively priced ETF based on spot Ethereum will benefit investors by providing them with an additional, relatively lower-cost risk management tool, allowing them to manage, more easily, their positions and associated risks in their portfolios in connection with exposure to spot Ethereum. Today, the Exchange lists options on other commodity ETFs structured as a trust, which essentially offer the same objectives and benefits to investors, and for which the Exchange has not identified any issues with the continued listing and trading of options on those ETFs.
                </P>
                <P>The Exchange also believes the proposal to permit options on the Trust will remove impediments to and perfect the mechanism of a free and open market and a national market system, because options on the Trust will comply with current Exchange Rules. Options on the Trust 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 pursuant to Exchange Rule 402(i)(4). Additionally, as demonstrated above, the Trust is characterized by a substantial number of shares that are widely held and actively traded. Further, Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (including as proposed in the filing submitted by Exchange's affiliate, MIAX), and margin requirements, will govern the listing and trading of options on the Trust.</P>
                <P>The Exchange believes the proposed position and exercise limits, as proposed in the filing submitted by Exchange's affiliate, MIAX, are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits for options for the Trust is 25,000 contracts, which is currently the lowest limit applicable to any equity options (including ETF options) and the position and exercise limits that apply to comparable ETFs that hold Bitcoin. The Exchange believes the proposed position and exercise limits, as proposed in the filing submitted by Exchange's affiliate, MIAX, are extremely conservative for the Trust options given the trading volume and outstanding shares for the Trust.</P>
                <P>
                    The Exchange represents that it has the necessary systems capacity to support the new Trust options. As discussed above, 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 Trust options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on the Trust. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on the Trust. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on the Trust in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Trust and, as appropriate, would review activity in the underlying Fund when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining surveillance data from MIAX and MIAX Pearl, the Exchange will be able to obtain information from Nasdaq, ISE, Cboe and other markets through ISG. In addition, the Exchange has a Regulatory Services Agreement with FINRA. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>35</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>The underlying shares of spot Ethereum ETPs, including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs:</P>
                <EXTRACT>
                    <FP>
                        [e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group.
                        <SU>36</SU>
                        <FTREF/>
                         This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.
                        <SU>37</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>36</SU>
                             
                            <E T="03">See</E>
                             Ethereum ETP Approval Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that in the Ethereum ETP Approval Order, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>38</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46941.
                    </P>
                </FTNT>
                <P>
                    In light of surveillance measures related to both options and futures as well as the underlying Trust,
                    <SU>39</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Options on the Trust must satisfy the initial listing standards and continued listing standards currently in the Exchange Rules, applicable to options on all ETFs, including options on other commodity ETFs already deemed appropriate for options trading on the Exchange pursuant to Exchange Rule 402(i)(4).
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust.</P>
                <P>
                    Finally, the Commission has previously approved the listing and 
                    <PRTPAGE P="16371"/>
                    trading of options on other cryptocurrency backed commodity ETFs structured as trusts.
                    <SU>40</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 101699 (November 21, 2024), 89 FR 93757 (November 27, 2024) (SR-SAPPHIRE-2024-36) (Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities To List and Trade Options on the iShares Bitcoin Trust); 101745 (November 25, 2024), 89 FR 94784 (December 2, 2024) (SR-SAPPHIRE-2024-37) (Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, To List and Trade Options on the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, and the Bitwise Bitcoin ETF); 101730 (November 25, 2024), 89 FR 95301 (December 2, 2024) (SR-SAPPHIRE-2024-38) (Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities To List and Trade Options on the Fidelity Wise Origin Bitcoin Fund (the “Fidelity Fund”) and the ARK 21Shares Bitcoin ETF (the “ARK 21 Fund”).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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. In this regard and as indicated above, the Exchange notes that the rule change is being proposed as a competitive response to the filing submitted by ISE.
                    <SU>41</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    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 options on the Trust will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. Moreover, options on the Trust will be subject to Exchange Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (including as proposed in the filing submitted by Exchange's affiliate, MIAX), and margin requirements. Also, and as stated above, the Exchange already lists options on other cryptocurrency backed commodity ETFs structured as trusts.
                    <SU>42</SU>
                    <FTREF/>
                     Further, the Trust would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other ETF for the Exchange to continue listing options on it.
                </P>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposal to list and trade options on the Trust 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 the Trust 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 Trust. The Exchange notes that listing and trading Trust 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.</P>
                <P>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 the Trust 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>Written comments were neither solicited nor received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>43</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>44</SU>
                    <FTREF/>
                     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 
                    <SU>45</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>46</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has waived the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>47</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>48</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the iShares Ethereum Trust (the “Trust”).
                    <SU>49</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Trust, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Trust. The proposal also establishes position and exercise limits for options on the Trust and provides information regarding the surveillance procedures that will apply to Trust options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Trust options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>50</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>
                    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 
                    <PRTPAGE P="16372"/>
                    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.
                </P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-SAPPHIRE-2025-19 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-SAPPHIRE-2025-19. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-SAPPHIRE-2025-19 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>51</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>51</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06504 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>Release No. 34-102833; File No. SR-CboeBZX-2025-056]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 19.3</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 10, 2025, Cboe BZX Exchange, Inc. (the “Exchange” or “BZX”) 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 Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe BZX Exchange, Inc. (the “Exchange” or “BZX Options”) proposes to amend Rule 19.3 regarding the criteria for underlying securities. The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose </HD>
                <P>
                    The Exchange proposes to amend Rule 19.3 regarding the criteria for underlying securities. Specifically, the Exchange proposes to amend Rule 19.3(i)(4) to allow the Exchange to list and trade options on shares or other securities (“Fund Shares”) that are principally traded on a national securities exchange and are defined as an “NMS stock” under Rule 600 of Regulation NMS and that represent interests in the Fidelity Ethereum Fund (the “Fidelity Fund”).
                    <SU>5</SU>
                    <FTREF/>
                     This is a competitive filing based on a similar proposal submitted by Cboe Exchange, Inc., which was recently approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>6</SU>
                    <FTREF/>
                     Current Rule 19.3(i) provides that, subject to certain other criteria set forth in that Rule, securities deemed appropriate for options trading include Fund Shares that represent certain types of interests,
                    <SU>7</SU>
                    <FTREF/>
                     including interests in 
                    <PRTPAGE P="16373"/>
                    certain specific trusts that hold financial instruments, money market instruments, or precious metals (which are deemed commodities).
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; and SRCboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ethereum ETP Approval Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 100862 (August 28, 2024), 89 FR 72146 (August 28, 2024) (SR-CBOE-2024-036); and 102797 (April 9, 2025) (SR-CBOE-2024-036) (“Cboe Approval Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i) which permits options trading on Fund Shares that (1) represent interests in registered investment companies (or series thereof) organized as open-end management investment companies, unit investment trusts or similar entities, and that hold portfolios of securities comprising or otherwise based on or representing investments in indexes or portfolios of securities (or that hold securities in one or more other registered investment companies that themselves hold such portfolios of securities) (“Funds ”) and/or financial instruments including, but not limited to, stock index futures contracts, options on futures, options on securities and indexes, 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 
                        <PRTPAGE/>
                        limited to, U.S. government securities and repurchase agreements (the “Money Market Instruments”) constituting or otherwise based on or representing an investment in an index or portfolio of securities and/or Financial Instruments and Money Market Instruments, or (2) 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 477 contracts and/or options on physical commodities and/or non-U.S. currency (“Commodity Pool ETFs”) or (3) represent interests in a trust or similar entity that holds a specified non-U.S. currency or currencies 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 (4) represent interests in the SPDR Gold Trust or are issued by the iShares COMEX Gold Trust or iShares Silver Trust.
                    </P>
                </FTNT>
                <P>
                    The Fidelity Fund is an Ethereum-backed commodity ETF structured as a trust. Similar to any Fund Share currently deemed appropriate for options trading under Rule 19.3(i), the investment objective of the Fidelity Fund is for its shares to reflect the performance of Ethereum (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to Ethereum without the complexities of Ethereum delivery. As is the case for Fund Shares currently deemed appropriate for options trading, the Fidelity Fund's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of Ethereum and are designed to track Ethereum or the performance of the price of Ethereum and offer access to the Ethereum market.
                    <SU>8</SU>
                    <FTREF/>
                     The Fidelity Fund provides investors with cost-efficient alternatives that allow a level of participation in the Ethereum market through the securities market. The primary substantive difference between the Fidelity Fund and Fund Shares currently deemed appropriate for options trading are that Fund Shares may hold securities, certain financial instruments, specified precious metals (which are deemed commodities), and Bitcoin (which is also deemed a commodity), while the Fidelity Fund holds Ethereum (which is also deemed a commodity).
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes the Fidelity Fund satisfies the Exchange's initial listing standards for Fund Shares on which the Exchange may list options. Specifically, the Fidelity Fund satisfies the initial listing standards set forth in Rule 19.3(i), as is the case for other Fund Shares on which the Exchange lists options (including trusts that hold commodities). Rule 19.3(i)(1) requires that Fund Shares either (1) meet the criteria and standards set forth in Rule 19.3(a) and (b),
                    <SU>9</SU>
                    <FTREF/>
                     or (2) are available for creation or redemption each business day in cash or in kind from the investment company, commodity pool or other entity at a price related to net asset value, and the investment company, commodity pool or other entity is obligated to provide that Fund Shares may be created even if some or all of the securities and/or cash required to be deposited have not been received by the Fund, the unit investment trust or the management investment company, provided the authorized creation participant has undertaken to deliver the securities and/or cash as soon as possible and such undertaking is secured by the delivery and maintenance of collateral consisting of cash or cash equivalents satisfactory to the Fund, all as described in the Fund's or unit trust's prospectus. The Fidelity Fund satisfies Rule 19.3(i)(1)(B) as each is subject to this creation and redemption process.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         Rule 19.3(a) and (b) sets forth the criteria an underlying security must meet for the Exchange to be able to list options on the underlying.
                    </P>
                </FTNT>
                <P>
                    While not required by the Rules for purposes of options listings, the Exchange believes the Fidelity Fund satisfies the criteria and guidelines set forth in Rule 19.3(a) and (b). Pursuant to Rule 19.3(a), a security (which includes a Fund Share) on which options may be listed and traded on the Exchange must be registered with the Commission and be an NMS stock (as defined in Rule 600 of Regulation NMS under the Securities Exchange Act of 1934, as amended (the “Act”)), and be characterized by a substantial number of outstanding shares that are widely held and actively traded.
                    <SU>10</SU>
                    <FTREF/>
                     The Fidelity Fund is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>11</SU>
                    <FTREF/>
                     The Exchange believes the Fidelity Fund is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 19.3(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <P>
                    As of December 23, 2024, the Fidelity Fund had 41,700,000 shares outstanding, which is nearly six times more than the minimum number of shares of a corporate stock (
                    <E T="03">i.e.,</E>
                     7,000,000 shares) that the Exchange generally requires to list options on that stock pursuant to Rule 19.3(b)(1). The Exchange believes this demonstrates that the Fidelity Fund is characterized by a substantial number of outstanding shares.
                </P>
                <P>
                    Further, as of November 26, 2024, there were 38,170 beneficial holders of shares of the Fidelity Fund, which is significantly more than 2,000 beneficial holders (approximately 19 times more), which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to Rule 19.3(b). Therefore, the Exchange believes the shares of the Fidelity Fund are widely held.
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         The Exchange continues to believe assets under management (“AUM”), rather than shares outstanding and number of holders, is a better measure of investable capacity of ETFs and a more appropriate figure for determining position and exercise limits of ETFs and looks forward to further discussions with the Commission staff on this topic.
                    </P>
                </FTNT>
                <P>The Exchange also believes the shares of the Fidelity Fund are actively traded. As of December 23, 2024, the total trading volume (by shares) and the approximate average daily volume (“ADV”) (in shares and notional) from July 23, 2024 (the date on which shares of the Fidelity Fund began trading) to December 23, 2024 for the Fidelity Fund was as follows:</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s11C,9C,12C">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Trading volume 
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV 
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV 
                            <LI>(notional $)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">115,589,047</ENT>
                        <ENT>1,070,269</ENT>
                        <ENT>33,864,193</ENT>
                    </ROW>
                </GPOTABLE>
                <P>As demonstrated above, despite the fact that the Fidelity Fund has been trading for approximately five months as of December 23, 2024, its total trading volume as of that date was substantially higher than 2,400,000 shares (more than 48 times that amount), which is the minimum 12-month volume the Exchange generally requires for a corporate stock in order to list options on that security as set forth in Rule 19.3(b). Additionally, as of December 23, 2024, the trading volume for the Fidelity Fund was in the top 5% of all ETFs that are currently trading. The Exchange believes this data demonstrates the Fidelity Fund is characterized as having shares that are actively traded.</P>
                <P>
                    Options on the Fidelity Fund will be subject to the Exchange's continued listing standards set forth in Rule 19.4(g) for Fund Shares deemed appropriate for options trading pursuant to Rule 19.3(i). Specifically, 19.4(g) provides that Fund 
                    <PRTPAGE P="16374"/>
                    Shares that were initially approved for options trading pursuant to Rule 19.3 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 Fund Shares if the security ceases to be an NMS stock (see Rule 19.4(b)(4)). Additionally, the Exchange will not open for trading any additional series of option contracts of the class covering Fund Shares in any of the following circumstances: (1) in the case of options covering Fund Shares approved for trading under Rule 19.3(i)(4)(A), in accordance with the terms of Rule 19.4(b)(1), (2) and (3); (2) in the case of options covering Fund Shares approved pursuant to Rule 19.3(i)(4)(B), following the initial 12-month period beginning upon the commencement of trading in the Fund Shares on a national securities exchange and are defined as NMS stock under Rule 600 of Regulation NMS, there were fewer than 50 record and/or beneficial holders of such Fund Shares for 30 consecutive days; (3) the value of the index, non-U.S. currency, 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 or Money Market Instruments, or portfolio of securities on which the 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.
                </P>
                <P>
                    Options on the Fidelity Fund will be physically settled contracts with American-style exercise.
                    <SU>13</SU>
                    <FTREF/>
                     Consistent with current Rule 19.6, which governs the opening of options series on a specific underlying security (including Fund Shares), the Exchange will open at least one expiration month for options on the Fidelity Fund 
                    <SU>14</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on the Fidelity Fund for trading on a weekly,
                    <SU>15</SU>
                    <FTREF/>
                     monthly,
                    <SU>16</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>17</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) that expire from 12 to 39 months from the time they are listed.
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Rule 19.2, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">and</E>
                         Equity Options Product Specifications January 3, 2024), available at Equity Options Specifications (
                        <E T="03">cboe.com</E>
                        ); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6(b). The monthly expirations are subject to certain listing criteria for underlying securities described within Rule 19.3. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Rule 19.6(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. 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .05.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .08.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Rule 19.8.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rule 19.6, Interpretation and Policy .01, which governs strike prices of series of options on Fund Shares, the interval of strikes prices for series of options on the Fidelity Fund will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>19</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>20</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>21</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>22</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>23</SU>
                    <FTREF/>
                     Pursuant to Rule 21.5, where the price of a series of a Fidelity Fund 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.
                    <SU>24</SU>
                    <FTREF/>
                     Any and all new series of Fidelity Fund options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 19.6 and 21.5, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Rule 19.6, Interpretations and Policies .05, .08, and .04 specifically sets forth intervals between strike prices on Quarterly Options Series, Short Term Option Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .06.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6(d)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         If options on the Fidelity Fund 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. 
                        <E T="03">See</E>
                         21.5(d) (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rules 18.7 and 18.9, the position and exercise limits, respectively, for Fidelity Fund options will be 25,000 same side option contracts.
                    <SU>25</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         Rule 18.7(a)(1) provides that no Options Member shall make, for any account in which it has any interest or for the account of any Customer, an opening transaction on any exchange if the Options Member has reason to believe that as a result of such transaction the Options Member or its Customer would, acting alone or in concert with others, directly or indirectly, exceed the applicable position limit fixed by Cboe Exchange, Inc. (“Cboe Options”). The Commission recently approved a nearly identical rule filing of Cboe Options to amend Cboe Options Rule 8.30, Interpretation and Policy .10 (and Cboe Options Rule 8.42) to establish a position and exercise limit for Fidelity Fund options of 25,000. 
                        <E T="03">See</E>
                         Cboe Approval Order. Therefore, those position and exercise limits apply to the Exchange.
                    </P>
                </FTNT>
                <P>The Exchange believes these proposed position and exercise limits are reasonable and appropriate considering, among other things, the ADV (since trading of the Fidelity Fund began on July 23, 2024) and outstanding shares of the Fidelity Fund (which as discussed above demonstrate that the Fidelity Fund is widely held and actively traded and thus justify these conservatively proposed position limits), as set forth below, along with market capitalization (as of December 23, 2024):</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s14,20,25">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">Outstanding shares</CHED>
                        <CHED H="1">
                            Market
                            <LI>capitalization</LI>
                            <LI>($)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1,070,269</ENT>
                        <ENT>41,700,000</ENT>
                        <ENT>1,433,229,000</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    The Exchange then compared the number of outstanding shares of the Fidelity Fund to those of other ETFs. The approximate average position (and exercise limit) of ETF options with similar outstanding shares (as of December 31, 2024) was approximately 102,703 contracts, which is significantly higher (approximately 4 times) than the proposed position and exercise limit of 25,000 contracts for Fidelity Fund 
                    <PRTPAGE P="16375"/>
                    options.
                    <SU>26</SU>
                    <FTREF/>
                     As discussed above, shares of the Fidelity Fund are actively held and widely traded: (1) the Fidelity Fund (as of December 23, 2024) had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to Rule 19.3(b)(1); (2) the Fidelity Fund (as of November 26, 2024) had significantly more than 2,000 beneficial holders, which is the minimum number of holders the Exchange generally requires for corporate stock in order to list options on that stock pursuant to Rule 19.3(b)(2); and (3) the Fidelity Fund had a trading volume in the approximately five-month time period since it began trading substantially higher than 2,400,000 shares, which is the minimum 12-month volume the Exchange generally requires for a security in order to list options on that security as set forth in Rule 19.3(b)(4).
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         The position limits for those ETF options for which the underlying ETFs had similar outstanding shares were all 50,000 or above, and nearly half of them had position limits of 200,000 or 250,000 contracts.
                    </P>
                </FTNT>
                <P>With respect to outstanding shares, if a market participant held the maximum number of positions possible pursuant to the proposed position and exercise limits, the equivalent shares represented by the proposed position/exercise limit would represent approximately 6.0% of the 41,700,000 current outstanding shares of the Fidelity Fund. Therefore, if a market participant held the maximum permissible options positions in Fidelity Fund options and exercised all of them at the same time, that market participant would control a small percentage of the outstanding shares of the Fidelity Fund.</P>
                <P>
                    Cboe Options Rule 8.30, Interpretation and Policy .02 (which governs position limits on the Exchange pursuant to Rule 18.7), provides two methods of qualifying for a position limit tier above 25,000 option contracts. The first method is based on six-month trading volume in the underlying security, and the second method is based on slightly lower six-month trading volume 
                    <E T="03">and</E>
                     number of shares outstanding in the underlying security. An underlying stock or ETF that qualifies for method two based on trading volume and number of shares outstanding would be required to have the minimum number of outstanding shares as shown in middle column of the table below.
                </P>
                <P>The table, which provides the equivalent shares of the position limits applicable to equity options, including ETFs, further represents the percentages of the minimum number of outstanding shares that an underlying stock or ETF must have to qualify for that position limit (under the second method described above).</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s50,12,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Position/exercise limit
                            <LI>(in equivalent shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Minimum
                            <LI>outstanding</LI>
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage of outstanding shares
                            <LI>(%)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">2,500,000</ENT>
                        <ENT>6,300,000</ENT>
                        <ENT>40.0</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5,000,000</ENT>
                        <ENT>40,000,000</ENT>
                        <ENT>12.5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">7,500,000</ENT>
                        <ENT>120,000,000</ENT>
                        <ENT>6.3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20,000,000</ENT>
                        <ENT>240,000,000</ENT>
                        <ENT>8.3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">25,000,000</ENT>
                        <ENT>300,000,000</ENT>
                        <ENT>8.3</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    The equivalent shares represented by the proposed position and exercise limits for the Fidelity Fund as a percentage of outstanding shares of the Fidelity Fund is significantly lower than the percentage for the lowest possible position limit for equity options of 25,000, which is the position limit the Exchange is proposing for Fidelity Fund options.
                    <SU>27</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         As these percentages are based on the minimum number of outstanding shares an underlying security must have to qualify for the applicable position limit, these are the highest possible percentages that would apply to any option subject to that position and exercise limit. 6,300,000 is the minimum number of outstanding shares an underlying security must have for the Exchange to continue to list options on that security, so this would be the smallest number of outstanding shares permissible for any corporate option that would have a position limit of 25,000 contract. 
                        <E T="03">See</E>
                         Rule 19.4(b)(1). This rule applies to corporate stock options but not ETF options, which currently have no requirement regarding outstanding shares of the underlying ETF for the Exchange to continue listing options on that ETF. Therefore, there may be ETF options trading for which the 25,000 contract position limits represents an even larger percentage of outstanding shares of the underlying ETF than set forth above.
                    </P>
                </FTNT>
                <P>
                    Further, the proposed position and exercise limit for Fidelity Fund options is equal to the lowest position and exercise limits available in the options industry for equity options, are extremely conservative and more than appropriate given the market capitalization, average daily volume, and high number of outstanding shares of the Fidelity Fund. The proposed position and exercise limit for the Fidelity Fund is also equal to the position and exercise limits for ETFs that hold Bitcoin, as recently approved by the Commission.
                    <SU>28</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 101387 (October 18, 2024), 89 FR 84948 (October 24, 2024) (SR-CBOE-2024-035) (“Bitcoin ETF Option Approval”); 
                        <E T="03">see also</E>
                         Cboe Options Rules 8.30, Interpretation and Policy .10 and 8.42 (which applies to the Exchange pursuant to Rule 18.7 and 18.9).
                    </P>
                </FTNT>
                <P>All of the above information demonstrates that the proposed position and exercise limits for Fidelity Fund options are more than reasonable and appropriate. The trading volume, ADV, and outstanding shares of the Fidelity Fund demonstrate that its shares are actively traded and widely held, and proposed position and exercise limit is well below those of options on other ETFs with similar market characteristics. The proposed position and exercise limit would be the lowest position and exercise limit available for equity options in the industry, are extremely conservative, and are more than appropriate given the Fidelity Fund's market capitalization, ADV, and high number of outstanding shares.</P>
                <P>Fidelity Fund options will trade in the same manner as any other Fund Share options on the Exchange. The Exchange Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Fidelity Fund options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange, including the precious-metal backed commodity Fund Shares already deemed appropriate for options trading on the Exchange pursuant to current Rule 19.3(i).</P>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to 
                    <PRTPAGE P="16376"/>
                    options on the Fidelity Fund that it applies to the Exchange's other options products.
                    <SU>29</SU>
                    <FTREF/>
                     The Exchange's market surveillance staff would have access to the surveillances conducted by the Exchange with respect to the Fidelity Fund and would review activity in the Fidelity Fund when conducting surveillances for market abuse or manipulation in the options on the Fidelity Fund. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining information from the Exchange's equities, the Exchange would be able to obtain information regarding trading of shares of the Fidelity Fund through ISG.
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         The surveillance program includes surveillance patterns for price and volume movements as well as patterns for potential manipulation (
                        <E T="03">e.g.,</E>
                         spoofing and marking the close).
                    </P>
                </FTNT>
                <P>
                    In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”) for certain market surveillance, investigation and examinations functions. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate amongst themselves and FINRA responsibilities to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>30</SU>
                    <FTREF/>
                     The underlying shares of spot Ethereum exchange-traded products (“ETPs”), including the Fidelity Fund, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the [Chicago Mercantile Exchange (“CME”)] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>31</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>32</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the Fidelity Fund,
                    <SU>33</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Fidelity Fund. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Fidelity Fund.
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         Section 19(g)(1) of the Act, among other things, requires every self-regulatory organization (“SRO”) registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46939.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 2 to SR-CboeBZX-2023-095, Proposed Rule Change To List and Trade Shares of the Fidelity Ethereum Fund Under BZX Rule 14.11(e)(4), Commodity-Based Trust Shares (filed May 21, 2024); 
                        <E T="03">see also</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>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 the Fidelity Fund up to the number of expirations currently permissible under the Rules. Because the proposal is limited to one class, the Exchange believes any additional traffic that may be generated from the introduction of Fidelity Fund options will be manageable.</P>
                <P>
                    The Exchange believes that offering options on the Fidelity Fund will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of Ethereum and hedging vehicle to meet their investment needs in connection with Ethereum-related products and positions. The Exchange expects investors will transact in options on the Fidelity Fund in the unregulated over-the-counter (“OTC”) options market,
                    <SU>34</SU>
                    <FTREF/>
                     but may prefer to trade such options in a listed environment to receive the benefits of trading listed options, including (1) enhanced efficiency in initiating and closing out positions; (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 Fidelity Fund 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 Fund Shares 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 the Fidelity Fund 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 Fund Share options, including Fund Shares that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals) that it currently lists and trades on the Exchange. The Exchange notes that quotation and last sale information for shares of the Fidelity Fund are available from the CTA high-speed lines, as well as from the Exchange's equities market (on which the shares are primarily listed). Quotation and last sale information for options on the Fidelity Fund will be available from OPRA and market data vendors.
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         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.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2.  Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>35</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>36</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to 
                    <PRTPAGE P="16377"/>
                    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) 
                    <SU>37</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    In particular, the Exchange believes that the proposal to list and trade options on the Fidelity Fund 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 the Fidelity Fund will provide investors with an opportunity to realize the benefits of utilizing options on the Fidelity Fund, including cost efficiencies and increased hedging strategies. The Exchange believes that offering Fidelity Fund 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 Ethereum and with Ethereum-related products and positions. Additionally, the Exchange's offering of Fidelity Fund 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 (or has the authority to list) options on other commodity-based Fund Shares,
                    <SU>38</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as the Fidelity Fund and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     Ethereum rather than Bitcoin or precious metals) and for which the Exchange has not identified any issues with the continued listing and trading of commodity-backed Fund Share options it currently lists for trading.
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i)(4).
                    </P>
                </FTNT>
                <P>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 the Fidelity Fund satisfy the initial listing standards and continued listing standards currently in the Exchange Rules applicable to options on all Fund Shares, including Fund Shares that hold other commodities already deemed appropriate for options trading on the Exchange. Additionally, as demonstrated above, the Fidelity Fund is characterized by a substantial number of shares that are widely held and actively traded. Fidelity Fund options will trade in the same manner as any other Fund Share options—the same Exchange Rules that currently govern the listing and trading of all Fund Share options, including permissible expirations, strike prices and minimum increments, and applicable margin requirements, will govern the listing and trading of options on the Fidelity Fund in the same manner.</P>
                <P>
                    The Exchange believes the proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits in this are 25,000 contracts, which is currently the lowest limit applicable to any equity options (including ETF options) and the position and exercise limits that apply to comparable ETFs that hold Bitcoin.
                    <SU>39</SU>
                    <FTREF/>
                     The Exchange believes the proposed position and exercise limits are extremely conservative for Fidelity Fund options given the trading volume and outstanding shares for the Fidelity Fund. The information above demonstrates that the average position and exercise limits of options on ETFs with comparable outstanding shares and trading volume to those of the Fidelity Fund are significantly higher than the proposed position and exercise limits for Fidelity Fund options. Therefore, the proposed position and exercise limits for Fidelity Fund options are conservative relative to options on ETFs with comparable market characteristics.
                </P>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See</E>
                         Cboe Options Rule 8.30.
                    </P>
                </FTNT>
                <P>
                    Further, given that the issuer of the Fidelity Fund may create and redeem shares that represent an interest in Ethereum, the Exchange believes it is relevant to compare the size of a position limit to the market capitalization of the Ethereum market. As of December 23, 2024, the global supply of Ethereum was approximately 120,000,000 coins, and the price of one Ethereum coin was approximately $3,494.25,
                    <SU>40</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $419.31 billion. Consider the proposed position and exercise limit of 25,000 option contracts for the Fidelity Fund option. A position and exercise limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 of Fidelity Fund shares (if that market participant exercised all its options). Using a share price of $34.37 on December 23, 2024, the value of 2,500,000 shares of the Fidelity Fund at that price is $85,925,000, and the approximate percentage of that value of the size of the Ethereum market is 0.02%. Therefore, if a market participant with the maximum 25,000 same side contracts in Fidelity Fund options exercised all positions at one time, such an event would have no practical impact on the Ethereum market.
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         
                        <E T="03">See</E>
                         Ethereum Price (ETH), Market Cap, Price Today &amp; Chart History—Blockworks.
                    </P>
                </FTNT>
                <P>
                    The Exchange also believes the proposed position and exercise limits are appropriate given position limits for Ethereum futures. For example, the Chicago Mercantile Exchange (“CME”) imposes a position limit of 8,000 futures (for the initial spot month) on its Ethereum futures contract.
                    <SU>41</SU>
                    <FTREF/>
                     On December 23, 2024, CME Dec 24 Ethereum Futures settled at approximately $3,418.00. A position of 8,000 CME Ethereum futures, therefore, would have a notional value of $1,367,200,000. A position of approximately 397,789 option contracts would equate to that notional value.
                    <SU>42</SU>
                    <FTREF/>
                     This approximate number of option contracts for the Fidelity Fund that equate to the notional value of CME Ethereum futures is significantly higher than the proposed limit of 25,000 options contract for the Fidelity Fund option. The fact that many options ultimately expire out-of-the-money and thus are not exercised for shares of the underlying, while the delta of a Ethereum Future is 1, further demonstrates how conservative the proposed limit of 25,000 options 
                    <PRTPAGE P="16378"/>
                    contracts are for the Fidelity Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 349 (description of CME Ether Futures) and Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices. Each CME Ethereum futures contract is valued at 50 Ethereum as defined by the CME CF Ether Reference Rate (“BRR”). 
                        <E T="03">See</E>
                         CME Rule 35001.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         The notional value of the futures is calculated as follows: 8,000 futures × 50 (the futures multiplier) × $3,418 (the price of one future) = $1,367,200,000. The number of option contracts that equates to that notional value is calculated as follows: $1,367,200,000/notional value of one option contract ($34.37 (share price of Fidelity Fund) × 100 (option multiplier)) = 397,789 option contracts.
                    </P>
                </FTNT>
                <P>
                    The Exchange notes, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>43</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>44</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. Considering CME's position limits on futures for Ethereum, the Exchange believes that that the proposed same side position limits are more than appropriate for Fidelity Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>The Exchange believes the proposed position and exercise limits will have no material impact to the supply of Ethereum. For example, consider again the proposed position limit of 25,000 option contracts for the Fidelity Fund option. As noted above, a position limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the Fidelity Fund (if that market participant exercised all its options). As of December 23, 2024, the Fidelity Fund had 41,700,000 shares outstanding. This means that the approximate number of market participants that could hold the maximum of 25,000 same side positions in the Fidelity Fund that would equate to the number of shares outstanding of that Fund is 16.</P>
                <P>This means if 16 market participants had 25,000 same side positions in Fidelity Fund options, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. The Exchange believes it is highly unlikely for such an event to occur; however, even if either such event did occur, the Exchange would not expect the Fidelity Fund to be under stress because such an event would merely induce the creation of more shares through the trust's creation and redemption process.</P>
                <P>
                    As of December 23, 2024, the global supply of Ethereum was approximately 120,000,000, and the price of one Ethereum coin was approximately $3,418.00,
                    <SU>45</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $419.31 billion. Based on the $34.37 price of a Fidelity Fund share on December 23, 2024, a market participant could have redeemed one Ethereum for approximately 99 Fidelity Fund shares. Another 11,880,000,000 Fidelity Fund shares could be created before the then-circulating global supply of Ethereum was exhausted. As a result, 4,752 market participants would have to simultaneously exercise 25,000 same side positions in Fidelity Fund options to receive shares of the Fidelity Fund holding the entire global supply of Ethereum. Unlike the Fidelity Fund, the number of shares that corporations may issue is limited. However, like corporations, which authorize additional shares, repurchase shares, or split their shares, the Fidelity Fund may create, redeem, or split shares in response to demand. Additionally, the supply of Ethereum is unlimited.
                    <SU>46</SU>
                    <FTREF/>
                     The current supply of Ethereum is larger than the available supply of most securities.
                    <SU>47</SU>
                    <FTREF/>
                     Given the significant unlikelihood of any of these events ever occurring, the Exchange does not believe options on the Fidelity Fund should be subject to position and exercise limits even lower than those proposed (which are already equal to the lowest available limit for equity options in the industry) to protect the supply of Ethereum.
                </P>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See</E>
                         Ethereum Price (ETH), Market Cap, Price Today &amp; Chart History—Blockworks.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Ethereum Price (ETH), Market Cap, Price Today &amp; Chart History—Blockworks; 
                        <E T="03">see also</E>
                         Amendment No. 5 to Form S-1 Registration Statement No. 333-278249, Fidelity Fund, filed July 17, 2024, at 17 (noting that approximately 1,700 Ethereum are issued per day, subject to various factors); and Amendment No. 3 to Form S-1 Registration Statement No. 333-257474, ARK 21 Fund, filed May 10, 2024, at 15-16 (noting that approximately 1,700 Ethereum are issued per day, subject to various factors).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         The market capitalization of Ethereum would rank in the top 25 among securities. 
                        <E T="03">See https://companiesmarketcap.com/usa/largest-companies-in-the-usa-by-market-cap/.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange believes the available supply of Ethereum is not relevant to the determination of position and exercise limits for options overlying the Fidelity Fund.
                    <SU>48</SU>
                    <FTREF/>
                     Position and exercise limits are not a tool that should be used to address a potential limited supply of the underlying of the instrument underlying the option (in this case, the Ethereum being held within the Fidelity Fund). Position and exercise limits do not limit the total number of options that may be held, but rather they limit the number of positions a single customer may hold or exercise at one time.
                    <SU>49</SU>
                    <FTREF/>
                     “Since the inception of standardized options trading, the options exchanges have had rules imposing limits on the aggregate number of options contracts that a member or customer could hold or exercise.” 
                    <SU>50</SU>
                    <FTREF/>
                     Position and exercise limit rules are intended “to prevent the establishment of options positions that can be used or might create incentives to manipulate or disrupt the underlying market so as to benefit the options position. In particular, position and exercise limits are designed to minimize the potential for mini-manipulations and for corners or squeezes of the underlying market. In addition, such limits serve to reduce the possibility for disruption of the options market itself, especially in illiquid options classes.” 
                    <SU>51</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         The Exchange is unaware of any proposed rule change related to position and exercise limits for any equity option (including commodity ETF options) for which the Commission required consideration of whether the available supply of an underlying (whether it be a corporate stock or an ETF) or the contents of an ETF (commodity or otherwise) should be considered when an exchange proposed to establish those limits, other than recently with respect to ETFs that hold Bitcoin. 
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 57894 (May 30, 2008), 73 FR 32061 (June 5, 2008) (SR-CBOE-2005-11) (approval order in which the Commission stated that the “listing and trading of Gold Trust Options will be subject to the exchanges' rules pertaining to position and exercise limits and margin”); 
                        <E T="03">compare to</E>
                         Bitcoin ETF Option Approval. The Exchange notes when the Commission approved the filing to list options on an ETF holding gold, filing, the position limits in Cboe Options Rule 8.30 were the same as they are today. For reference, the current position and exercise limits for options on SPDR Gold Shares ETF (“GLD”) and options on iShares Silver Trust (“SLV”) are 250,000 contracts, or 10 times that proposed position and exercise limit for the Fidelity Fund options.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         For example, suppose an option has a position limit of 25,000 option contracts and there are a total of 10 investors trading that option. If all 10 investors max out their positions, that would result in 250,000 option contracts outstanding at that time. However, suppose 10 more investors decide to begin trading that option and also max out their positions. This would result in 500,000 option contracts outstanding at that time. An increase in the number of investors could cause an increase in outstanding options even if position limits remain unchanged.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <PRTPAGE P="16379"/>
                <P>
                    The Exchange notes that a Registration Statement on Form S-1 was filed with the Commission for the Fidelity Fund, which described the supply of Ethereum and the potential limits to that supply.
                    <SU>52</SU>
                    <FTREF/>
                     The Registration Statement permits an unlimited number of shares of the Fidelity Fund to be created. Further, the Commission approved the listing and trading of shares of the Fidelity Fund, which approval did not comment on the sufficient supply of Ethereum or address whether there was a risk that permitting an unlimited number of shares for the Fidelity Fund would impact the supply of Ethereum.
                    <SU>53</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the Commission had ample time and opportunity to consider whether the supply of Ethereum was sufficient to permit the creation of unlimited Fidelity Fund shares, and does not believe considering this supply with respect to the establishment of position and exercise limits is appropriate given its lack of relevance to the purpose of position and exercise limits. However, given the significant size of the Ethereum supply, the proposed positions limit is more than sufficient to protect investors and the market.
                </P>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 5 to Form S-1 Registration Statement No. 333-278249, Fidelity Fund, filed July 17, 2024, at 17.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>
                    Based on the above information demonstrating, among other things, that the Fidelity Fund is characterized by a substantial number of outstanding shares that are actively traded and widely held, the Exchange believes the proposed position and exercise limits are extremely conservative compared to those of ETF options with similar market characteristics. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying as well as the Ethereum market.
                    <SU>54</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <P>The Exchange represents that it has the necessary systems capacity to support the new Fidelity Fund options. As discussed above, 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 Fund Share options, including Fidelity Fund options.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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 options on the Fidelity Fund will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. The Exchange Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Fidelity Fund options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange. Also, and as stated above, the Commission has approved the trading of options on other commodity-based Fund Shares.
                    <SU>55</SU>
                    <FTREF/>
                     Further, the Fidelity Fund would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other Fund Share for the Exchange to continue listing options on them.
                </P>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i)(4).
                    </P>
                </FTNT>
                <P>
                    The Exchange does not believe that the proposal to list and trade options on the Fidelity Fund 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 Fidelity Fund 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 the Fidelity Fund.
                    <SU>56</SU>
                    <FTREF/>
                     The Exchange notes that listing and trading Fidelity Fund 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.
                </P>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         As noted above, at least one other options exchange has amended its rules to list and trade options on the Fidelity Fund. 
                        <E T="03">See</E>
                         Cboe Approval Order.
                    </P>
                </FTNT>
                <P>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 Fidelity Fund 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received from Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received written comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>57</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>58</SU>
                    <FTREF/>
                     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 
                    <SU>59</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>60</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has waived the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>61</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. 
                    <PRTPAGE P="16380"/>
                    However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>62</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the Fidelity Fund.
                    <SU>63</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Fidelity Fund, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Fidelity Fund. The proposal also establishes position and exercise limits for options on the Fidelity Fund and provides information regarding the surveillance procedures that will apply to Fidelity Fund options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Fidelity Fund options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>64</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         
                        <E T="03">See supra</E>
                         note 6.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeBZX-2025-056 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeBZX-2025-056. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-CboeBZX-2025-056 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>65</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06510 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102832; File No. SR-MIAX-2025-19]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits To Allow the Exchange To List and Trade Options on the iShares Ethereum Trust</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 10, 2025, Miami International Securities Exchange, LLC (“MIAX” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) a 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.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits, to list and trade options on the iShares Ethereum Trust (the “Trust”).</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings,</E>
                     at MIAX's principal office, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>
                    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 
                    <PRTPAGE P="16381"/>
                    the most significant aspects of such statements.
                </P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits,
                    <SU>3</SU>
                    <FTREF/>
                     to allow the Exchange to list and trade options on the Trust, designating it as appropriate for options trading on the Exchange.
                    <SU>4</SU>
                    <FTREF/>
                     This is a competitive filing based on a similar proposal submitted by Nasdaq ISE, LLC (“ISE”), which was approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>5</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         The Exchange notes that its affiliate options exchanges, MIAX PEARL, LLC (“MIAX Pearl”) and MIAX Sapphire, LLC (“MIAX Sapphire”), submitted (or will submit) substantively similar proposals. The Exchange notes that all the rules of Chapter III of MIAX, including Exchange Rules 307 and 309, are incorporated by reference into the MIAX Pearl and MIAX Sapphire rulebooks. The Exchange also notes that all of the rules of Chapter III of MIAX, including Exchange Rules 307 and 309, and the rules of Chapter IV of MIAX, including Exchange Rule 402, are incorporated by reference into the MIAX Emerald, LLC (“MIAX Emerald”) rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         See Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; 
                        <E T="03">and</E>
                         SRCboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ethereum ETP Approval Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102798 (April 9, 2025) (Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on the iShares Ethereum Trust) (SR-ISE-2024-35) (“ISE Ether Approval Order”).
                    </P>
                </FTNT>
                <P>Current Exchange Rule 402(i)(4) provides that securities deemed appropriate for options trading include shares or other securities (“Exchange Traded Fund Shares” or “ETFs”) that are traded on a national securities exchange and are defined as “NMS stock” under Rule 600 of Regulation NMS, and that meet specified criteria enumerated in the rule. Subparagraph (4) of Exchange Rule 402(i) provides that such shares or other securities:</P>
                <EXTRACT>
                    <P>(4) are issued by the SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Silver ETF Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Palladium ETF Trust, the Aberdeen Standard Platinum ETF Trust, the Goldman Sachs Physical Gold ETF, the Sprott Physical Gold Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, or the ARK 21 Shares Bitcoin ETF . . .</P>
                </EXTRACT>
                <P>
                    In addition to the aforementioned requirements, Exchange Rule 402(i)(5)(i)(A) or (B) must be met to list options on ETFs.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         Exchange Rule 402(i)(5)(i)(A) or (B) states that the Exchange-Traded Fund Shares either (i) meet the criteria and guidelines set forth in paragraphs (a) and (b) described herein; or (ii) the Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares, all as described in the Exchange-Traded Fund Shares' prospectus.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposal</HD>
                <P>
                    The Exchange proposes to amend Exchange Rule 402(i)(4) to expand the list of securities that are appropriate for options trading on the Exchange to include the Trust.
                    <SU>7</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Specifically, the Exchange proposes to amend Exchange Rule 402(i)(4) to include the name of the Trust to enable options to be listed on the Trust on the Exchange.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">
                    Description of the Trust 
                    <SU>8</SU>
                    <FTREF/>
                </HD>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         SR-NASDAQ-2023-045 for a complete description of the Trust.
                    </P>
                </FTNT>
                <P>The shares are issued by the Trust, a Delaware statutory trust. The Trust will operate pursuant to a trust agreement (the “Trust Agreement”) between the Sponsor, BlackRock Fund Advisors (the “Trustee”) as the trustee of the Trust and will appoint Wilmington Trust, National Association, as Delaware Trustee of the Trust (the “Delaware Trustee”) by such time that the Registration Statement is effective. The Trust issues shares representing fractional undivided beneficial interests in its net assets. The assets of the Trust will consist only of Ether (“Ether” or “Ethereum”) held by a custodian on behalf of the Trust, except under limited circumstances when transferred through the Trust's prime broker temporarily (described below), and cash. Neither the Trust, nor the Sponsor, nor the Ether Custodian (as defined below), nor any other person associated with the Trust will, directly or indirectly, engage in action where any portion of the Trust's Ether becomes subject to the Ethereum proof-of-stake validation or is used to earn additional Ether or generate income or other earnings. Coinbase Custody Trust Company, LLC (the “Ether Custodian”), is the custodian for the Trust's Ether holdings, and maintains a custody account for the Trust (“Custody Account”); Coinbase, Inc. (the “Prime Execution Agent”), an affiliate of the Ether Custodian, is the prime broker for the Trust and maintains a trading account for the Trust (“Trading Account”); and The Bank of New York Mellon is the custodian for the Trust's cash holdings (the “Cash Custodian” and together with the Ether Custodian, the “Custodians”) and the administrator of the Trust (the “Trust Administrator”). Under the Trust Agreement, the Trustee may delegate all or a portion of its duties to any agent, and has delegated the bulk of the day-to-day responsibilities to the Trust Administrator and certain other administrative and recordkeeping functions to its affiliates and other agents. The Trust is not an investment company registered under the Investment Company Act of 1940, as amended.</P>
                <P>The investment objective of the Trust is to reflect generally the performance of the price of Ether. The Trust seeks to reflect such performance before payment of the Trust's expenses and liabilities. The Shares are intended to constitute a simple means of making an investment similar to an investment in Ether through the public securities market rather than by acquiring, holding and trading Ether directly on a peer-to-peer or other basis or via a digital asset platform. The Shares have been designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in Ether, while at the same time having an intrinsic value that reflects, at any given time, the investment exposure to the Ether owned by the Trust at such time, less the Trust's expenses and liabilities. Although the Shares are not the exact equivalent of a direct investment in Ether, they provide investors with an alternative method of achieving investment exposure to Ether through the public securities market, which may be more familiar to them.</P>
                <HD SOURCE="HD3">Custody of the Trust's Ether and Creation and Redemption</HD>
                <P>
                    An investment in the shares is backed by Ether held by the Ether Custodian on behalf of the Trust. All of the Trust's Ether will be held in the Custody Account, other than the Trust's Ether which is temporarily maintained in the Trading Account under limited circumstances, 
                    <E T="03">i.e.,</E>
                     in connection with 
                    <PRTPAGE P="16382"/>
                    creation and redemption Basket 
                    <SU>9</SU>
                    <FTREF/>
                     activity or sales of Ether deducted from the Trust's holdings in payment of Trust expenses or the Sponsor's fee (or, in extraordinary circumstances, upon liquidation of the Trust). The Custody Account includes all of the Trust's Ether held at the Ether Custodian, but does not include the Trust's Ether temporarily maintained at the Prime Execution Agent in the Trading Account from time to time. The Ether Custodian will keep all of the private keys associated with the Trust's Ether held in the Custody Account in “cold storage”.
                    <SU>10</SU>
                    <FTREF/>
                     The hardware, software, systems, and procedures of the Ether Custodian may not be available or cost effective for many investors to access directly.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The Trust issues and redeems Shares only in blocks of 40,000 or integral multiples thereof. A block of 40,000 shares is called a “Basket.” These transactions take place in exchange for ether.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         The term “cold storage” refers to a safeguarding method by which the private keys corresponding to the Trust's ether are generated and stored in an offline manner, subject to layers of procedures designed to enhance security. Private keys are generated by the Ether Custodian in offline computers that are not connected to the internet so that they are more resistant to being hacked.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot Ether as well as a hedging vehicle to meet their investment needs in connection with Ether products and positions. Similar to other commodity ETFs in which options may be listed on the Exchange (
                    <E T="03">e.g.,</E>
                     the SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Physical Gold Trust, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, or the ARK 21Shares Bitcoin ETF),
                    <SU>11</SU>
                    <FTREF/>
                     the proposed ETF is a trust that essentially offers the same objectives and benefits to investors.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>Options on the Trust will trade in the same manner as any other ETF options on the Exchange. 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 (including as proposed herein), margin requirements, customer accounts and trading halt procedures will apply to the listing and trading of options on the Trust on the Exchange. Today, these rules apply to options on the various commodities ETFs deemed appropriate for options trading on the Exchange pursuant to current Exchange Rule 402(i)(4).</P>
                <P>The Exchange's initial listing standards for ETFs on which options may be listed and traded on the Exchange will apply to the Trust. The initial listing standard as set forth in Exchange Rule 402(a) provides that</P>
                <EXTRACT>
                    <P>Underlying securities with respect to which put or call options contracts are approved for listing and trading on the Exchange must meet the following criteria: (1) the security must be registered and be an “NMS stock” as defined in Rule 600 of Regulation NMS under the Exchange Act; and (2) the security shall be characterized by a substantial number of outstanding shares that are widely held and actively traded.</P>
                </EXTRACT>
                <P>Pursuant to Exchange Rule 402, ETFs on which options may be listed and traded must satisfy the listing standards set forth in Exchange Rule 402(5). Specifically, the Trust must:</P>
                <P>
                    (1) meet the criteria and standards set forth in Exchange Rule 402(a) or 402(b),
                    <SU>12</SU>
                    <FTREF/>
                     or
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Subparagraphs a. and b. of Exchange Rule 402 provide for guidelines to be used by the Exchange when evaluating potential underlying securities for Exchange option transactions.
                    </P>
                </FTNT>
                <P>(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.</P>
                <P>
                    Options on the Trust will also be subject to the Exchange's continued listing standards set forth in Exchange Rule 403(g). Specifically, options approved for trading pursuant to Exchange Rule 402(i) will not 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 cease to be an NMS stock or the ETFs, are delisted from trading pursuant to Exchange Rule 403(b)(4), or the ETFs are halted or suspended from trading in their primary market.
                    <SU>13</SU>
                    <FTREF/>
                     In addition, the Exchange shall consider the suspension of opening transactions in any series of options of the class covering ETFs in any of the following circumstances:
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 403(g).
                    </P>
                </FTNT>
                <P>
                    (1) in the case of options covering ETFs approved for trading under Exchange Rule 402(i)(5)(i)(A), in accordance with the terms of paragraphs (b)(1), (2), and (3) of Exchange Rule 403; 
                    <SU>14</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         Exchange Rules 403(b)(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 Act.
                    </P>
                </FTNT>
                <P>(2) in the case of options covering ETFs approved for trading under Exchange Rule 402(i)(5)(i)(B), 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;</P>
                <P>(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 ETFs are based is no longer calculated or available; or</P>
                <P>(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.</P>
                <P>
                    Options on the Trust would be physically settled contracts with American-style exercise.
                    <SU>15</SU>
                    <FTREF/>
                     Consistent with current Exchange Rule 404, 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 the Trust 
                    <SU>16</SU>
                    <FTREF/>
                     at the commencement of trading 
                    <PRTPAGE P="16383"/>
                    on the Exchange and may also list series of options on the Trust for trading on a weekly,
                    <SU>17</SU>
                    <FTREF/>
                     monthly,
                    <SU>18</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>19</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) that expire from 12 to 39 months from the time they are listed.
                    <SU>20</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 401, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(b). The monthly expirations are subject to certain listing criteria for underlying securities described within Exchange Rule 404 and its Interpretations and Policies. 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 
                        <PRTPAGE/>
                        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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Exchange Rule 404(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 404(e), 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretations and Policies .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretations and Policies .13.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretations and Policies .03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 406.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Exchange Rule 404, Interpretations and Policies .06, which governs strike prices of series of options on ETFs, the interval between strike prices of series of options on ETFs approved for options trading pursuant to Exchange Rule 402(i) shall be fixed at a price per share which is reasonably close to the price per share at which the underlying security is traded in the primary market at or about the same time such series of options is first open for trading on the Exchange, or at such intervals as may have been established on another options exchange prior to the initiation of trading on the Exchange. With respect to the Short Term Options Series or Weekly Program, during the month prior to expiration of an option class that is selected for the Short Term Option Series Program, the strike price intervals for the related non-Short Term Option (“Related non-Short Term Option”) shall be the same as the strike price intervals for the Short Term Option.
                    <SU>21</SU>
                    <FTREF/>
                     Specifically, the Exchange may open for trading Short Term Option Series at strike price intervals of (i) $0.50 or greater where the strike price is less than $100, and $1 or greater where the strike price is between $100 and $150 for all option classes that participate in the Short Term Options Series Program; (ii) $0.50 for option classes that trade in one dollar increments and are in the Short Term Option Series Program; or (iii) $2.50 or greater where the strike price is above $150.
                    <SU>22</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>23</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>24</SU>
                    <FTREF/>
                     and the $2.50 Strike Price Program.
                    <SU>25</SU>
                    <FTREF/>
                     Pursuant to Exchange Rule 510, where the price of a series of options on the Trust 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 
                    <SU>26</SU>
                    <FTREF/>
                     consistent with the minimum increments for options on other ETFs listed on the Exchange. Any and all new series of Trust options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Exchange Rules 404 and 510, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretations and Policies .02(e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .01.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 404(f).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 510.
                    </P>
                </FTNT>
                <P>Trust 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 (including as proposed herein), margin requirements, customer accounts and trading halt procedures will apply to the listing and trading of Trust options 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 402(i)(4).</P>
                <P>Position and exercise limits for options on ETFs, including options on the Trust, are determined pursuant to Exchange Rules 307 and 309, respectively. Position and exercise limits for ETF options vary according to the number of outstanding shares and the trading volumes of the underlying ETF over the past six months, where the largest in capitalization and the most frequently traded ETFs have an option position and exercise limits 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. Further, Exchange Rule 1502, which governs margin requirements applicable to trading on the Exchange, including options on ETFs, will also apply to the trading of the Trust options.</P>
                <P>Notwithstanding the position limits in Exchange Rule 307(d) and exercise limits in Exchange Rule 309, the Exchange proposes the position and exercise limits for the options on the Trust to be 25,000 contracts on the same side pursuant to proposed Interpretation and Policy .01 to Exchange Rule 307 and proposed Interpretation and Policy .01 to Exchange Rule 309.</P>
                <P>Position and exercise limits are designed to limit the number of options contracts traded on the Exchange in an underlying security that an investor, acting alone or in concert with others directly or indirectly, may control. These limits, which are described in Exchange Rules 307 and 309, are intended to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. Position and exercise limits must balance concerns regarding mitigating potential manipulation and the cost of inhibiting potential hedging activity that could be used for legitimate economic purposes.</P>
                <P>
                    In considering the appropriate position and exercise limits for the Trust options, the Exchange reviewed the data presented by ISE in its filing. ISE considered the Trust's market capitalization and average daily volume (“ADV”) against those of other underlying securities, as well as the proposed position and exercise limit in relation to other options.
                    <SU>27</SU>
                    <FTREF/>
                     In measuring the Trust against other securities, ISE aggregated market capitalization and volume data for securities that have defined position limits utilizing data from The Options Clearing Corporation (“OCC”).
                    <SU>28</SU>
                    <FTREF/>
                     ISE also considered the trading volume for the Trust in terms of daily and notional volumes during the period of time the Trust had been trading from July 23, 2024 through December 14, 2024. The average daily volume for this time period was 5,302,533 shares and the average notional volume for this time period was $127,825,276.00. The Trust had 93,352 shareholders.
                    <SU>29</SU>
                    <FTREF/>
                     ISE indicated both the average daily volume and the average notional volume experienced an 
                    <PRTPAGE P="16384"/>
                    uptick at launch (which can be typical for anticipated product launches) then levelled off for several months. Renewed growth in the cryptocurrency market caused increased growth beginning in early November 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         ISE represented these computations were based on OCC data from October 22, 2024, and that data displaying zero values in market capitalization or ADV were removed.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         ISE represented it obtained this number from Broadridge Financial Solutions, Inc. on December 19, 2024.
                    </P>
                </FTNT>
                <P>
                    ISE reviewed the market capitalization and ADV of 3,930 options on single stock securities excluding ETFs.
                    <SU>30</SU>
                    <FTREF/>
                     Next, ISE aggregated this data based on market capitalization and ADV and grouped option symbols by position limit utilizing statistical thresholds for ADV and market capitalization for each position limit category (
                    <E T="03">i.e.</E>
                     25,000, 50,000 to 65,000, 75,000, 100,000 to less than 250,000, 250,000 to less than 500,000, 500,000 to 1,000,000 and greater than 1,000,000). Exchange Rule 307 sets out position limits for various contracts. For example, like ISE, a 25,000 contract limit applies to those options having an underlying security that does not meet the requirements for a higher options contract limit. ISE indicated it performed this exercise to demonstrate the Trust's position limit relative to other options symbols in terms of market capitalization and ADV. For reference the market capitalization for the Trust was 1.16 billion 
                    <SU>31</SU>
                    <FTREF/>
                     with an ADV, for the preceding three months prior to October 22, 2024, of greater than 2.99 million shares. By comparison, other options symbols with similar market capitalization and ADV have a position limit of 50,000 contracts or 75,000 contracts.
                    <SU>32</SU>
                    <FTREF/>
                     From a 90-day ADV perspective, ISE reviewed statistics that indicated that the Trust had a 90-day ADV greater than each of the stocks in the 100,000 contracts to 249,000 contracts range. Therefore, the proposed 25,000 same side position and exercise limits for options on the Trust are conservative.
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         The Trust has one asset and therefore is not comparable to a broad based ETF where there are typically multiple components.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         ISE acquired this figure as of October 22, 2024. 
                        <E T="03">See https://www.ishares.com/us/products/337614/ishares-ethereum-trust-etf.</E>
                         The global supply of ether grows each day ether are minted.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         ISE determined the median market capitalization for 50,000 contracts was 788,000,000 million and the median market capitalization for 75,000 contracts was 1,037,000 billion. Further, placing the Trust at 50,000 contracts would rank it in the 59th percentile in market capitalization and placing the Trust at 75,000 contracts would rank it in the 46th percentile in market capitalization.
                    </P>
                </FTNT>
                <P>
                    Second, ISE reviewed the Trust's data relative to the market capitalization of the entire Ether market in terms of exercise risk and availability of deliverables. Utilizing data as of October 22, 2024, there were 120,392,960 Ethereum in circulation. The price of Ethereum on October 22, 2024, was $2,620 per coin which equates to a market capitalization of greater than $315 billion US dollars. If a position limit of 25,000 options were considered (the position limit that would be typically assigned based upon data), the exercisable risk would represent less than 4.3524% of the outstanding shares of the Trust.
                    <SU>33</SU>
                    <FTREF/>
                     Since the Trust has a creation and redemption process managed through the issuer, additionally ISE compared the position limit sought to the total market capitalization of the entire Ethereum market. In this case, the exercisable risk represented by 25,000 options on the Trust would be less than 0.03% of the market capitalization of all outstanding Ether. Assuming a scenario where all 25,000 options on Ether shares were exercised given the proposed 25,000 per same side position limit, this would have a virtually unnoticed impact on the entire Ether market. This analysis by ISE demonstrates that the proposed 25,000 per same side position limit (and exercise limit) is conservative and appropriate for options on the Trust.
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         The 4.4% was calculated as follows: 2,500,000 (exercisable stock from position limit)/57,440,000 (shares outstanding on October 22, 2024) = 4.35237%.
                    </P>
                </FTNT>
                <P>
                    Third, ISE reviewed the proposed position limit by comparing it to position limits for derivative products regulated by the Commodity Futures Trading Commission (“CFTC”). While the CFTC, through the relevant Designated Contract Markets, only regulates options positions based upon delta equivalents (creating a less stringent standard), ISE examined equivalent Ether futures position limits. In particular, ISE looked at the CME Ethereum futures contract 
                    <SU>34</SU>
                    <FTREF/>
                     that has a position limit of 8,000 futures.
                    <SU>35</SU>
                    <FTREF/>
                     On October 22, 2024, CME Ether futures settled at $2,629. Using a contract multiplier of $50, a position limit of 8,000 futures would have a notional value $1.0516 billion (8,000 × $50 × $2,629). Using an October 22, 2024, share price of $19.91 for shares of the Trust, a futures position of 8,000 contracts, with a notional value of $1.0516 billion dollars would equate to an options position of 528,176 contracts ($1.0516 billion (notional value of 8,000 Ethereum futures contracts)/$19.91 (price of the Trust shares) = 52,817,679 (Trust shares)/100 (the number of shares represented by one options contract)) = 528,176 options contracts. Because substantial sums of any distributed options portfolio are likely to be out of the money on expiration, an options position limit equivalent to the CME position limit for Ethereum (considering that all options deltas are &lt; = 1.00) should be a bit higher than the CME implied 528,176 contract limit.
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         CME Ether Futures are described in Chapter 350 of CME's Rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook, Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <P>
                    The Exchange notes, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>36</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>37</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. Considering CME's position limits on futures for Ethereum, the Exchange believes that that the proposed same side position limits are more than appropriate for the Trust options.
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    In analyzing the proposed position limit for options on the Trust, ISE also considered the supply of Ether. Specifically, ISE examined the number of market participants with a position limit of 25,000 contracts that would need to exercise in unison to put the underlying asset under stress. In the case of options on Ether, the proposed 25,000 same side position and exercise limit effectively restricts a market participant from holding positions that could be exercised in excess of 2,500,000 shares of the Trust. Utilizing data from October 22, 2024, the Trust had 57,440,000 shares outstanding, therefore 22.976 participants would have to simultaneously exercise their position limits in order to create a scenario that may put the underlying asset (shares of the Trust) under stress. The Exchange notes that historically, from observation only, it appears that no 
                    <PRTPAGE P="16385"/>
                    more than five market participants holding options positions in any single security have exercised in unison in any option. As unlikely an occurrence as all market participants exercising their positions in unison would be, if it were to occur, it should be noted that even such an occurrence would not likely put the Trust under stress as economic incentives, would induce the creation of more shares through the ETF creation and redemption process.
                </P>
                <P>
                    Further, given that the current global supply of Ethereum, the underlying asset of the Trust, is 120,392,960 
                    <SU>38</SU>
                    <FTREF/>
                     coins and each Ethereum coin can currently be exchanged (Ethereum to USD and then USD to Trust shares) for 131.6 shares of the Trust another 15,843,979,598 shares of the Trust could be created by the underlying ETF. In addition as of October 22, 2024, a 25,000 contract position limit for options on the Trust would represent less than 4.3524% of the outstanding shares of the Trust (2,500,000 (position limit exercise)/57,440,000 (shares outstanding of the Trust on October 22, 2024)) = 4.3524%.
                    <SU>39</SU>
                    <FTREF/>
                     Also, as of October 22, 2024, a 25,000 contract position limit for options on the Trust would represent less than .01578% of the global supply of Ether (2,500,000 (position limit exercise)/120,392,960 (number of Ether) × 131.6 (Trust shares per Ether)) = .01578%.
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         This figure was acquired as of October 22, 2024. 
                        <E T="03">See https://www.ishares.com/us/products/337614/ishares-ethereum-trust-etf.</E>
                         The global supply of ether grows each day ether are minted.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See https://coinmarketcap.com/currencies/ethereum/.</E>
                    </P>
                </FTNT>
                <P>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 the Trust. Also the Exchange represents 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 the proposed Trust options.</P>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to the Trust options that it applies to the Exchange's other options products.
                    <SU>40</SU>
                    <FTREF/>
                     The Exchange's staff will have access to the surveillance programs conducted by its affiliate exchanges, MIAX Pearl and MIAX Sapphire with respect to trading in the shares of the underlying Ether Trust when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining surveillance data from MIAX Pearl and MIAX Sapphire, the Exchange will be able to obtain information regarding trading in the shares of the underlying Trust from Nasdaq, ISE, Cboe and other markets through ISG. In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”). Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>41</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         The surveillance program includes real-time patterns for price and volume movements and post-trade surveillance patterns (
                        <E T="03">e.g.,</E>
                         spoofing, marking the close, pinging, phishing).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>The underlying shares of spot Ethereum exchange-traded products (“ETPs”), including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs,</P>
                <EXTRACT>
                    <FP>
                        [e]ach Exchange has a comprehensive surveillance sharing agreement with the [Chicago Mercantile Exchange (“CME”)] via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME Ethereum futures market.
                        <SU>42</SU>
                        <FTREF/>
                    </FP>
                    <FTNT>
                        <P>
                            <SU>42</SU>
                             
                            <E T="03">See</E>
                             Ethereum ETP Approval Order, 89 FR at 46938.
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that in the Ethereum ETP Approval Order, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>43</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46939.
                    </P>
                </FTNT>
                <P>
                    In light of surveillance measures related to both options and futures as well as the Trust,
                    <SU>44</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust. Additionally, the Exchange may obtain trading information via ISG from other exchanges who are members or affiliates of the ISG.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>The Exchange has also analyzed its capacity and represents that it believes the Exchange and 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 the Trust up to the number of expirations currently permissible under the Rules. Because the proposal is limited to one class, the Exchange believes any additional traffic that may be generated from the introduction of the Trust options will be manageable.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Act and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>45</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>46</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in securities, to remove impediments to 
                    <PRTPAGE P="16386"/>
                    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) 
                    <SU>47</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>In particular, the Exchange believes that the proposal to list and trade options on the Trust 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 the Trust will provide investors with a greater opportunity to realize the benefits of utilizing options on an ETF based on spot Ethereum, including cost efficiencies and increased hedging strategies. The Exchange believes that offering options on a competitively priced ETF based on spot Ethereum will benefit investors by providing them with an additional, relatively lower-cost risk management tool, allowing them to manage, more easily, their positions and associated risks in their portfolios in connection with exposure to spot Ethereum. Today, the Exchange lists options on other commodity ETFs structured as a trust, which essentially offer the same objectives and benefits to investors, and for which the Exchange has not identified any issues with the continued listing and trading of options on those ETFs.</P>
                <P>The Exchange also believes the proposal to permit options on the Trust will remove impediments to and perfect the mechanism of a free and open market and a national market system, because options on the Trust will comply with current Exchange Rules. Options on the Trust 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 pursuant to Exchange Rule 402(i)(4). Additionally, as demonstrated above, the Trust is characterized by a substantial number of shares that are widely held and actively traded. Further, Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (as proposed herein), and margin requirements, will govern the listing and trading of options on the Trust.</P>
                <P>
                    The Exchange believes the proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits for options for the Trust is 25,000 contracts. These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given the Trust's market capitalization, ADV, and high number of outstanding shares. The proposed position limit, and exercise limit, is consistent with the Act as it addresses concerns related to manipulation and protection of investors because, as demonstrated above, the position limit (and exercise limit) is extremely conservative and more than appropriate given the Trust is actively traded. In support of the proposed position and exercise limits for options on the Trust are 25,000 contracts, the Exchange is citing the in depth analysis ISE did in its filing. As noted above, in the ISE Ether Approval Order, ISE considered the: (1) Trust's market capitalization and ADV, and proposed position limit in relation to other securities; (2) market capitalization of the entire Ethereum market in terms of exercise risk and availability of deliverables; (3) proposed position limit by comparing it to position limits for derivative products regulated by the CFTC; and (4) supply of Ethereum. Based on the Exchange's review of these analyses and the ISE Ether Approval Order, the Exchange believes that setting position and exercise limits for options on the Trust at 25,000 contracts is more than appropriate. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying as well as the Ethereum market.
                    <SU>48</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <P>
                    The Exchange represents that it has the necessary systems capacity to support the new Trust options. As discussed above, 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 Trust options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on the Trust. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on the Trust. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on the Trust in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Trust and, as appropriate, would review activity in the underlying Fund when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining surveillance data from MIAX Pearl and MIAX Sapphire, the Exchange will be able to obtain information from Nasdaq, ISE, Cboe and other markets through ISG. In addition, the Exchange has a Regulatory Services Agreement with FINRA. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>49</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such 
                        <PRTPAGE/>
                        members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <PRTPAGE P="16387"/>
                <P>The underlying shares of spot Ethereum ETPs, including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs:</P>
                <EXTRACT>
                    <P>
                        “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group.
                        <SU>50</SU>
                        <FTREF/>
                         This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                        <SU>51</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>50</SU>
                             
                            <E T="03">See</E>
                             Ethereum ETP Approval Order.
                        </P>
                    </FTNT>
                    <FTNT>
                        <P>
                            <SU>51</SU>
                             
                            <E T="03">Id.</E>
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that in the Ethereum ETP Approval Order, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>52</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46941.
                    </P>
                </FTNT>
                <P>
                    In light of surveillance measures related to both options and futures as well as the underlying Trust,
                    <SU>53</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Options on the Trust must satisfy the initial listing standards and continued listing standards currently in the Exchange Rules, applicable to options on all ETFs, including options on other commodity ETFs already deemed appropriate for options trading on the Exchange pursuant to Exchange Rule 402(i)(4).
                </P>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>Further, the Exchange represents that it will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust.</P>
                <P>
                    Finally, the Commission has previously approved the listing and trading of options on other cryptocurrency backed commodity ETFs structured as trusts.
                    <SU>54</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 101698 (November 21, 2024), 89 FR 93802 (November 27, 2024) (SR-MIAX-2024-40) (Self-Regulatory Organizations; MIAX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits To Allow the Exchange To List and Trade Options on the iShares Bitcoin Trust); 101716 November 22, 2024), 89 FR 94856 (November 29, 2024) (SR-MIAX-2024-42) (Self-Regulatory Organizations; MIAX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits To Allow the Exchange To List and Trade Options on the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, and the Bitwise Bitcoin ETF); 101717 (November 22, 2024), 89 FR 94828 (November 29, 2024) (SR-MIAX-2024-43) (Self-Regulatory Organizations; MIAX Exchange LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, Exchange Rule 307, Position Limits, and Exchange Rule 309, Exercise Limits To Allow the Exchange To List and Trade Options on the Fidelity Wise Origin Bitcoin Fund (the “Fidelity Fund”) and the ARK 21Shares Bitcoin ETF (the “ARK 21 Fund”)).
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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. In this regard and as indicated above, the Exchange notes that the rule change is being proposed as a competitive response to the filing submitted by ISE.
                    <SU>55</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <P>
                    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 options on the Trust will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. Moreover, options on the Trust will be subject to Exchange Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (including as proposed to modify herein), and margin requirements. Also, and as stated above, the Exchange already lists options on other cryptocurrency backed commodity ETFs structured as trusts.
                    <SU>56</SU>
                    <FTREF/>
                     Further, the Trust would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other ETF for the Exchange to continue listing options on it.
                </P>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         
                        <E T="03">See</E>
                         Exchange Rule 402(i)(4).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposal to list and trade options on the Trust 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 the Trust 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 Trust. The Exchange notes that listing and trading Trust 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.</P>
                <P>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 the Trust 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>Written comments were neither solicited nor received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>57</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>58</SU>
                    <FTREF/>
                     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 
                    <PRTPAGE P="16388"/>
                    19(b)(3)(A)(iii) of the Act 
                    <SU>59</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>60</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has waived the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>61</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>62</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing and trading of options on the iShares Ethereum Trust (the “Trust”).
                    <SU>63</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Trust, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Trust. The proposal also establishes position and exercise limits for options on the Trust and provides information regarding the surveillance procedures that will apply to Trust options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Trust options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>64</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         
                        <E T="03">See supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">http://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-MIAX-2025-19 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-MIAX-2025-19. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-MIAX-2025-19 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>65</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>65</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06522 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102823; File No. SR-ISE-2025-11]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules To Allow the Exchange To List Options on the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 9, 2025, Nasdaq ISE, LLC (“ISE” or “Exchange”) filed with the Securities and Exchange Commission (“SEC” or “Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend Options 4, Section 3, Criteria for Underlying Securities, to list and trade options on the (1) Fidelity Ethereum Fund (the “Fidelity Fund”); (2) Bitwise Ethereum ETF (“Bitwise Fund” or “ETHW”); (3) the Grayscale Ethereum Trust (“Grayscale Fund” or “ETHE”); (4) and Grayscale Ethereum Mini Trust (“Grayscale Mini Fund” or “ETH”).</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://listingcenter.nasdaq.com/rulebook/ise/rulefilings,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                    <PRTPAGE P="16389"/>
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Options 4, Section 3, Criteria for Underlying Securities, to allow the Exchange to list and trade options on the (1) Fidelity Ethereum Fund (the “Fidelity Fund”); (2) Bitwise Ethereum ETF (“Bitwise Fund” or “ETHW”); (3) the Grayscale Ethereum Trust (“Grayscale Fund” or “ETHE”); (4) and Grayscale Ethereum Mini Trust (“Grayscale Mini Fund” or “ETH”), (collectively “Ether Trusts”) as “Units” deemed appropriate for options trading on the Exchange.
                    <SU>5</SU>
                    <FTREF/>
                     Options on each Ether Trust were approved for trading on other options exchanges.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 101387 (October 18, 2024), 89 FR 84948 (October 24, 2024) (SR-Cboe-2024-035) (Notice of Filing of Amendment Nos. 2 and 3 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment Nos. 2 and 3, To Permit the Listing and Trading of Options on Ether Exchange-Traded Funds). 
                        <E T="03">See also</E>
                         Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEARCA-2023-70; SR-NYSEARCA-2024-31) (order approving the listing and trading of, among other Ether-Based Exchange-Traded Products, the Bitwise Ethereum ETF and the Grayscale Ethereum Trust (ETH)); and 100541 (July 17, 2024), 89 FR 59786 (July 23, 2024) (SRNYSEARCA-2024-44) (order approving the listing and trading of, among others, the Grayscale Ethereum Trust Mini).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 102797 (April 9, 2025) (SR-Cboe-2024-036) (not yet published) (“Cboe Proposal”); 102799 (April 9, 2025), (not yet published) (SR-NYSEAMER-2024-45) (“NYSE American Proposal”).
                    </P>
                </FTNT>
                <P>Currently, 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:</P>
                <EXTRACT>
                    <P>(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</P>
                    <P>(ii) represent interests in a trust or similar entity that holds a specified non-U.S. currency or currencies deposited with the trust when aggregated in some specified minimum number may be surrendered to the trust or similar entity 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</P>
                    <P>(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</P>
                    <P>(iv) represent interests in the SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, the Aberdeen Standard Physical Gold Trust, or the iShares Ether Trust or</P>
                    <P>(v) represents an interest in a registered investment company (“Investment Company”) organized as an open-end management company or similar entity, that invests in a portfolio of securities selected by the Investment Company's investment adviser consistent with the Investment Company's investment objectives and policies, which is issued in a specified aggregate minimum number in return for a deposit of a specified portfolio of securities and/or a cash amount with a value equal to the next determined net asset value (“NAV”), and when aggregated in the same specified minimum number, may be redeemed at a holder's request, which holder will be paid a specified portfolio of securities and/or cash with a value equal to the next determined NAV (“Managed Fund Share”).</P>
                </EXTRACT>
                <P>
                    In addition to the aforementioned requirements, Options 4, Section 3(h)(1) and (2) must be met to list options on ETFs.
                    <SU>7</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Options 4, Section 3(h)(1) and (2) state that the Exchange-Traded Fund Shares either (i) meet the criteria and guidelines set forth in paragraphs (a) and (b) described herein; or (ii) the Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares, all as described in the Exchange-Traded Fund Shares' prospectus. Also, the Exchange-Traded Fund Shares based on international or global indexes, or portfolios that include non-U.S. securities, shall meet the criteria in Options 4, Section 3(h)(2)(A)-(F).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Proposal</HD>
                <P>
                    The Exchange proposes to expand the list of ETFs that are appropriate for options trading on the Exchange in Options 3, Section 4(h)(iv) to include the Ether Trusts.
                    <SU>8</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Specifically, the Exchange proposes to amend Options 3, Section 4(h)(iv) to include the name of each Ether Trust to enable options to be listed on the Ether Trusts on the Exchange.
                    </P>
                </FTNT>
                <P>
                    The Ether Trusts are Ether-backed commodity ETFs structured as trusts. Similar to any Unit currently deemed appropriate for options trading under Options 3, Section 4(h), the investment objective of each Ether Trust is for its shares to reflect the performance of Ether (less the expenses of the trust's operations), offering investors an opportunity to gain exposure to Ether without the complexities of Ether delivery. As is the case for Units currently deemed appropriate for options trading, a Ether Trust's shares represent units of fractional undivided beneficial interest in the trust, the assets of which consist principally of Ether and are designed to track Ether or the performance of the price of Ether and offer access to the Ether market.
                    <SU>9</SU>
                    <FTREF/>
                     The Ether Trusts provide investors with cost-efficient alternatives that allow a level of participation in the Ether market through the securities market. The primary substantive difference between Ether Trusts and Units currently deemed appropriate for options trading are that Units may hold securities, certain financial instruments, and specified precious metals (which are deemed commodities), while Ether Trusts hold Ether (which is also deemed a commodity).
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The trust may include minimal cash.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes each Ether Trust satisfies the Exchange's initial 
                    <PRTPAGE P="16390"/>
                    listing standards for Units on which the Exchange may list options. Specifically, each Ether Trust satisfies the initial listing standards set forth in Options 3, Section 4(h), as is the case for other Units on which the Exchange lists options (including trusts that hold commodities). Currently, Options 4, Section 3(h)(1) and (2) requires that Units must either (i) meet the criteria and guidelines set forth in paragraphs (a) and (b) described herein; or (ii) be 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 Exchange-Traded Fund Shares 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 Exchange-Traded Fund Shares, all as described in the Exchange-Traded Fund Shares' prospectus. Each Ether Trust Fund satisfies Options 4, Section 3(h)(1) and (2), as each is subject to this creation and redemption process.
                </P>
                <P>
                    While not required by the Rules for purposes of options listings, the Exchange believes each Ether Trust satisfies the criteria and guidelines set forth in Options 4, Section 3(b).
                    <FTREF/>
                    <SU>10</SU>
                     Options 4, Section 3(a), a security (which includes a Unit) 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 Securities Exchange Act of 1934, as amended (the “Act”)), and be characterized by a substantial number of outstanding shares that are widely held and actively traded.
                    <SU>11</SU>
                    <FTREF/>
                     Each Ether Trust is an NMS Stock as defined in Rule 600 of Regulation NMS under the Act.
                    <SU>12</SU>
                    <FTREF/>
                     The Exchange believes each Ether Trust is characterized by a substantial number of outstanding shares that are widely held and actively traded.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         ISE Options 4, Section 3(b) states that, in addition, the Exchange shall from time to time establish guidelines to be considered in evaluating potential underlying securities for Exchange options transactions. There are many relevant factors which must be considered in arriving at such a determination, and the fact that a particular security may meet the guidelines established by the Exchange does not necessarily mean that it will be selected as an underlying security. Further, in exceptional circumstances an underlying security may be selected by the Exchange even though it does not meet all of the guidelines. The Exchange may also give consideration to maintaining diversity among various industries and issuers in selecting underlying securities. Notwithstanding the forgoing, however, absent exceptional circumstances, an underlying security will not be selected unless: (1) There are a minimum of seven (7) million shares of the underlying security which are owned by persons other than those required to report their stock holdings under Section 16(a) of the Exchange Act; (2) There are a minimum of 2,000 holders of the underlying security; (3) The issuer is in compliance with any applicable requirements of the Exchange Act; (4) Trading volume (in all markets in which the underlying security is traded) has been at least 2,400,000 shares in the preceding twelve (12) months; (5) Either: (i) If the underlying security is a “covered security” as defined under Section 18(b)(1)(A) of the Securities Act of 1933: (A) the market price per share of the underlying security has been at least $3.00 for the previous three consecutive business days preceding the date on which the Exchange submits a certificate to the Clearing Corporation for listing and trading, as measured by the closing price reported in the primary market in which the underlying security is traded; however, (B) the requirements set forth in (5)(i)(A) will be waived during the three days following its initial public offering day for an underlying security having a market capitalization of at least $3 billion based upon the offering price of its initial public offering, and may be listed and traded starting on or after the second business day following the initial public offering day; or (ii) If the underlying security is not a “covered security,” the market price per share of the underlying security has been at least $7.50 for the majority of business days during the three calendar months preceding the date of selection, as measured by the lowest closing price reported in any market in which the underlying security traded on each of the subject days. Notwithstanding the requirements set forth in Paragraphs 1, 2, 4 and 5 above, the Exchange may list and trade an options contract if (i) the underlying security meets the guidelines for continued approval in Options 4, Section 4; and (ii) options on such underlying security are traded on at least one other registered national securities exchange.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Options 4, Section 3(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         An “NMS stock” means any NMS security other than an option, and an “NMS security” means any security or class of securities for which transaction reports are collected, processed, and made available pursuant to an effective transaction reporting plan (or an effective national market system plan for reporting transaction in listed options). 
                        <E T="03">See</E>
                         17 CFR 242.600(b)(64) (definition of “NMS security”) and (65) (definition of “NMS stock”).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Fidelity Fund</HD>
                <P>
                    Based on data filed in the Cboe Proposal, as of December 23, 2024, the Fidelity Fund had 41,700,000 shares outstanding, which is nearly six times more than the minimum number of shares of a corporate stock (
                    <E T="03">i.e.,</E>
                     7,000,000 shares) that is generally required to list options on that stock pursuant to Options 4, Section 3(b)(1). The Cboe Proposal noted that it believed that this demonstrates that the Fidelity Fund is characterized by a substantial number of outstanding shares. Further, the Cboe Proposal noted that as of November 26, 2024, there were 38,170 beneficial holders of shares of the Fidelity Fund, which is significantly more than 2,000 beneficial holders (approximately 19 times more), which is the minimum number of holders generally required for corporate stock in order to list options on that stock pursuant to Options 4, Section 3(b)(2). Therefore, the Cboe Proposal noted that it believed the shares of the Fidelity Fund were widely held and actively traded. Further, the Cboe Proposal noted that as of December 23, 2024, the total trading volume (by shares) and the approximate average daily volume (“ADV”) (in shares and notional) from July 23, 2024 (the date on which shares of the Fidelity Fund began trading) to December 23, 2024 for the Fidelity Fund was as follows:
                </P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s50,12C,15C">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Trading volumes
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(notional $)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">115,589,047</ENT>
                        <ENT>1,070,269</ENT>
                        <ENT>33,864,193</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The Cboe Proposal noted that, as demonstrated above, despite the fact that the Fidelity Fund has been trading for approximately five months as of December 23, 2024, its total trading volume as of that date was substantially higher than 2,400,000 shares (more than 48 times that amount), which is the minimum 12-month volume generally required for a corporate stock in order to list options on that security as set forth in ISE Options 4, Section 3(b). Additionally, as of December 23, 2024, the trading volume for the Fidelity Fund was in the top 5% of all ETFs that are currently trading. The Cboe Proposal noted that this data demonstrates the Fidelity Fund is characterized as having shares that are actively traded.</P>
                <PRTPAGE P="16391"/>
                <FP>Grayscale Fund, Grayscale Mini Fund or Bitwise Fund (“NYSE Ether Funds”)</FP>
                <P>The NYSE American Proposal noted that, as of November 29, 2024, the NYSE Ether Funds had the following number of shares outstanding (and corresponding market capitalization):</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,p7,7/8,i1" CDEF="s50,20,20">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">NYSE Ether Fund</CHED>
                        <CHED H="1">
                            Shares
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">
                            Market
                            <LI>capitalization</LI>
                            <LI>(11/29/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>$5,425,852,635</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>1,547,003,157</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>430,886,200</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    The NYSE American Proposal noted that, as shown above, each of the NYSE Ether Funds had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that the Exchange generally requires to list options on that stock pursuant to Options 4, Section 5(d).
                    <SU>13</SU>
                    <FTREF/>
                     The NYSE American Proposal stated that it believed this demonstrates that each NYSE Ether Fund is characterized by a substantial number of outstanding shares. The NYSE American Proposal provided the below table, noting that it contained information regarding the number of beneficial holders of the Ether Funds as of December 31, 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         NYSE American noted that on November 19, 2024, ETH underwent a reverse stock split, reducing the number of shares outstanding—and increasing the share price—tenfold.
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s25,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Ether Fund</CHED>
                        <CHED H="1">
                            Beneficial holders
                            <LI>(as of</LI>
                            <LI>12/31/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>112,320</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>17,396</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>5,992</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    The NYSE American Proposal noted that, as this table shows, each NYSE Ether Fund has significantly more than 2,000 beneficial holders (approximately 56, 9, and 3 times more, respectively), which is the minimum number of holders that is generally required for corporate stock in order to list options on that stock pursuant to pursuant to Options 4, Section 5(b)(2).
                    <SU>14</SU>
                    <FTREF/>
                     NYSE American noted that it believed that the shares of each NYSE Ether Fund are widely held and that, based on trading volume since the Funds began trading on July 23, 2024, shares of the NYSE Ether Funds are actively traded. In particular, the table below sets forth the total trading volume (by shares and notional) from the inception of trading through either November 29, 2024 (for ETHE and ETH) or December 31, 2024 (for ETHW). The NYSE American Proposal noted that, in addition, the below table illustrates the average daily volume (“ADV”) over the 30-day period of either October 29, 2024—through November 29, 2024 (for ETHE and ETH) or November 29, 2024—through December 31, 2024 (for ETHW).
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         The number of beneficial holders of ETH may have been impacted by the 10:1 reverse stock split, as investors with fewer than 10 shares would have received a cash payout. 
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31/24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,nj,tp0,p7,7/8,i1" CDEF="s100,14,16,12">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">NYSE Ether Fund</CHED>
                        <CHED H="1">
                            Trading volume
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Trading volume
                            <LI>(notional $)</LI>
                        </CHED>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>427,312,540</ENT>
                        <ENT>$10,289,781,199</ENT>
                        <ENT>4,237,811</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>172,400,020</ENT>
                        <ENT>4,614,428,230</ENT>
                        <ENT>3,065,796</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>44,477,060</ENT>
                        <ENT>959,491,343</ENT>
                        <ENT>291,627</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The NYSE American Proposal noted that, as demonstrated above, even though the NYSE Ether Funds have been trading for less than one year, the trading volume for each NYSE Ether Fund is substantially higher than 2,400,000 shares (roughly 178, 72, and 16 times that amount), which is the minimum 12-month volume that is generally required for a security in order to list options on that security as set forth in Options 4, Section 3(b)(4). The NYSE American Proposal noted that this data demonstrated that each NYSE Ether Fund was characterized by a substantial number of outstanding shares that are actively traded.</P>
                <P>
                    Options on the Ether Trusts will be subject to the Exchange's continued listing standards for options on ETFs set forth in Options 4, Section 4(g). 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 
                    <SU>16</SU>
                    <FTREF/>
                     or the ETFs are halted or suspended from trading on their primary market.
                    <SU>17</SU>
                    <FTREF/>
                     In addition, the Exchange shall consider the suspension of opening transactions in any series of options of the class covering ETFs in any of the following circumstances:
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Options 4, Section 4(g).
                    </P>
                </FTNT>
                <EXTRACT>
                    <P>(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;</P>
                    <P>(2) in the case of options covering Fund Shares approved pursuant to Options 4, Section 3(h)(A)(ii), 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;</P>
                    <P>(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</P>
                    <P>(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.</P>
                </EXTRACT>
                <PRTPAGE P="16392"/>
                <P>
                    Options on the Ether Trusts would be physically settled contracts with American-style exercise.
                    <SU>18</SU>
                    <FTREF/>
                     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 the Ether Trusts and may also list series of options on the Ether Trusts for trading on a weekly 
                    <SU>19</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>20</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series (“LEAPS”) 
                    <SU>21</SU>
                    <FTREF/>
                     that expire from twelve to thirty-nine from the time they are listed.
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         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. 
                        <E T="03">See also</E>
                         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: 
                        <E T="03">https://www.theocc.com/getmedia/9d3854cd-b782-450f-bcf7-33169b0576ce/occ_rules.pdf.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Supplementary .03 to Options 4, Section 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Supplementary .04 to Options 4, Section 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Options 4, Section 8.
                    </P>
                </FTNT>
                <P>
                    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 ETFs approved for options trading pursuant to Section 3(h) of Options 4 shall be fixed at a price per share which is reasonably close to the price per share at which the underlying security is traded in the primary market at or about the same time such series of options is first open for trading on the Exchange, or at such intervals as may have been established on another options exchange prior to the initiation of trading on the Exchange. With respect to the Short Term Options Series or Weekly Program, during the month prior to expiration of an option class that is selected for the Short Term Option Series Program, the strike price intervals for the related non-Short Term Option (“Related non-Short Term Option”) shall be the same as the strike price intervals for the Short Term Option.
                    <SU>22</SU>
                    <FTREF/>
                     Specifically, the Exchange may open for trading Short Term Option Series at strike price intervals of (i) $0.50 or greater where the strike price is less than $100, and $1 or greater where the strike price is between $100 and $150 for all option classes that participate in the Short Term Options Series Program; (ii) $0.50 for option classes that trade in one dollar increments and are in the Short Term Option Series Program; or (iii) $2.50 or greater where the strike price is above $150.
                    <SU>23</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>24</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>25</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>26</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>27</SU>
                    <FTREF/>
                     Options 3, Section 3 governs the minimum increment for bids and offers for both equity and index options. Pursuant to Options 3, Section 3, where the price of a series of options for the Ether Trusts 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 
                    <SU>28</SU>
                    <FTREF/>
                     consistent with the minimum increments for options on other ETFs listed on the Exchange. Any and all new series of options on the Ether Trusts 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.
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Supplementary Material .03(e) to Options 4, Section 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         
                        <E T="03">See</E>
                         Supplementary Material .01 to Options 4, Section 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See</E>
                         Supplementary Material .05 to Options 4, Section 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See</E>
                         Supplementary Material .02 to Options 4, Section 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See</E>
                         Supplementary Material .06 to Options 4, Section 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         Options that are eligible to participate in the Penny Interval Program have a minimum increment of $0.01 below $3.00 and $0.50 above $3.00. 
                        <E T="03">See</E>
                         Supplementary Material .01 to Options 3, Section 3.
                    </P>
                </FTNT>
                <P>Based on the foregoing and notwithstanding the position limits in Options 9, Section 13(d) and exercise limits in Options 9, Section 15(c), ISE proposes the position and exercise limits for the options on the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust to be 25,000 contracts on the same side pursuant to proposed Supplementary Material .01 to Options 9, Section 13 and proposed Supplementary Material .01 to Options 9, Section 15. Further, Exchange Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, and margin requirements, will govern the listing and trading of options on the Ether Trusts. The proposed position limit, and exercise limit, is consistent with the Act as it addresses concerns related to manipulation and protection of investors because the position limit (and exercise limit) is conservative and appropriate given the Ether Trusts are actively traded.</P>
                <HD SOURCE="HD3">Fidelity Fund</HD>
                <P>The Cboe Proposal noted that, with respect to the Fidelity Fund, Cboe determined these proposed position and exercise limits considering, among other things, the ADV (since trading of the Fidelity Fund began on July 23, 2024) and outstanding shares of the Fidelity Fund (which as discussed above demonstrate that the Fidelity Fund is widely held and actively traded and thus justify these conservatively proposed position limits), as set forth below, along with market capitalization (as of December 23, 2024):</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s25,15C,15C">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            ADV
                            <LI>(shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Outstanding
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Market
                            <LI>capitalization</LI>
                            <LI>($)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">1,070,269</ENT>
                        <ENT>41,700,000</ENT>
                        <ENT>1,433,229,000</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    Cboe then compared the number of outstanding shares of the Fidelity Fund to those of other ETFs. The Cboe Proposal stated that the approximate average position (and exercise limit) of ETF options with similar outstanding shares (as of December 31, 2024) was approximately 102,703 contracts, which is significantly higher (approximately 4 times) than the proposed position and exercise limit of 25,000 contracts for Fidelity Fund options.
                    <SU>29</SU>
                    <FTREF/>
                     The Cboe Proposal noted that, as discussed above, shares of the Fidelity Fund are actively held and widely traded: (1) the Fidelity Fund (as of December 23, 2024) had significantly more than 7,000,000 shares outstanding, which is the minimum number of shares of a corporate stock that is generally required to list options on that stock pursuant to Options 4, Section 3(ab)(1); (2) the Fidelity Fund (as of November 26, 2024) had significantly more than 2,000 beneficial holders, which is the minimum number of holders is generally required for corporate stock in order to list options 
                    <PRTPAGE P="16393"/>
                    on that stock pursuant to Options 4, Section 3(b)(2) and (3) the Fidelity Fund had a trading volume in the approximately five-month time period since it began trading substantially higher than 2,400,000 shares, which is the minimum 12-month volume is generally required for a security in order to list options on that security as set forth in Options 4, Section 3(b).
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         The position limits for those ETF options for which the underlying ETFs had similar outstanding shares were all 50,000 or above, and nearly half of them had position limits of 200,000 or 250,000 contracts.
                    </P>
                </FTNT>
                <P>The Cboe Proposal noted that with respect to outstanding shares, if a market participant held the maximum number of positions possible pursuant to the proposed position and exercise limits, the equivalent shares represented by the proposed position/exercise limit would represent approximately 6.0% of the 41,700,000 current outstanding shares of the Fidelity Fund. Therefore, Cboe noted that if a market participant held the maximum permissible options positions in Fidelity Fund options and exercised all of them at the same time, that market participant would control a small percentage of the outstanding shares of the Fidelity Fund.</P>
                <P>Options 9, Section 13(d), provides two methods of qualifying for a position limit tier above 25,000 option contracts. The first method is based on six-month trading volume in the underlying security, and the second method is based on slightly lower six-month trading volume and number of shares outstanding in the underlying security. An underlying stock or ETF that qualifies for method two based on trading volume and number of shares outstanding would be required to have the minimum number of outstanding shares as shown in middle column of the table below. The Cboe Proposal noted that the below table, which provides the equivalent shares of the position limits applicable to equity options, including ETFs, represents the percentages of the minimum number of outstanding shares that an underlying stock or ETF must have to qualify for that position limit (under the second method described above).</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s50,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">
                            Position/exercise limit
                            <LI>(in equivalent shares)</LI>
                        </CHED>
                        <CHED H="1">
                            Minimum
                            <LI>outstanding</LI>
                            <LI>shares</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage of
                            <LI>outstanding</LI>
                            <LI>shares</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">2,500,000</ENT>
                        <ENT>6,300,000</ENT>
                        <ENT>40.0</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">5,000,000</ENT>
                        <ENT>40,000,000</ENT>
                        <ENT>12.5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">7,500,000</ENT>
                        <ENT>120,000,000</ENT>
                        <ENT>6.3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">20,000,000</ENT>
                        <ENT>240,000,000</ENT>
                        <ENT>8.3</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">25,000,000</ENT>
                        <ENT>300,000,000</ENT>
                        <ENT>8.3</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    The equivalent shares represented by the proposed position and exercise limits for the Fidelity Fund as a percentage of outstanding shares of the Fidelity Fund is significantly lower than the percentage for the lowest possible position limit for equity options of 25,000, which is the position limit Cboe proposed for Fidelity Fund options.
                    <SU>30</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         As these percentages are based on the minimum number of outstanding shares an underlying security must have to qualify for the applicable position limit, these are the highest possible percentages that would apply to any option subject to that position and exercise limit. 6,300,000 is the minimum number of outstanding shares an underlying security must have for the Exchange to continue to list options on that security, so this would be the smallest number of outstanding shares permissible for any corporate option that would have a position limit of 25,000 contract. 
                        <E T="03">See</E>
                         Options 4, Section 5(d). This rule applies to corporate stock options but not ETF options, which currently have no requirement regarding outstanding shares of the underlying ETF for the Exchange to continue listing options on that ETF. Therefore, there may be ETF options trading for which the 25,000 contract position limit represents an even larger percentage of outstanding shares of the underlying ETF than set forth above.
                    </P>
                </FTNT>
                <P>
                    Further, Cboe noted that the proposed position and exercise limit for Fidelity Fund options is equal to the lowest position and exercise limits available in the options industry for equity options, are extremely conservative and more than appropriate given the market capitalization, average daily volume, and high number of outstanding shares of the Fidelity Fund. The Cboe Proposal stated that the proposed position and exercise limit for the Fidelity Fund is also equal to the position and exercise limits for ETFs that hold Bitcoin, as recently approved by the Commission.
                    <SU>31</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 101387 (October 18, 2024), 89 FR 84948 (October 24, 2024) (SR-CBOE-2024-035) (“Bitcoin ETF Option Approval”).
                    </P>
                </FTNT>
                <P>The Cboe Proposal concluded that all of the above information demonstrated that the proposed position and exercise limits for Fidelity Fund options are more than reasonable and appropriate. The trading volume, ADV, and outstanding shares of the Fidelity Fund demonstrate that its shares are actively traded and widely held, and proposed position and exercise limit is well below those of options on other ETFs with similar market characteristics. The proposed position and exercise limit would be the lowest position and exercise limit available for equity options in the industry, are extremely conservative, and, Cboe noted, are more than appropriate given the Fidelity Fund's market capitalization, ADV, and high number of outstanding shares.</P>
                <P>
                    Further, given that the issuer of the Fidelity Fund may create and redeem shares that represent an interest in Ethereum, the Cboe Proposal noted that it believed it is relevant to compare the size of a position limit to the market capitalization of the Ethereum market. The Cboe Proposal noted that, as of December 23, 2024, the global supply of Ethereum was approximately 120,000,000 coins, and the price of one Ethereum coin was approximately $3,494.25 
                    <SU>32</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $419.31 billion. The Cboe Proposal noted that in consideration of the proposed position and exercise limit of 25,000 option contracts for the Fidelity Fund option. Cboe noted that a position and exercise limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 of Fidelity Fund shares (if that market participant exercised all its options). The Cboe Proposal noted that using a share price of $34.37 on December 23, 2024, the value of 2,500,000 shares of the Fidelity Fund at that price is $85,925,000, and the approximate percentage of that value of the size of the Ethereum market is 0.02%. Therefore, Cboe noted, if a market participant with the maximum 25,000 same side contracts in Fidelity Fund options exercised all positions at one time, such an event would have no practical impact on the Ethereum market. Cboe noted that it also believed that the proposed position and exercise limits are appropriate given position limits for Ethereum futures. For example, Cboe noted, the Chicago Mercantile Exchange (“CME”) imposes a position limit of 8,000 futures (for the initial spot month) on its Ethereum 
                    <PRTPAGE P="16394"/>
                    futures contract.
                    <SU>33</SU>
                    <FTREF/>
                     The Cboe Proposal noted that, on December 23, 2024, CME Dec 24 Ethereum Futures settled at approximately $3,418.00. Cboe stated that a position of 8,000 CME Ethereum futures, therefore, would have a notional value of $1,367,200,000. A position of approximately 397,789 option contracts would equate to that notional value.
                    <SU>34</SU>
                    <FTREF/>
                     Cboe noted that this approximate number of option contracts for the Fidelity Fund that equate to the notional value of CME Ethereum futures is significantly higher than the proposed limit of 25,000 options contract for the Fidelity Fund option. The fact that many options ultimately expire out-of-the-money and thus are not exercised for shares of the underlying, while the delta of a Ethereum Future is 1, Cboe stated, further demonstrates how conservative the proposed limit of 25,000 options contracts are for the Fidelity Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         
                        <E T="03">See</E>
                         Ethereum Price (ETH), Market Cap, Price Today &amp; Chart History—Blockworks.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 349 (description of CME Ether Futures) and Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices. Each CME Ethereum futures contract is valued at 50 Ethereum as defined by the CME CF Ether Reference Rate (“BRR”). 
                        <E T="03">See</E>
                         CME Rule 35001.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         The notional value of the futures is calculated as follows: 8,000 futures × 50 (the futures multiplier) × $3,418 (the price of one future) = $1,367,200,000. The number of option contracts that equates to that notional value is calculated as follows: $1,367,200,000/notional value of one option contract ($34.37 (share price of Fidelity Fund) × 100 (option multiplier)) = 397,789 option contracts.
                    </P>
                </FTNT>
                <P>
                    The Cboe Proposal noted that, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>35</SU>
                    <FTREF/>
                     Therefore, Cboe noted that if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>36</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. The Cboe Proposal noted that, considering CME's position limits on futures for Ethereum, the Exchange believes that that the proposed same side position limits are more than appropriate for Fidelity Fund options. Cboe believed the proposed position and exercise limits for Fidelity Fund will have no material impact to the supply of Ethereum. The Cboe Proposal noted that, for example, consider again the proposed position limit of 25,000 option contracts for the Fidelity Fund option. As noted above, Cboe stated that a position limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the Fidelity Fund (if that market participant exercised all its options). The Cboe Proposal noted that as of December 23, 2024, the Fidelity Fund had 41,700,000 shares outstanding. Cboe stated that this means that the approximate number of market participants that could hold the maximum of 25,000 same side positions in the Fidelity Fund that would equate to the number of shares outstanding of that Fund is 16. This means if 16 market participants had 25,000 same side positions in Fidelity Fund options, each of them would have to simultaneously exercise all of those options to create a scenario that may put the underlying security under stress. Cboe noted that it believed it is highly unlikely for such an event to occur; however, even if either such event did occur, it would not expect the Fidelity Fund to be under stress because such an event would merely induce the creation of more shares through the trust's creation and redemption process.
                </P>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Cboe noted that as of December 23, 2024, the global supply of Ethereum was approximately 120,000,000, and the price of one Ethereum coin was approximately $3,418.00,
                    <SU>37</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $419.31 billion. The Cboe Proposal noted that based on the $34.37 price of a Fidelity Fund share on December 23, 2024, a market participant could have redeemed one Ethereum for approximately 99 Fidelity Fund shares. Cboe stated that another 11,880,000,000 Fidelity Fund shares could be created before the then-circulating global supply of Ethereum was exhausted. As a result, 4,752 market participants would have to simultaneously exercise 25,000 same side positions in Fidelity Fund options to receive shares of the Fidelity Fund holding the entire global supply of Ethereum. The Cboe Proposal noted that, unlike the Fidelity Fund, the number of shares that corporations may issue is limited. However, like corporations, which authorize additional shares, repurchase shares, or split their shares, the Fidelity Fund may create, redeem, or split shares in response to demand. Additionally, Cboe stated that the supply of Ethereum is unlimited.
                    <SU>38</SU>
                    <FTREF/>
                     Cboe provided that the current supply of Ethereum is larger than the available supply of most securities.
                    <SU>39</SU>
                    <FTREF/>
                     Given the significant unlikelihood of any of these events ever occurring, Cboe did not believe options on the Fidelity Fund should be subject to position and exercise limits even lower than those proposed (which are already equal to the lowest available limit for equity options in the industry) to protect the supply of Ethereum. Cboe believed that the available supply of Ethereum is not relevant to the determination of position and exercise limits for options overlying the Fidelity Fund.
                    <SU>40</SU>
                    <FTREF/>
                     Further, the Cboe Proposal noted that position and exercise limits are not a tool that should be used to address a potential limited supply of the underlying of the instrument underlying the option (in this case, the Ethereum being held within the Fidelity Fund). 
                    <PRTPAGE P="16395"/>
                    Cboe stated that position and exercise limits do not limit the total number of options that may be held, but rather they limit the number of positions a single customer may hold or exercise at one time.
                    <SU>41</SU>
                    <FTREF/>
                     Cboe noted that, “[s]ince the inception of standardized options trading, the options exchanges have had rules imposing limits on the aggregate number of options contracts that a member or customer could hold or exercise.” 
                    <SU>42</SU>
                    <FTREF/>
                     Further, Cboe noted that position and exercise limit rules are intended “to prevent the establishment of options positions that can be used or might create incentives to manipulate or disrupt the underlying market so as to benefit the options position. In particular, Cboe provided that position and exercise limits are designed to minimize the potential for mini-manipulations and for corners or squeezes of the underlying market. In addition, Cboe stated that such limits serve to reduce the possibility for disruption of the options market itself, especially in illiquid options classes.” 
                    <SU>43</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">See</E>
                         Ethereum Price (ETH), Market Cap, Price Today &amp; Chart History—Blockworks.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         
                        <E T="03">See</E>
                         Ethereum Price (ETH), Market Cap, Price Today &amp; Chart History—Blockworks; see also Amendment No. 5 to Form S-1 Registration Statement No. 333-278249, Fidelity Fund, filed July 17, 2024, at 17 (noting that approximately 1,700 Ethereum are issued per day, subject to various factors); and Amendment No. 3 to Form S-1 Registration Statement No. 333-257474, ARK 21 Fund, filed May 10, 2024, at 15-16 (noting that approximately 1,700 Ethereum are issued per day, subject to various factors).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         The market capitalization of Ethereum would rank in the top 25 among securities. 
                        <E T="03">See https://companiesmarketcap.com/usa/largest-companies-in-the-usa-by-market-cap/.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         The Exchange is unaware of any proposed rule change related to position and exercise limits for any equity option (including commodity ETF options) for which the Commission required consideration of whether the available supply of an underlying (whether it be a corporate stock or an ETF) or the contents of an ETF (commodity or otherwise) should be considered when an exchange proposed to establish those limits, other than recently with respect to ETFs that hold Bitcoin. 
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 57894 (May 30, 2008), 73 FR 32061 (June 5, 2008) (SR-CBOE-2005-11) (approval order in which the Commission stated that the “listing and trading of Gold Trust Options will be subject to the exchanges' rules pertaining to position and exercise limits and margin”); compare to Bitcoin ETF Option Approval. The Exchange notes when the Commission approved the filing to list options on an ETF holding gold, filing, the position limits in Rule 8.30 were the same as they are today. For reference, the current position and exercise limits for options on SPDR Gold Shares ETF (“GLD”) and options on iShares Silver Trust (“SLV”) are 250,000 contracts, or 10 times that proposed position and exercise limit for the Fidelity Fund options.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         For example, suppose an option has a position limit of 25,000 option contracts and there are a total of 10 investors trading that option. If all 10 investors max out their positions, that would result in 250,000 option contracts outstanding at that time. However, suppose 10 more investors decide to begin trading that option and also max out their positions. This would result in 500,000 option contracts outstanding at that time. An increase in the number of investors could cause an increase in outstanding options even if position limits remain unchanged.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <P>
                    Cboe noted that a Registration Statement on Form S-1 was filed with the Commission for the Fidelity Fund, which described the supply of Ethereum and the potential limits to that supply.
                    <SU>44</SU>
                    <FTREF/>
                     The Registration Statement permits an unlimited number of shares of the Fidelity Fund to be created. Further, the Commission approved the listing and trading of shares of the Fidelity Fund, which approval did not comment on the sufficient supply of Ethereum or address whether there was a risk that permitting an unlimited number of shares for the Fidelity Fund would impact the supply of Ethereum.
                    <SU>45</SU>
                    <FTREF/>
                     Cboe noted that it believed the Commission had ample time and opportunity to consider whether the supply of Ethereum was sufficient to permit the creation of unlimited Fidelity Fund shares, and does not believe considering this supply with respect to the establishment of position and exercise limits is appropriate given its lack of relevance to the purpose of position and exercise limits. However, the Cboe Proposal noted that given the significant size of the Ethereum supply, the proposed positions limit is more than sufficient to protect investors and the market.
                </P>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Amendment No. 5 to Form S-1 Registration Statement No. 333-278249, Fidelity Fund, filed July 17, 2024, at 17.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; and SRCboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products).
                    </P>
                </FTNT>
                <P>
                    Based on the above information demonstrating, among other things, Cboe believed that that the Fidelity Fund is characterized by a substantial number of outstanding shares that are actively traded and widely held, Cboe believed that the proposed position and exercise limits are extremely conservative compared to those of ETF options with similar market characteristics. Also, Cboe believed that the proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Cboe Proposal noted that these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying as well as the Ethereum market.
                    <SU>46</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Grayscale Fund, Grayscale Mini Fund or Bitwise Fund (“NYSE Ether Funds”)</HD>
                <P>
                    The NYSE American Proposal noted that Exchange Rules set forth position (and exercise) limits for options, which vary according to the number of shares outstanding and the amount of trading in underlying during the most recent six-month period pursuant to NYSE American Commentary 07(a)-(d) to Rule 904. NYSE American believes that the trading volume in each Fund is sufficient to qualify the Funds for position limits in excess of the proposed 25,000-contract limit, as shown below.
                    <SU>47</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         
                        <E T="03">See</E>
                         FactSet, 11/29/2024 and 12/31,24, 
                        <E T="03">https://www.factset.com/data-attribution.</E>
                         The Exchange notes that the Commission approved a 25,000-contract position limit for options trading on the Grayscale Bitcoin Mini Trust BTC which traded 335,492,9030 shares during its first two months of trading—well over the minimum requisite of 100,000,000 shares as required by Commentary .07(a) to Rule 904. 
                        <E T="03">See</E>
                         On October 19, 2024, the Commission approved the Exchange's proposal to list and trade options on the Grayscale Bitcoin Trust (BTC), the Grayscale Bitcoin Mini Trust BTC, and the Bitwise Bitcoin ETF. See Securities Exchange Act Release No. 101386 (October 18, 2024), 89 FR 84960 (October 24, 2024) (SRNYSEARCA-2024-49) (the “BTC Approval Order”).
                    </P>
                </FTNT>
                <GPOTABLE COLS="2" OPTS="L2,tp0,i1" CDEF="s125,r50">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">NYSE Ether Fund</CHED>
                        <CHED H="1">Total volume</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>427,312,540 (7/23/24-11/29/24).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>172,400,020 (7/23/24-11/29/24).</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>44,477,060 (7/23/24-12/31/24).</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    Specifically, the NYSE American Proposal noted that the most-recent trading volume in ETHE and ETH well exceeds the requisite minimum of 100,000,000 shares necessary to qualify for the 250,000-contract position and exercise limits.
                    <SU>48</SU>
                    <FTREF/>
                     By comparison, the NYSE American Proposal noted that other options symbols with less trading volume for the most-recent six months than ETHE and ETH are eligible for position and exercise limits of at least 250,000.
                    <SU>49</SU>
                    <FTREF/>
                     Further, the NYSE American Proposal noted that the most-recent trading volume for ETHW well exceeded the requisite minimum of 40,000,000 shares necessary to qualify for the 75,000-contract position (and exercise) limit, which is three times the proposed 25,000-contract limit.
                    <SU>50</SU>
                    <FTREF/>
                     Finally, the NYSE American Proposal noted that the proposed 25,000-contract position limit is the default for options that do not otherwise qualify for a 
                    <PRTPAGE P="16396"/>
                    higher limit and is therefore an adequate limit for each NYSE Ether Fund.
                    <SU>51</SU>
                    <FTREF/>
                     With respect to the outstanding shares of each NYSE Ether Fund, the NYSE American Proposal noted that if a market participant held the maximum number of contracts possible pursuant to the proposed position and exercise limits (25,000 contracts), the equivalent shares represented by the proposed position/exercise limit (2,500,000 shares) would represent the following approximate percentage of current outstanding shares:
                </P>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         Options 9, Section 13(d)(5), to qualify for the 250,000-contract position limit for options, the underlying security must (i) have trading volume of at least 100,000,000 shares during the most recent six-month trading period; or (ii) have trading volume of at least 75,000,000 shares during the most recent six-month trading period and have at least 300,000,000 shares currently outstanding.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         See 
                        <E T="03">https://www.theocc.com/Market-Data/Market-Data-Reports/Series-and-Trading-Data/Series-Search</E>
                         (including the following symbols that have a position limit of 250,000: GLD, IAU, SLV, SIVR, SGOL).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         Options 9, Section 13(d)(3), to qualify for the 75,000-contract position limit for options, the underlying security must (i) have trading volume of at least 40,000,000 shares during the most recent six-month trading period; or (ii) have trading volume of at least 30,000,000 shares during the most recent six-month trading period and have at least 120,000,000 shares currently outstanding.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         Per Options 9, Section 13(d)(1), “[t]he position limit shall be 25,000 for all other options” that do not satisfy the criteria for the higher position limits set forth in Options 9, Section 13(d)(2)-(5).
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s100,20,12,13">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">NYSE Ether Fund</CHED>
                        <CHED H="1">
                            Proposed position/
                            <LI>exercise limits in</LI>
                            <LI>equivalent shares</LI>
                        </CHED>
                        <CHED H="1">
                            Outstanding
                            <LI>shares</LI>
                            <LI>(11/29/24)</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage of
                            <LI>outstanding</LI>
                            <LI>shares</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>1.4</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>5.5</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>2,500,000</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>15.1</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The NYSE American Proposal noted that, as this table demonstrates, if a market participant held the maximum permissible options positions in one of the NYSE Ether Fund options and exercised all of them at the same time, that market participant would control a small percentage of the outstanding shares of the underlying NYSE Ether Fund. For example, the NYSE American Proposal stated that, as noted above, a position limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of the applicable NYSE Ether Fund (if that market participant exercised all its options). Based on the number of shares outstanding for each NYSE Ether Fund as of November 29, 2024, the NYSE American Proposal noted that the table below sets forth the approximate number of market participants that could hold the maximum of 25,000 same side positions in each NYSE Ether Fund that would equate to the number of shares outstanding of that NYSE Ether Fund:</P>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s100,12,24">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">NYSE Ether Fund</CHED>
                        <CHED H="1">
                            Shares
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">
                            Number of market
                            <LI>participants with 25,000</LI>
                            <LI>same side positions</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>71</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>18</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>7</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The NYSE American Proposal noted that this means if 71 market participants had 25,000 same side positions in options on ETHE, each of them would have to simultaneously exercise all those options to create a scenario that may put the underlying security under stress. Similarly, NYSE American noted that this means if 18 market participants had 25,000 same side positions in options on ETH, each of them would have to simultaneously exercise all those options to create a scenario that may put the underlying security under stress. Finally, NYSE American noted this means if 7 market participants had 25,000 same side positions in options on ETHW, each of them would have to simultaneously exercise all those options to create a scenario that may put the underlying security under stress. NYSE American noted that it believed it was highly unlikely for any of these scenarios to occur; however, even if such event did occur, the Exchange would not expect any of the Ether Funds to be under stress because such an event would merely induce the creation of more shares through the trust's creation and redemption process.</P>
                <P>
                    Further, given that the issuer of each NYSE Ether Fund may create and redeem shares that represent an interest in ether, the NYSE American Proposal noted that it believed it is relevant to compare the size of a position limit to the market capitalization of the ether market. The NYSE American Proposal noted that, as of November 29, 2024, the global supply of ether was approximately 120.44 million, and the price of one ether was approximately $3,593.49,
                    <SU>52</SU>
                    <FTREF/>
                     which equates to a market capitalization of approximately $439.78 billion. Consider the proposed position and exercise limit of 25,000 option contracts for each NYSE Ether Fund option. The NYSE American Proposal noted that a position and exercise limit of 25,000 same side contracts effectively restricts a market participant from holding positions that could result in the receipt of no more than 2,500,000 shares of ETHE, ETH, and ETHW, as applicable (if that market participant exercised all its options). NYSE American noted that the following table shows the share price of each NYSE Ether Fund on November 29, 2024, the value of 2,500,000 shares of the NYSE Ether Fund at that price, and the approximate percentage of that value of the size of the ether market:
                </P>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         See 
                        <E T="03">https://finance.yahoo.com/quote/ETH-USD/history/.</E>
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s100,15,16,14">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">NYSE Ether Fund</CHED>
                        <CHED H="1">
                            Nov. 29th
                            <LI>share price</LI>
                            <LI>($)</LI>
                        </CHED>
                        <CHED H="1">
                            Value of
                            <LI>2,500,000 shares</LI>
                            <LI>of Ether Fund</LI>
                            <LI>($)</LI>
                        </CHED>
                        <CHED H="1">
                            Percentage of
                            <LI>Ether market</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>$30.15</ENT>
                        <ENT>$75,250,000</ENT>
                        <ENT>0.017</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>33.84</ENT>
                        <ENT>84,600,000</ENT>
                        <ENT>0.020</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>25.80</ENT>
                        <ENT>64,500,000</ENT>
                        <ENT>0.015</ENT>
                    </ROW>
                </GPOTABLE>
                <PRTPAGE P="16397"/>
                <P>Therefore, if a market participant with the maximum 25,000 same side contracts in options on any of ETHE, ETH, or ETHW exercised all positions at one time, the NYSE American Proposal noted that such an event would have no practical impact on the ether.</P>
                <P>The NYSE American Proposal noted also reviewed the market capitalization of each NYSE Ether Fund relative to the market capitalization of the entire ether market, as of November 29, 2024.</P>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s100,15,16,14">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1"> </CHED>
                        <CHED H="1">
                            Ether/shares
                            <LI>outstanding</LI>
                        </CHED>
                        <CHED H="1">
                            Market
                            <LI>capitalization</LI>
                            <LI>(11/29/2024)</LI>
                        </CHED>
                        <CHED H="1">
                            Percent of
                            <LI>total Ether</LI>
                            <LI>market</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">Total Ether Market</ENT>
                        <ENT>120,440,000</ENT>
                        <ENT>$432,799,935,600</ENT>
                        <ENT>100.00</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>177,838,500</ENT>
                        <ENT>5,425,852,635</ENT>
                        <ENT>1.25</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>45,220,787</ENT>
                        <ENT>1,547,003,157</ENT>
                        <ENT>0.36</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>16,600,000</ENT>
                        <ENT>430,886,200</ENT>
                        <ENT>0.10</ENT>
                    </ROW>
                </GPOTABLE>
                <P>
                    As shown above, the NYSE American Proposal noted that the NYSE Ether Funds collectively represent approximately 1.71% of the global supply of ether (120,440,000).
                    <SU>53</SU>
                    <FTREF/>
                     Based on the $30.15 price of a ETHE share on November 29, 2024, a market participant could have redeemed one ether for approximately 119 ETHE shares. Another 14,354,890,070 ETHE shares could be created before the supply of ether was exhausted. As a result, 5,742 market participants would have to simultaneously exercise 25,000 same side positions in ETHE options to receive shares of the ETHE holding the entire global supply of ether. Similarly, the NYSE American Proposal noted that based on the $33.84 price of an ETH share on November 29, 2024, a market participant could have redeemed one ether for approximately 106 ETH shares. Another 12,789,596,206 ETH shares could be created before the supply of ether was exhausted. As a result, 5,116 market participants would have to simultaneously exercise 25,000 same side positions in ETH options to receive shares of ETH holding the entire global supply of ether. Similarly, the NYSE American Proposal noted that based on the $25.80 price of a ETHW share on November 29, 2024, a market participant could have redeemed one ether for approximately 139 ETHW shares. Another 16,775,191,302 ETHW shares could be created before the supply of ether was exhausted. As a result, 6,710 market participants would have to simultaneously exercise 25,000 same side positions in ETHW options to receive shares of ETHW holding the entire global supply of ether. Unlike the NYSE Ether Funds, the NYSE American Proposal noted that the number of shares that corporations may issue is limited. However, like corporations, which authorize additional shares, repurchase shares, or split their shares, the NYSE Ether Funds may create, redeem, or split shares in response to demand. The NYSE American Proposal noted that the supply of ether is larger than the available supply of most securities.
                    <SU>54</SU>
                    <FTREF/>
                     Given the significant unlikelihood of any of these events ever occurring, the NYSE American Proposal noted that it does not believe options on the Ether Funds should be subject to position and exercise limits even lower than those proposed (which are already equal to the lowest available limit for equity options in the industry) to protect the supply of ether.
                </P>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         
                        <E T="03">See id.</E>
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         The market capitalization of ether would rank in the top 20 among securities. 
                        <E T="03">See https://companiesmarketcap.com/usa/largest-companies-in-the-usa-by-market-cap/.</E>
                    </P>
                </FTNT>
                <P>
                    The NYSE American Proposal noted that it also believed the proposed limits are appropriate given position limits for ether futures. For example, the Chicago Mercantile Exchange (“CME”) imposes a position limit of 8,000 futures (for the initial spot month) on its ether futures contract.
                    <SU>55</SU>
                    <FTREF/>
                     The NYSE American Proposal noted that on November 29,2024, CME Jan 25 ether futures settled at $3,629.69. A position of 8,000 CME ether futures, therefore, would have a notional value of $1,451,876,000. The NYSE American Proposal provided the following table that shows the share price of each Ether Fund on November 29, 2024, and the approximate number of option contracts that equates to that notional value:
                </P>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 349 (description of CME ether futures) and Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices. Each CME ether futures contract is valued at fifty ethers as defined by the CME CF Ether Reference Rate (“ERR”). 
                        <E T="03">See</E>
                         CME Rulebook Chapter 349.
                    </P>
                </FTNT>
                <GPOTABLE COLS="3" OPTS="L2,tp0,i1" CDEF="s100,12,26">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">NYSE Ether Fund</CHED>
                        <CHED H="1">
                            Nov. 29th
                            <LI>share price</LI>
                        </CHED>
                        <CHED H="1">Number of option contracts</CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">ETHE</ENT>
                        <ENT>$30.15</ENT>
                        <ENT>481,551</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETH</ENT>
                        <ENT>33.84</ENT>
                        <ENT>429,041</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">ETHW</ENT>
                        <ENT>25.80</ENT>
                        <ENT>562,743</ENT>
                    </ROW>
                </GPOTABLE>
                <P>The approximate number of option contracts for each NYSE Ether Fund that would equate to the notional value of CME ether futures NYSE American noted is significantly higher than the proposed limit of 25,000 options contract for each NYSE Ether Fund option. The fact that many options ultimately expire out-of-the-money and thus are not exercised for shares of the underlying, while the delta of an ether future is 1, the NYSE American Proposal noted further demonstrates how conservative the proposed limits of 25,000 options contracts are for the NYSE Ether Fund options.</P>
                <P>
                    NYSE American noted, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>56</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month 
                    <PRTPAGE P="16398"/>
                    position limits.
                    <SU>57</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. The NYSE American Proposal noted that considering CME's position limits on futures for ether, it believed that that the proposed same side position limits are more than appropriate for the NYSE Ether Fund options.
                </P>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    Consistent with its position regarding the irrelevance of bitcoin supply to position limits for options on bitcoin ETPs, the NYSE American Proposal noted that it likewise believed the available supply of ether is not relevant to the determination of position and exercise limits for NYSE Ether Fund options.
                    <SU>58</SU>
                    <FTREF/>
                     The NYSE American Proposal noted that position and exercise limits are not a tool that should be used to address a potential limited supply of the underlying of an underlying. Position and exercise limits do not limit the total number of options that may be held, but rather they limit the number of positions a single customer may hold or exercise at one time.
                    <SU>59</SU>
                    <FTREF/>
                     NYSE American noted that “[s]ince the inception of standardized options trading, the options exchanges have had rules imposing limits on the aggregate number of options contracts that a member or customer could hold or exercise.” 
                    <SU>60</SU>
                    <FTREF/>
                     The NYSE American Proposal noted that position and exercise limit rules are intended “to prevent the establishment of options positions that can be used or might create incentives to manipulate or disrupt the underlying market so as to benefit the options position. In particular, the NYSE American Proposal noted that position and exercise limits are designed to minimize the potential for mini-manipulations and for corners or squeezes of the underlying market. In addition, such limits serve to reduce the possibility for disruption of the options market itself, especially in illiquid options classes.” 
                    <SU>61</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         
                        <E T="03">See</E>
                         BTC Approval Order, 89 FR at 84965, n. 48 (asserting that, outside of the bitcoin context, the Exchange is unaware of any proposed rule change related to position and exercise limits for any equity option (including commodity ETF options) for which the Commission required consideration of whether the available supply of an underlying (whether it be a corporate stock or an ETF) or the contents of an ETF (commodity or otherwise) should be considered when an exchange proposed to establish those limits). 
                        <E T="03">See, e.g.,</E>
                         Securities Exchange Act Release No. 57894 May 30, 2008), 73 FR 32061 (June 5, 2008) (SR-CBOE-2005-11) (approval order in which the Commission stated that the “listing and trading of Gold Trust Options will be subject to the exchanges' rules pertaining to position and exercise limits and margin”). The Exchange notes when the Commission approved this filing, the position limits in Rule 904 were the same as they are today. For reference, the current position and exercise limits for options on SPDR Gold Shares ETF (“GLD”) and options on iShares Silver Trust (“SLV”) are 250,000 contracts, or 10 times that proposed position and exercise limit for the Ether Fund options.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         For example, suppose an option has a position limit of 25,000 option contracts and there are a total of 10 investors trading that option. If all 10 investors max out their positions, that would result in 250,000 option contracts outstanding at that time. However, suppose 10 more investors decide to begin trading that option and also max out their positions. This would result in 500,000 option contracts outstanding at that time. An increase in the number of investors could cause an increase in outstanding options even if position limits remain unchanged.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 39489 (December 24, 1997), 63 FR 276 (January 5, 1998) (SR-CBOE-1997-11).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    The NYSE American Proposal noted that notes that a Registration Statement on Form S-1 was filed with the Commission for each NYSE Ether Fund, each of which described the supply of ether as being unlimited.
                    <SU>62</SU>
                    <FTREF/>
                     Each Registration Statement permits an unlimited number of shares of the applicable NYSE Ether Fund to be created. Further, the Commission approved proposed rule changes that permitted the listing and trading of shares of each NYSE Ether Fund, which approval did not comment on the sufficient supply of ether or address whether there was a risk that permitting an unlimited number of shares for a Ether Fund would impact the supply of ether.
                    <SU>63</SU>
                    <FTREF/>
                     Therefore, NYSE American believed the Commission had ample time and opportunity to consider whether the supply of ether was sufficient to permit the creation of unlimited NYSE Ether Fund shares, and does not believe considering this supply with respect to the establishment of position and exercise limits is appropriate given its lack of relevance to the purpose of position and exercise limits. However, given the significant size of the ether supply, the proposed positions limits are more than sufficient to protect investors and the market.
                </P>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         
                        <E T="03">See, e.g.,</E>
                         ETHE Form S-1 Registration Statement, at p. 77, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2020455/000119312524106957/d756153ds1.htm;</E>
                         ETH Amendment No. 5 to Form S-1 Registration Statement, at p. 79, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2020455/000119312524181081/d756153ds1a.htm;</E>
                         and ETHW Form S-1 Registration Statement 1, at p. 17, 
                        <E T="03">https://www.sec.gov/Archives/edgar/data/2013744/000199937124007581/bitwise-s1a_061824.htm</E>
                         (“Ether Funds Reg. Stmts.”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         
                        <E T="03">See</E>
                         BTC Approval Order.
                    </P>
                </FTNT>
                <P>Based on the foregoing, the NYSE American Proposal noted that it believed the proposal to list options on the NYSE Ether Funds with positions and exercise limits of 25,000 on the same side, the lowest position limit available in the options industry, is conservative and appropriate given the market capitalization, average daily volume, and high number of outstanding shares for each of the NYSE Ether Funds. The NYSE American Proposal noted that the proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. NYSE American believed these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying NYSE Ether Funds as well as the ether market.</P>
                <P>
                    Options 3A, Section 3(a) permits the Exchange to authorize trading a FLEX option class on any equity security if it may authorize for trading a non-FLEX option class on that equity security pursuant to Options 4, Section 3. At this time, the Exchange is not proposing to permit the Ether Trusts to trade as a FLEX Option. The Exchange therefore proposes to modify Options 3A, Section 3(a) to specify this exception, which will add clarity and transparency to the Exchange Rules.
                    <SU>64</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         The Exchange will continue ongoing discussions with the Commission regarding appropriate position limits for the Trust and plans to submit a separate rule filing that would permit the Exchange to authorize for trading FLEX options on the Trust (which filing may propose changes to existing FLEX option position limits for such options if appropriate).
                    </P>
                </FTNT>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. ISE intends to apply those same program procedures to options on the Ether Trusts that it applies to the Exchange's other options products.
                    <SU>65</SU>
                    <FTREF/>
                     ISE's market surveillance staff would have access to the surveillances conducted by Nasdaq 
                    <SU>66</SU>
                    <FTREF/>
                     with respect to the Ether Trusts and would review activity in the underlying Ether Trusts when conducting surveillances for market abuse or manipulation in the options on the Ether Trusts. Additionally, ISE is a member of the 
                    <PRTPAGE P="16399"/>
                    Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by ISE's market surveillance staff, ISE would also be able to obtain information regarding trading in shares of the Ether Funds on other exchanges though ISG. Further, ISE has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”). Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>67</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         The surveillance program includes real-time patterns for price and volume movements and post-trade surveillance patterns (
                        <E T="03">e.g.,</E>
                         spoofing, marking the close, pinging, phishing).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>66</SU>
                         The Nasdaq Stock Market LLC is an affiliated market of ISE.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>67</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members at 4691. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>
                    The underlying shares of spot ethereum ETPs, including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot ether-based exchange-traded products, including the Trust (“Ethereum ETP Order”): 
                    <SU>68</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>68</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937, 46941 (May 23, 2024) (File Nos. SR-NYSEARCA-2023-70; SR-NYSEARCA-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, To List and Trade Shares of Ether-Based Exchange-Traded Products).
                    </P>
                </FTNT>
                <EXTRACT>
                    <P>
                        Each Exchange has a comprehensive surveillance-sharing agreement with the Chicago Mercantile Exchange (“CME”) via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.
                        <SU>69</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>69</SU>
                             
                            <E T="03">Id.</E>
                             at 46941.
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that in the Ethereum ETP Order, given the consistently high correlation between the CME ether futures market and the spot ether market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>70</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>70</SU>
                         
                        <E T="03">Id.</E>
                         at 46938.
                    </P>
                </FTNT>
                <P>
                    In light of surveillance measures related to both options and futures as well as the underlying Ether Trusts,
                    <SU>71</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Trusts.
                </P>
                <FTNT>
                    <P>
                        <SU>71</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100016 (April 23, 2024), 89 FR 33414, 33425-33426 (April 292, 2024) (SR-NASDAQ-2023-045) (Notice of Filing of Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the iShares Ethereum Trust Under Nasdaq Rule 5711(d) (Commodity-Based Trust Shares).
                    </P>
                </FTNT>
                <P>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 the Ether Trusts up to the number of expirations currently permissible under the Exchange Rules. Because the proposal is limited to one class, the Exchange believes any additional traffic that may be generated from the introduction of the options on the Ether Trust will be manageable.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
                    <SU>72</SU>
                    <FTREF/>
                     in general, and furthers the objectives of Section 6(b)(5) of the Act,
                    <SU>73</SU>
                    <FTREF/>
                     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) 
                    <SU>74</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>72</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>73</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>74</SU>
                         15 U.S.C. 78(f)(b)(5).
                    </P>
                </FTNT>
                <P>
                    In particular, the Exchange believes that the proposal to list and trade options on the Ether Trusts 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 the Ether Trusts will provide investors with an opportunity to realize the benefits of utilizing options on a Ether Trust, including cost efficiencies and increased hedging strategies. The Exchange believes that offering options on the Ether Trusts 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 Ether and with Ether-related products and positions. Additionally, the Exchange's offering of options on the Ether Trusts 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 Units,
                    <SU>75</SU>
                    <FTREF/>
                     which, as described above, are trusts structured in substantially the same manner as Ether Trusts and essentially offer the same objectives and benefits to investors, just with respect to a different commodity (
                    <E T="03">i.e.,</E>
                     Ether rather than precious metals) and for which the Exchange has not identified any issues with the continued listing and trading of commodity-backed Unit options it currently lists for trading.
                </P>
                <FTNT>
                    <P>
                        <SU>75</SU>
                         
                        <E T="03">See</E>
                         Options 4, Section 3(h)(iv).
                    </P>
                </FTNT>
                <P>
                    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 the Ether Trusts satisfy the initial listing standards and continued listing standards currently in the Exchange Rules applicable to options on all Units, including Units that hold other commodities already deemed appropriate for options trading on the Exchange. Additionally, as demonstrated above, each Ether Trust is characterized by a substantial number of shares that are widely held and actively traded. Options on the Ether Trusts will 
                    <PRTPAGE P="16400"/>
                    trade in the same manner as any other Unit options—the same Exchange Rules that currently govern the listing and trading of all Unit options, including permissible expirations, strike prices and minimum increments, and applicable margin requirements, will govern the listing and trading of options on Ether Trusts in the same manner.
                </P>
                <P>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 Ether Trusts satisfy the initial listing standards and continued listing standards currently in the Exchange Rules applicable to options on all ETFs and ETPs, including ETPs that hold other commodities already deemed appropriate for options trading on the Exchange. Additionally, as demonstrated above, each Ether Trust is characterized by a substantial number of shares that are widely held and actively traded. Options on the Ether Trust will trade in the same manner as any other ETF or ETP options—the same Exchange Rules that currently govern the listing and trading of options, including permissible expirations, strike prices, minimum increments, and margin requirements, will govern the listing and trading of options on Ether Trusts in the same manner.</P>
                <P>The proposed position and exercise limit for options on the Ether Trusts is 25,000 contracts. These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given the Ether Trusts' market capitalization, average daily volume, number of beneficial holders, and high number of outstanding shares as described herein for each Ether Trust. The proposed position and exercise limits are consistent with the Act as they addresses concerns related to manipulation and protection of investors because the position and exercise limits are extremely conservative and more than appropriate given the Ether Trusts are actively traded.</P>
                <P>
                    The Exchange believes the proposed rule change to exclude the Ether Trusts from being eligible for trading as a FLEX Option is consistent with the Act, because it will permit the Exchange to continue to participate in ongoing discussions with the Commission regarding appropriate position and exercise limits for options on the Ether Trusts. The Exchange also believes the proposed rule change to Options 3A, Section 3(a), to make clear that options on the Ether Trusts are not eligible for FLEX Trading, will remove impediments to and perfect the mechanism of a free and open market and a national market system because it adds clarity and transparency to Exchange Rules making them easier to navigate and understand to the benefit of investors and the public interest.
                    <SU>76</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>76</SU>
                         The Exchange will continue ongoing discussions with the Commission regarding appropriate position limits for the Ether Trusts and plans to submit a separate rule filing that would permit the Exchange to authorize for trading FLEX options on the Ether Trusts (which filing may propose changes to existing FLEX option position limits for such options if appropriate).
                    </P>
                </FTNT>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to options the Ether Trusts that it applies to the Exchange's other options products.
                    <SU>77</SU>
                    <FTREF/>
                     ISE's market surveillance staff would have access to the surveillances conducted by Nasdaq 
                    <SU>78</SU>
                    <FTREF/>
                     with respect to the Ether Trusts and would review activity in the underlying Ether Trusts when conducting surveillances for market abuse or manipulation in the options on the Ether Trusts. Additionally, ISE is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to the surveillance that is conducted by the Exchange's market surveillance staff, the Exchange would also be able to obtain information regarding trading in shares of the Ether Trusts on other exchanges though ISG. Further, ISE has a Regulatory Services Agreement with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillances.
                    <SU>79</SU>
                    <FTREF/>
                     Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Ether Trusts.
                </P>
                <FTNT>
                    <P>
                        <SU>77</SU>
                         The surveillance program includes real-time patterns for price and volume movements and post-trade surveillance patterns (
                        <E T="03">e.g.,</E>
                         spoofing, marking the close, pinging, phishing).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>78</SU>
                         The Nasdaq Stock Market LLC is an affiliated market of ISE.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>79</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules, and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. ISE intends to apply those same program procedures to options on the Ether Trusts that it applies to the Exchange's other options products.
                    <SU>80</SU>
                    <FTREF/>
                     ISE's market surveillance staff would have access to the surveillances conducted by Nasdaq 
                    <SU>81</SU>
                    <FTREF/>
                     with respect to the Ether Trusts and would review activity in the underlying Ether Trusts when conducting surveillances for market abuse or manipulation in the options on the Ether Trusts. Additionally, ISE is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition, ISE has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”). Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>82</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>80</SU>
                         The surveillance program includes real-time patterns for price and volume movements and post-trade surveillance patterns (
                        <E T="03">e.g.,</E>
                         spoofing, marking the close, pinging, phishing).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>81</SU>
                         The Nasdaq Stock Market LLC is an affiliated market of ISE.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>82</SU>
                         Section 19(g)(1) of the Act, among other things, requires every SRO registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>
                    The underlying shares of spot ethereum ETPs, including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade 
                    <PRTPAGE P="16401"/>
                    shares of spot ether-based exchange-traded products, including the Trust (“Ethereum ETP Order”): 
                    <SU>83</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>83</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100224 (May 23, 2024), 89 FR 46937, 46941 (May 23, 2024) (File Nos. SR-NYSEARCA-2023-70; SR-NYSEARCA-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, To List and Trade Shares of Ether-Based Exchange-Traded Products).
                    </P>
                </FTNT>
                <EXTRACT>
                    <P>
                        Each Exchange has a comprehensive surveillance-sharing agreement with the Chicago Mercantile Exchange (“CME”) via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.
                        <SU>84</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>84</SU>
                             
                            <E T="03">Id.</E>
                             at 46941.
                        </P>
                    </FTNT>
                </EXTRACT>
                <P>
                    The Exchange states that in the Ethereum ETP Order, given the consistently high correlation between the CME ether futures market and the spot ether market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>85</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>85</SU>
                         
                        <E T="03">Id.</E>
                         at 46938.
                    </P>
                </FTNT>
                <P>
                    In light of surveillance measures related to both options and futures as well as the underlying Ether Trusts,
                    <FTREF/>
                    <SU>86</SU>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Ether Trusts.
                </P>
                <FTNT>
                    <P>
                        <SU>86</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100016 (April 23, 2024), 89 FR 33414, 33425-33426 (April 292, 2024) (SR-NASDAQ-2023-045) (Notice of Filing of Amendment No. 2 to Proposed Rule Change to List and Trade Shares of the iShares Ethereum Trust Under Nasdaq Rule 5711(d) (Commodity-Based Trust Shares).
                    </P>
                </FTNT>
                <P>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 the Ether Trusts up to the number of expirations currently permissible under the Exchange Rules. Because the proposal is limited to one class, the Exchange believes any additional traffic that may be generated from the introduction of the options on the Ether Trust will be manageable.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>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.</P>
                <P>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 options on Ether Trusts would need to satisfy the initial listing standards set forth in the Exchange Rules in the same manner as any other option on ETFs before the Exchange could list options on them. Additionally, options on the Ether Trusts 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 Ether Trusts. Also, and as stated above, the Exchange already lists options on other commodity-based ETPs.</P>
                <P>
                    The Exchange does not believe that the proposal to list and trade options on Ether Trusts 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 options on the Ether Trusts 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. As noted herein, this is a competitive filing as the Commission recently approved the listing and trading of options on an ETP that, like the Ether Trusts, holds ether.
                    <SU>87</SU>
                    <FTREF/>
                     Additionally, other options exchanges are free to amend their listing rules, as applicable, to permit them to list and trade options on Ether Trusts. The Exchange notes that listing and trading options on Ether Trust 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.
                </P>
                <FTNT>
                    <P>
                        <SU>87</SU>
                         
                        <E T="03">See supra</E>
                         note 4.
                    </P>
                </FTNT>
                <P>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 options on the Ether Trusts 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 Ether prices and Ether-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were either solicited or received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>88</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>89</SU>
                    <FTREF/>
                     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 
                    <SU>90</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>91</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>88</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>89</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>90</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>91</SU>
                         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 Commission waives this requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>92</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>93</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon filing. The Commission previously approved the listing of options on iShares Ethereum 
                    <PRTPAGE P="16402"/>
                    Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.
                    <SU>94</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying Bitcoin Trusts, including, among other things, information regarding trading volume, the number of beneficial holders, and the market capitalization of the Ether Trusts. The proposal also establishes position and exercise limits for options on the Ether Trusts and provides information regarding the surveillance procedures that will apply to Ether Trust options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading Bitcoin Trust options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>95</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>92</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>93</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>94</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102797 (April 9, 2025), (SR-Cboe-2024-036) (Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on Shares of the Fidelity Ethereum Fund) 
                        <E T="03">See also</E>
                         Securities Exchange Act Release No. 102798 (April 9, 2025), (SR-ISE-2024-35) (Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on the iShares Ethereum Trust). 
                        <E T="03">See also</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025), (SR-NYSEAMER-2024-45) (Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to Amend Exchange Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>95</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov</E>
                    . Please include file number SR-ISE-2025-11 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-ISE-2025-11. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-2025-11 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>96</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>96</SU>
                             17 CFR 200.30-3(a)(12), (59).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06501 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102830; File No. SR-CboeEDGX-2025-029]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Cboe EDGX Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules To Allow the Exchange To List Options on the iShares Ethereum Trust</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 9, 2025, Cboe EDGX Exchange, Inc. (“Exchange” or “EDGX”) 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 Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>Cboe EDGX Exchange, Inc. (the “Exchange” or “EDGX”) proposes to amend its Rules to allow the Exchange to list options on the iShares Ethereum Trust (the “Trust”). The text of the proposed rule change is provided in Exhibit 5.</P>
                <P>
                    The text of the proposed rule change is also available on the Exchange's website (
                    <E T="03">http://markets.cboe.com/us/options/regulation/rule_filings/edgx/</E>
                    ), at the Exchange's Office of the Secretary, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>
                    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 
                    <PRTPAGE P="16403"/>
                    the most significant aspects of such statements.
                </P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Rule 19.3 regarding the criteria for underlying securities. Specifically, the Exchange proposes to amend Rule 19.3(i) to allow the Exchange to list and trade options on shares or other securities (“Fund Shares”) that are principally traded on a national securities exchange and are defined as an “NMS stock” under Rule 600 of Regulation NMS and that represent interests in the Trust. This is a competitive filing based on a similar proposal submitted by Nasdaq ISE, LLC (“ISE”), which was recently approved by the Securities and Exchange Commission (the “Commission”).
                    <SU>5</SU>
                    <FTREF/>
                     Current Rule 19.3(i) provides that, subject to certain other criteria set forth in that Rule, securities deemed appropriate for options trading include Fund Shares that represent certain types of interests,
                    <SU>6</SU>
                    <FTREF/>
                     including interests in certain specific trusts that hold financial instruments, money market instruments, precious metals (which are deemed commodities), or Bitcoin (which is another crypto currency and deemed a commodity). In addition, Rule 19.3(i) requires that Fund Shares (1) meet the criteria and standards set forth in Rule 19.3(a) and (b),
                    <SU>7</SU>
                    <FTREF/>
                     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 Fund Shares 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.
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 100661 (August 6, 2024), 89 FR 65690 (August 12, 2024) (SR-ISE-2024-35); and Securities Exchange Act Release No. 102798 (April 9, 2025) (“ISE Approval”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i), which permits options trading on Fund Shares that (1) represent interests in registered investment companies (or series thereof) organized as open-end management investment companies, unit investment trusts or similar entities, and that hold portfolios of securities comprising or otherwise based on or representing investments in indexes or portfolios of securities (or that hold securities in one or more other registered investment companies that themselves hold such portfolios of securities) (“Funds ”) and/or financial instruments including, but not limited to, stock index futures contracts, options on futures, options on securities and indexes, 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”) constituting or otherwise based on or representing an investment in an index or portfolio of securities and/or Financial Instruments and Money Market Instruments, or (2) 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 (3) represent interests in a trust or similar entity that holds a specified non-U.S. currency or currencies 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 (4) represent interests in the SPDR Gold Trust or are issued by the iShares COMEX Gold Trust or iShares Silver Trust, the Aberdeen Standard Physical Silver Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Physical Palladium Trust, the Aberdeen Standard Physical Platinum Trust, the Sprott Physical Gold Trust, the Goldman Sachs Physical Gold ETF, or the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         Rule 19.3(a) and (b) sets forth the criteria that underlying securities must satisfy for option contracts on those underlying securities to be eligible for listing and trading on the Exchange.
                    </P>
                </FTNT>
                <P>The Exchange proposes to add the Trust to the list of Fund Shares on which the Exchange may list options in Rule 19.3(i). The shares are issued by the Trust, a Delaware statutory trust. The Trust will operate pursuant to a trust agreement (the “Trust Agreement”) between the Sponsor, BlackRock Fund Advisors (the “Trustee”) as the trustee of the Trust and will appoint Wilmington Trust, National Association, as Delaware Trustee of the Trust (the “Delaware Trustee”) by such time that the Registration Statement is effective. The Trust issues Shares representing fractional undivided beneficial interests in its net assets. The assets of the Trust will consist only of ether (“ether” or “ETH”) held by a custodian on behalf of the Trust, except under limited circumstances when transferred through the Trust's prime broker temporarily (described below), and cash. Neither the Trust, nor the Sponsor, nor the Ether Custodian (as defined below), nor any other person associated with the Trust will, directly or indirectly, engage in action where any portion of the Trust's ETH becomes subject to the Ethereum proof-of-stake validation or is used to earn additional ETH or generate income or other earnings. Coinbase Custody Trust Company, LLC (the “Ether Custodian”), is the custodian for the Trust's ether holdings, and maintains a custody account for the Trust (“Custody Account”); Coinbase, Inc. (the “Prime Execution Agent”), an affiliate of the Ether Custodian, is the prime broker for the Trust and maintains a trading account for the Trust (“Trading Account”); and The Bank of New York Mellon is the custodian for the Trust's cash holdings (the “Cash Custodian” and together with the Ether Custodian, the “Custodians”) and the administrator of the Trust (the “Trust Administrator”). Under the Trust Agreement, the Trustee may delegate all or a portion of its duties to any agent, and has delegated the bulk of the day-to-day responsibilities to the Trust Administrator and certain other administrative and record-keeping functions to its affiliates and other agents. The Trust is not an investment company registered under the Investment Company Act of 1940, as amended (the “1940 Act”).</P>
                <P>The investment objective of the Trust is to reflect generally the performance of the price of ether. The Trust seeks to reflect such performance before payment of the Trust's expenses and liabilities. The Shares are intended to constitute a simple means of making an investment similar to an investment in ether through the public securities market rather than by acquiring, holding and trading ether directly on a peer-to-peer or other basis or via a digital asset platform. The Shares have been designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in ether, while at the same time having an intrinsic value that reflects, at any given time, the investment exposure to the ether owned by the Trust at such time, less the Trust's expenses and liabilities. Although the Shares are not the exact equivalent of a direct investment in ether, they provide investors with an alternative method of achieving investment exposure to ether through the public securities market, which may be more familiar to them.</P>
                <P>
                    An investment in the Shares is backed by ether held by the Ether Custodian on behalf of the Trust. All of the Trust's ether will be held in the Custody Account, other than the Trust's ether which is temporarily maintained in the Trading Account under limited circumstances, 
                    <E T="03">i.e.,</E>
                     in connection with 
                    <PRTPAGE P="16404"/>
                    creation and redemption Basket 
                    <SU>8</SU>
                    <FTREF/>
                     activity or sales of ether deducted from the Trust's holdings in payment of Trust expenses or the Sponsor's fee (or, in extraordinary circumstances, upon liquidation of the Trust). The Custody Account includes all of the Trust's ether held at the Ether Custodian, but does not include the Trust's ether temporarily maintained at the Prime Execution Agent in the Trading Account from time to time. The Ether Custodian will keep all of the private keys associated with the Trust's ether held in the Custody Account in “cold storage”.
                    <SU>9</SU>
                    <FTREF/>
                     The hardware, software, systems, and procedures of the Ether Custodian may not be available or cost-effective for many investors to access directly.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         The Trust issues and redeems Shares only in blocks of 40,000 or integral multiples thereof. A block of 40,000 Shares is called a “Basket.” These transactions take place in exchange for ether.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         The term “cold storage” refers to a safeguarding method by which the private keys corresponding to the Trust's ether are generated and stored in an offline manner, subject to layers of procedures designed to enhance security. Private keys are generated by the Ether Custodian in offline computers that are not connected to the internet so that they are more resistant to being hacked.
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to spot ether as well as a hedging vehicle to meet their investment needs in connection with ether products and positions. Similar to other commodity ETFs in which options may be listed on the Exchange (
                    <E T="03">e.g.,</E>
                     SPDR® Gold Trust, the iShares COMEX Gold Trust, the iShares Silver Trust, or the Aberdeen Standard Physical Gold Trust),
                    <SU>10</SU>
                    <FTREF/>
                     the proposed ETF is a trust that essentially offers the same objectives and benefits to investors.
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i).
                    </P>
                </FTNT>
                <P>Options on the Trust 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 options on the Trust on the Exchange. Today, these rules apply to options on the various commodities ETFs deemed appropriate for options trading on the Exchange pursuant to Rule 19.3(i).</P>
                <P>
                    Pursuant to Rule 19.3(a), a security (which includes a Fund Share) on which options may be listed and traded on the Exchange must be registered (with the Commission) and be an NMS stock (as defined in Rule 600 of Regulation NMS under the Securities Exchange Act of 1934, as amended (the “Act”)), and be characterized by a substantial number of outstanding shares that are widely held and actively traded.
                    <SU>11</SU>
                    <FTREF/>
                     Additionally, Rule 19.3(i)(1) requires that Fund Shares either (1) meet the criteria and standards set forth in Rule 19.3(a) and (b),
                    <SU>12</SU>
                    <FTREF/>
                     or (2) are available for creation or redemption each business day in cash or in kind from the investment company, commodity pool or other entity at a price related to net asset value, and the investment company, commodity pool or other entity is obligated to provide that Fund Shares may be created even if some or all of the securities and/or cash required to be deposited have not been received by the Fund, the unit investment trust or the management investment company, provided the authorized creation participant has undertaken to deliver the securities and/or cash as soon as possible and such undertaking is secured by the delivery and maintenance of collateral consisting of cash or cash equivalents satisfactory to the Fund, all as described in the Fund's or unit trust's prospectus. The Trust satisfies Rule 19.3(i)(1)(B), as each is subject to this creation and redemption process.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The criteria and guidelines for a security to be considered widely held and actively traded are set forth in Rule 19.3(b), subject to exceptions.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         Rule 19.3(a) and (b) sets forth the criteria an underlying security must meet for the Exchange to be able to list options on the underlying.
                    </P>
                </FTNT>
                <P>Options on the Trust will be subject to the Exchange's continued listing standards set forth in Rule 19.4(g) for Fund Shares deemed appropriate for options trading pursuant to Rule 19.3(i). Specifically, 19.4(g) provides that Fund Shares that were initially approved for options trading pursuant to Rule 19.3 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 Fund Shares if the security ceases to be an NMS stock (see Rule 19.4(b)(4)). Additionally, the Exchange will not open for trading any additional series of option contracts of the class covering Fund Shares in any of the following circumstances: (1) in the case of options covering Fund Shares approved for trading under Rule 19.3(i)(1)(A), in accordance with the terms of Rule 19.4(b)(1), (2) and (3); (2) in the case of options covering Fund Shares approved pursuant to Rule 19.3(i)(1)(B), following the initial 12-month period beginning upon the commencement of trading in the Fund Shares on a national securities exchange and are defined as NMS stock under Rule 600 of Regulation NMS, there were fewer than 50 record and/or beneficial holders of such Fund Shares for 30 consecutive days; (3) the value of the index, non-U.S. currency, 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 or Money Market Instruments, or portfolio of securities on which the 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.</P>
                <P>
                    Options on the Trust will be physically settled contracts with American-style exercise.
                    <SU>13</SU>
                    <FTREF/>
                     Consistent with current Rule 19.6, which governs the opening of options series on a specific underlying security (including Fund Shares), the Exchange will open at least one expiration month for options on the Trust 
                    <SU>14</SU>
                    <FTREF/>
                     at the commencement of trading on the Exchange and may also list series of options on the Trust for trading on a weekly,
                    <SU>15</SU>
                    <FTREF/>
                     monthly,
                    <SU>16</SU>
                    <FTREF/>
                     or quarterly 
                    <SU>17</SU>
                    <FTREF/>
                     basis. The Exchange may also list long-term equity option series 
                    <PRTPAGE P="16405"/>
                    (“LEAPS”) that expire from 12 to 39 months from the time they are listed.
                    <SU>18</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         Rule 19.2, which provides that the rights and obligations of holders and writers are set forth in the Rules of the Options Clearing Corporation (“OCC”); 
                        <E T="03">and</E>
                         Equity Options Product Specifications January 3, 2024), available at Equity Options Specifications (
                        <E T="03">cboe.com</E>
                        ); 
                        <E T="03">see also</E>
                         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).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6(b). The monthly expirations are subject to certain listing criteria for underlying securities described within Rule 19.3. 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. 
                        <E T="03">See</E>
                         OCC By-Laws Article I, Section 1. Pursuant to Rule 19.6(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. 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .05.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .08.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .04.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Rule 19.8.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rule 19.6, Interpretation and Policy .01, which governs strike prices of series of options on Fund Shares, the interval of strike prices for series of options on the Trust will be $1 or greater when the strike price is $200 or less and $5 or greater where the strike price is over $200.
                    <SU>19</SU>
                    <FTREF/>
                     Additionally, the Exchange may list series of options pursuant to the $1 Strike Price Interval Program,
                    <SU>20</SU>
                    <FTREF/>
                     the $0.50 Strike Program,
                    <SU>21</SU>
                    <FTREF/>
                     the $2.50 Strike Price Program,
                    <SU>22</SU>
                    <FTREF/>
                     and the $5 Strike Program.
                    <SU>23</SU>
                    <FTREF/>
                     Pursuant to Rule 21.5, where the price of a series of a Trust 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.
                    <SU>24</SU>
                    <FTREF/>
                     Any and all new series of Trust options that the Exchange lists will be consistent and comply with the expirations, strike prices, and minimum increments set forth in Rules 19.6 and 21.5, as applicable.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         The Exchange notes that for options listed pursuant to the Short Term Option Series Program, the Monthly Options Series Program, and the Quarterly Options Series Program, Rule 19.6, Interpretations and Policies .05, .08, and .04 specifically sets forth intervals between strike prices on Quarterly Options Series, Short Term Option Series, and Monthly Options Series, respectively.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .02.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .06.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6, Interpretation and Policy .03.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See</E>
                         Rule 19.6(d)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         If options on an Ethereum Fund 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. 
                        <E T="03">See</E>
                         Rule 21.5(e) (which describes the requirements for the Penny Interval Program).
                    </P>
                </FTNT>
                <P>
                    Trust options will trade in the same manner as any other Fund Share options on the Exchange. The Exchange Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of Trust options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange, including the precious-metal and Bitcoin-backed commodity Fund Shares already deemed appropriate for options trading on the Exchange pursuant to current Rule 19.3(i).
                    <SU>25</SU>
                    <FTREF/>
                     Position and exercise limits for options on ETFs, including options on Ethereum Funds, are determined pursuant to Rules 18.7 and 18.9.
                    <SU>26</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         
                        <E T="03">See, e.g.,</E>
                         SPDR Gold Trust, iShares COMEX Gold Trust or iShares Silver Trust, the Aberdeen Standard Physical Silver Trust, the Aberdeen Standard Physical Gold Trust, the Aberdeen Standard Physical Palladium Trust, the Aberdeen Standard Physical Platinum Trust, the Sprott Physical Gold Trust, the Goldman Sachs Physical Gold ETF or the Fidelity Wise Origin Bitcoin Fund, the ARK 21Shares Bitcoin ETF, the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, or the Bitwise Bitcoin ETF.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         Rule 18.7(a)(1) provides that no Options Member shall make, for any account in which it has any interest or for the account of any Customer, an opening transaction on any exchange if the Options Member has reason to believe that as a result of such transaction the Options Member or its Customer would, acting alone or in concert with others, directly or indirectly, exceed the applicable position limit fixed by Cboe Exchange, Inc. (“Cboe Options”). Rule 18.9(a)(1) provides that no Options Member shall exercise, for any account in which it has an interest or for the account of any Customer, a long position in any options contract where such Options Member or Customer, acting alone or in concert with others, directly or indirectly, has or will have exceeded the applicable exercise limit fixed from time to time by Cboe Options for any options contract traded on EDGX Options and Cboe Options. 
                        <E T="03">See also</E>
                         Cboe Options Rules 8.30 and 8.42.
                    </P>
                </FTNT>
                <P>
                    Pursuant to Rules 18.7 and 18.9, the position and exercise limits, respectively, for Trust options will be 25,000 same side option contracts.
                    <SU>27</SU>
                    <FTREF/>
                     The Exchange believes these proposed position and exercise limits are reasonable and appropriate. In considering the appropriate position and exercise limits for the Trust options, the Exchange reviewed the data presented by ISE in the ISE Approval. In the ISE Approval, ISE considered the Trust's market capitalization and average daily volume (“ADV”) against those of other underlying securities, as well as the proposed position and exercise limit in relation to other options. In measuring the Trust against other securities, ISE aggregated market capitalization and volume data for securities that have defined position limits utilizing data from The Options Clearing Corporations (“OCC”).
                    <SU>28</SU>
                    <FTREF/>
                     ISE also considered the trading volume for the Trust in terms of daily and notional volumes during the period of time the Trust has been trading from July 23, 2024 through December 14, 2024. The average daily volume for this time period is 5,302,533 shares and the average notional volume for this time period is $127,825,276.00. The Trust had 93,352 shareholders.
                    <SU>29</SU>
                    <FTREF/>
                     ISE indicated both the average daily volume and the average notional volume experienced an uptick at launch (which can be typical for anticipated product launches) then levelled off for several months. Renewed growth in the cryptocurrency market caused increased growth beginning in early November 2024.
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         Cboe Options is contemporaneously submitting a nearly identical rule filing pending with the Commission to amend Cboe Options Rule 8.30, Interpretation and Policy .10 to establish a position and exercise limit for Trust options of 25,000 (“Cboe Trust Proposal”). If the Commission approves the Cboe Trust Proposal, the position and exercise limits in that filing would then apply to the Exchange.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         ISE represented these computations were based on OCC data from October 22, 2024, and that data displaying zero values in market capitalization or ADV were removed.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         ISE represented it obtained this number from Broadridge Financial Solutions, Inc. on December 19, 2024.
                    </P>
                </FTNT>
                <P>
                    ISE reviewed the market capitalization and ADV of 3,930 options on single stock securities excluding ETFs.
                    <SU>30</SU>
                    <FTREF/>
                     Next, ISE aggregated this data based on market capitalization and ADV and grouped option symbols by position limit utilizing statistical thresholds for ADV and market capitalization for each position limit category (
                    <E T="03">i.e.</E>
                     25,000, 50,000 to 65,000, 75,000, 100,000 to less than 250,000, 250,000 to less than 500,000, 500,000 to 1,000,000 and greater than 1,000,000). Cboe Options Rule 8.30 sets out position limits for various contracts. For example, like ISE, a 25,000 contract limit applies to those options having an underlying security that does not meet the requirements for a higher options contract limit. ISE indicated it performed this exercise to demonstrate the Trust's position limit relative to other options symbols in terms of market capitalization and ADV. For reference the market capitalization for the Trust was 1.16 billion 
                    <SU>31</SU>
                    <FTREF/>
                     with an ADV, for the preceding three months prior to October 22, 2024, of greater than 2.99 million shares. By comparison, other options symbols with similar market capitalization and ADV have a position limit of 50,000 contracts or 75,000 contracts.
                    <SU>32</SU>
                    <FTREF/>
                     From a 90-day ADV perspective, ISE reviewed statistics that indicated that the Trust had a 90-day ADV greater than each of the stocks in the 100,000 contracts to 249,000 contracts range. Therefore, the proposed 25,000 same side position and exercise limits for options on the Trust are conservative.
                </P>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         The Trust has one asset and therefore is not comparable to a broad based ETF where there are typically multiple components.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         ISE acquired this figure as of October 22, 2024. See 
                        <E T="03">https://www.ishares.com/us/products/337614/ishares-ethereum-trust-etf.</E>
                         The global supply of ether grows each day ether are minted.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         ISE determined the median market capitalization for 50,000 contracts was 788,000,000 million and the median market capitalization for 75,000 contracts was 1,037,000 billion. Further, placing the Trust at 50,000 contracts would rank it in the 59th percentile in market capitalization and placing the Trust at 75,000 contracts would rank it in the 46th percentile in market capitalization.
                    </P>
                </FTNT>
                <P>
                    Second, ISE reviewed the Trust's data relative to the market capitalization of the entire ether market in terms of 
                    <PRTPAGE P="16406"/>
                    exercise risk and availability of deliverables. Utilizing data as of October 22, 2024, there were 120,392,960 Ethereum in circulation. The price of Ethereum on October 22, 2024, was $2,620 per coin which equates to a market capitalization of greater than $315 billion US dollars. If a position limit of 25,000 options were considered (the position limit that would be typically assigned based upon data), the exercisable risk would represent less than 4.3524% of the outstanding shares of the Trust.
                    <SU>33</SU>
                    <FTREF/>
                     Since the Trust has a creation and redemption process managed through the issuer, we can additionally compare the position limit sought to the total market capitalization of the entire Ethereum market. In this case, the exercisable risk represented by 25,000 options on the Trust would be less than 0.03% of the market capitalization of all outstanding ether. Assuming a scenario where all 25,000 options on ether shares were exercised given the proposed 25,000 per same side position limit, this would have a virtually unnoticed impact on the entire ether market. This analysis demonstrates that the proposed 25,000 per same side position limit (and exercise limit) is conservative and appropriate for options on the Trust.
                </P>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         The 4.4% was calculated as follows: 2,500,000 (exercisable stock from position limit)/57,440,000 (shares outstanding on October 22, 2024) = 4.35237%.
                    </P>
                </FTNT>
                <P>
                    Third, ISE reviewed the proposed position limit by comparing it to position limits for derivative products regulated by the Commodity Futures Trading Commission (“CFTC”). While the CFTC, through the relevant Designated Contract Markets, only regulates options positions based upon delta equivalents (creating a less stringent standard), we examined equivalent ether futures position limits. In particular, ISE looked at the CME Ethereum futures contract 
                    <SU>34</SU>
                    <FTREF/>
                     that has a position limit of 8,000 futures.
                    <SU>35</SU>
                    <FTREF/>
                     On October 22, 2024, CME ether futures settled at $2,629. Using a contract multiplier of $50, a position limit of 8,000 futures would have a notional value $1.0516 billion (8,000 × $50 × $2,629). Using an October 22, 2024, share price of $19.91 for shares of the Trust, a futures position of 8,000 contracts, with a notional value of $1.0516 billion dollars would equate to an options position of 528,176 contracts ($1.0516 billion (notional value of 8,000 Ethereum futures contracts)/$19.91 (price of the Trust shares) = 52,817,679 (Trust shares)/100 (the number of shares represented by one options contract)) = 528,176 options contracts. Because substantial sums of any distributed options portfolio are likely to be out of the money on expiration, an options position limit equivalent to the CME position limit for Ethereum (considering that all options deltas are &lt;= 1.00) should be a bit higher than the CME implied 528,176 contract limit.
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         CME Ether Futures are described in Chapter 350 of CME's Rulebook.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook, Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <P>
                    The Exchange notes, unlike options contracts, CME position limits are calculated on a net futures-equivalent basis by contract and include contracts that aggregate into one or more base contracts according to an aggregation ratio(s).
                    <SU>36</SU>
                    <FTREF/>
                     Therefore, if a portfolio includes positions in options on futures, CME would aggregate those positions into the underlying futures contracts in accordance with a table published by CME on a delta equivalent value for the relevant spot month, subsequent spot month, single month and all month position limits.
                    <SU>37</SU>
                    <FTREF/>
                     If a position exceeds position limits because of an option assignment, CME permits market participants to liquidate the excess position within one business day without being considered in violation of its rules. Additionally, if at the close of trading, a position that includes options exceeds position limits for futures contracts, when evaluated using the delta factors as of that day's close of trading but does not exceed the limits when evaluated using the previous day's delta factors, then the position shall not constitute a position limit violation. Considering CME's position limits on futures for Ethereum, the Exchange believes that that the proposed same side position limits are more than appropriate for the Trust options.
                </P>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         
                        <E T="03">See</E>
                         CME Rulebook Chapter 5, Position Limit, Position Accountability and Reportable Level Table in the Interpretations &amp; Special Notices.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>37</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>In analyzing the proposed position limit for options on the Trust, ISE also considered the supply of ether. Specifically, ISE examined the number of market participants with a position limit of 25,000 contracts that would need to exercise in unison to put the underlying asset under stress. In the case of options on ether, the proposed 25,000 same side position and exercise limit effectively restricts a market participant from holding positions that could be exercised in excess of 2,500,000 shares of the Trust. Utilizing data from October 22, 2024, the Trust had 57,440,000 shares outstanding, therefore 22.976 participants would have to simultaneously exercise their position limits in order to create a scenario that may put the underlying asset (shares of the Trust) under stress. The Exchange notes that historically, from observation only, it appears that no more than five market participants holding options positions in any single security have exercised in unison in any option. As unlikely an occurrence as all market participants exercising their positions in unison would be, if it were to occur, it should be noted that even such an occurrence would not likely put the Trust under stress as economic incentives, would induce the creation of more shares through the ETF creation and redemption process.</P>
                <P>
                    Further, given that the current global supply of Ethereum, the underlying asset of the Trust, is 120,392,960 
                    <SU>38</SU>
                    <FTREF/>
                     coins and each Ethereum coin can currently be exchanged (Ethereum to USD and then USD to Trust shares) for 131.6 shares of the Trust another 15,843,979,598 shares of the Trust could be created by the underlying ETF. In addition, as of October 22, 2024, a 25,000 contract position limit for options on the Trust would represent less than 4.3524% of the outstanding shares of the Trust (2,500,000 (position limit exercise)/57,440,000 (shares outstanding of the Trust on October 22, 2024)) = 4.3524%.
                    <SU>39</SU>
                    <FTREF/>
                     Also, as of October 22, 2024, a 25,000 contract position limit for options on the Trust would represent less than .01578% of the global supply of ether (2,500,000 (position limit exercise)/120,392,960 (number of ether) × 131.6 (Trust shares per ether)) = .01578%.
                </P>
                <FTNT>
                    <P>
                        <SU>38</SU>
                         This figure was acquired as of October 22, 2024. 
                        <E T="03">See https://www.ishares.com/us/products/337614/ishares-ethereum-trust-etf.</E>
                         The global supply of ether grows each day ether are minted.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>39</SU>
                         
                        <E T="03">See https://coinmarketcap.com/currencies/ethereum/.</E>
                    </P>
                </FTNT>
                <P>
                    Today, the Exchange has an adequate surveillance program in place for options. The Exchange intends to apply those same program procedures to options on the Trust that it applies to the Exchange's other options products, including options on Fund Shares.
                    <SU>40</SU>
                    <FTREF/>
                     The Exchange's market surveillance staff would have access to the surveillances conducted by Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe EDGX Exchange, Inc.
                    <SU>41</SU>
                    <FTREF/>
                     with respect to the Trust and would review 
                    <PRTPAGE P="16407"/>
                    activity in the underlying Trust when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the Intermarket Surveillance Group (“ISG”) under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition to obtaining information from its affiliated markets, the Exchange would be able to obtain information regarding trading in shares of the Trust from their primary listing markets and from other markets that trade shares of the Trust through ISG. In addition, the Exchange has a Regulatory Services Agreement with the Financial Industry Regulatory Authority (“FINRA”) for certain market surveillance, investigation and examinations functions. Pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate amongst themselves and FINRA responsibilities to conduct certain options-related market surveillance that are common to rules of all options exchanges.
                    <SU>42</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>40</SU>
                         The surveillance program includes surveillance patterns for price and volume movements as well as patterns for potential manipulation (
                        <E T="03">e.g.,</E>
                         spoofing and marking the close).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>41</SU>
                         Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGA Exchange, Inc., and Cboe EDGX Exchange, Inc. are affiliated markets of the Exchange.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>42</SU>
                         Section 19(g)(1) of the Act, among other things, requires every self-regulatory organization (“SRO”) registered as a national securities exchange or national securities association to comply with the Act, the rules and regulations thereunder, and the SRO's own rules, and, absent reasonable justification or excuse, enforce compliance by its members and persons associated with its members. 
                        <E T="03">See</E>
                         15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section 17(d)(1) of the Act allows the Commission to relieve an SRO of certain responsibilities with respect to members of the SRO who are also members of another SRO (“common members”). Specifically, Section 17(d)(1) allows the Commission to relieve an SRO of its responsibilities to: (i) receive regulatory reports from such members; (ii) examine such members for compliance with the Act and the rules and regulations thereunder, and the rules of the SRO; or (iii) carry out other specified regulatory responsibilities with respect to such members.
                    </P>
                </FTNT>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs,
                    <SU>43</SU>
                    <FTREF/>
                     “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the [CME] via their common membership in ISG. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME Ether futures market.” 
                    <SU>44</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ethereum ETPs].” 
                    <SU>45</SU>
                    <FTREF/>
                     In light of surveillance measures related to both options and futures as well as the underlying Trust,
                    <SU>46</SU>
                    <FTREF/>
                     the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust.
                </P>
                <FTNT>
                    <P>
                        <SU>43</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 100224 (May 23, 2024), 89 FR 46937 (May 30, 2024) (SR-NYSEArca-2023-70; SR-NYSEArca-2024-31; SR-NASDAQ-2023-045; SR-CboeBZX-2023-069; SR-CboeBZX-2023-070; SR-CboeBZX-2023-087; SR-CboeBZX-2023-095; and SR-CboeBZX-2024-018) (Order Granting Accelerated Approval of Proposed Rule Changes, as Modified by Amendments Thereto, to List and Trade Shares of Ether-Based Exchange-Traded Products) (“Ethereum ETP Approval Order”).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>44</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, at 46938 (footnotes excluded).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>45</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, at 46941 (footnote excluded).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>46</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order.
                    </P>
                </FTNT>
                <P>Finally, quotation and last sale information for ETFs is available via the Consolidated Tape Association (“CTA”) high speed line. Quotation and last sale information for such securities is also available from the exchange on which such securities are listed. Quotation and last sale information for options on the Trust will be available via Options Price Reporting Authority (“OPRA”) and major market data vendors. 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 the Trust up to the number of expirations currently permissible under the Rules.</P>
                <P>
                    The Exchange believes that offering options on the Trust will benefit investors by providing them with an additional, relatively lower cost investing tool to gain exposure to the price of Ethereum and hedging vehicle to meet their investment needs in connection with Ethereum-related products and positions. The Exchange expects investors will transact in options on the Trust in the unregulated over-the-counter (“OTC”) options market,
                    <SU>47</SU>
                    <FTREF/>
                     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 positions; (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 Trust 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 Fund Shares that hold financial instruments, money market instruments, precious metal commodities, or Bitcoin on which the Exchange may already list and trade options are trusts structured in substantially the same manner as the Trust 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 Fund Share options, including Fund Shares that hold commodities (
                    <E T="03">i.e.,</E>
                     precious metals and Bitcoin) that it currently lists and trades on the Exchange.
                </P>
                <FTNT>
                    <P>
                        <SU>47</SU>
                         The Exchange understands from customers that investors have historically transacted in options on Fund Shares in the OTC options market if such options were not available for trading in a listed environment.
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that applicable Exchange rules will require that customers receive appropriate disclosure before trading options in the Trust.
                    <SU>48</SU>
                    <FTREF/>
                     Further, brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>49</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>48</SU>
                         
                        <E T="03">See</E>
                         Rules 26.2(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>49</SU>
                         
                        <E T="03">See</E>
                         Rule 26.4.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes the proposed rule change is consistent with the Securities Exchange Act of 1934 (the “Act”) and the rules and regulations thereunder applicable to the Exchange and, in particular, the requirements of Section 6(b) of the Act.
                    <SU>50</SU>
                    <FTREF/>
                     Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) 
                    <SU>51</SU>
                    <FTREF/>
                     requirements that the rules of an exchange be designed to prevent fraudulent and manipulative acts and practices, to promote just and equitable principles of trade, to foster cooperation and coordination with persons engaged in regulating, clearing, settling, processing information with respect to, and facilitating transactions in 
                    <PRTPAGE P="16408"/>
                    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) 
                    <SU>52</SU>
                    <FTREF/>
                     requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.
                </P>
                <FTNT>
                    <P>
                        <SU>50</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>51</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>52</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>In particular, the Exchange believes that the proposal to list and trade options on the Trust 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 the Trust will provide investors with a greater opportunity to realize the benefits of utilizing options on an ETF based on spot Ethereum, including cost efficiencies and increased hedging strategies. The Exchange believes that offering options on a competitively priced ETF based on spot Ethereum will benefit investors by providing them with an additional, relatively lower-cost risk management tool, allowing them to manage, more easily, their positions and associated risks in their portfolios in connection with exposure to spot Ethereum. Additionally, the Exchange's offering of Trust 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. Today, the Exchange lists options on other commodity (including Ethereum) ETFs structured as a trust, which essentially offer the same objectives and benefits to investors, and for which the Exchange has not identified any issues with the continued listing and trading of options on those ETFs.</P>
                <P>
                    The Exchange also believes the proposal to permit options on the Trust will remove impediments to and perfect the mechanism of a free and open market and a national market system, because options on the Trust will comply with current Exchange Rules. Options on the Trust must satisfy the initial listing standards and continued listing standards currently in the Rules, applicable to options on all ETFs, including options on other commodity ETFs already deemed appropriate for options trading on the Exchange pursuant to Rule 19.3(i). Position and exercise limits for options on ETFs, including options on the Trust, are determined pursuant to Rules 18.7 and 18.9.
                    <SU>53</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>53</SU>
                         Rule 18.7(a)(1) provides that no Options Member shall make, for any account in which it has any interest or for the account of any Customer, an opening transaction on any exchange if the Options Member has reason to believe that as a result of such transaction the Options Member or its Customer would, acting alone or in concert with others, directly or indirectly, exceed the applicable position limit fixed by Cboe Options. Rule 18.9(a)(1) provides that no Options Member shall exercise, for any account in which it has an interest or for the account of any Customer, a long position in any options contract where such Options Member or Customer, acting alone or in concert with others, directly or indirectly, has or will have exceeded the applicable exercise limit fixed from time to time by Cboe Options for any options contract traded on EDGX Options and Cboe Options. 
                        <E T="03">See also</E>
                         Cboe Options Rules 8.30 and 8.42.
                    </P>
                </FTNT>
                <P>Additionally, as demonstrated above, the Trust is characterized by a substantial number of shares that are widely held and actively traded. Further, Rules that currently govern the listing and trading of options on ETFs, including permissible expirations, strike prices, minimum increments, position and exercise limits (as proposed herein), and margin requirements, will govern the listing and trading of options on the Trust.</P>
                <P>The Exchange believes the proposed position and exercise limits are designed to prevent fraudulent and manipulative acts and practices and promote just and equitable principles of trade, as they are designed to address potential manipulative schemes and adverse market impacts surrounding the use of options, such as disrupting the market in the security underlying the options. The proposed position and exercise limits for options on each of the Trust are 25,000 contracts. These position and exercise limits are the lowest position and exercise limits available in the options industry, are extremely conservative and more than appropriate given the Trust's market capitalization, ADV, and high number of outstanding shares. The proposed position limit, and exercise limit, is consistent with the Act as it addresses concerns related to manipulation and protection of investors because, as demonstrated above, the position limit (and exercise limit) is extremely conservative and more than appropriate given the Trust is actively traded. In support of the proposed position and exercise limits for options on the Trust are 25,000 contracts, the Exchange is citing the in depth analysis ISE did in the ISE Approval. As noted above, in ISE Approval, ISE considered the: (1) Trust's market capitalization and ADV, and proposed position limit in relation to other securities; (2) market capitalization of the entire Ethereum market in terms of exercise risk and availability of deliverables; (3) proposed position limit by comparing it to position limits for derivative products regulated by the CFTC; and (4) supply of Ethereum. Based on the Exchange's review of these analyses, the Exchange believes that setting position and exercise limits for options on the Trust at 25,000 contracts is more than appropriate. The proposed position and exercise limits reasonably and appropriately balance the liquidity provisioning in the market against the prevention of manipulation. The Exchange believes these proposed limits are effectively designed to prevent an individual customer or entity from establishing options positions that could be used to manipulate the market of the underlying as well as the Ethereum market.</P>
                <P>
                    The Exchange represents that it has the necessary systems capacity to support the new Trust options. As discussed above, 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 Fund Share options, including Trust options. The Exchange's existing surveillance and reporting safeguards are designed to deter and detect possible manipulative behavior which might arise from listing and trading options on ETFs and ETPs, such as (existing) precious metal-commodity backed ETP options as well as the proposed options on the Trust. The Exchange believes that its surveillance procedures are adequate to properly monitor the trading of options on the Trust in all trading sessions and to deter and detect violations of Exchange rules. Specifically, the Exchange's market surveillance staff will have access to surveillances that it conducts, and that FINRA conducts on its behalf, with respect to the Trust and, as appropriate, would review activity in the underlying Fund when conducting surveillances for market abuse or manipulation in the options on the Trust. Additionally, the Exchange is a member of the ISG under the Intermarket Surveillance Group Agreement. ISG members work together to coordinate surveillance and investigative information sharing in the stock, options, and futures markets. In addition, the Exchange has a Regulatory Services Agreement with the FINRA and as noted herein, pursuant to a multi-party 17d-2 joint plan, all options exchanges allocate regulatory responsibilities to FINRA to conduct 
                    <PRTPAGE P="16409"/>
                    certain options-related market surveillances. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on the Trust.
                </P>
                <P>
                    The underlying shares of spot Ethereum ETPs, including the Trust, are also subject to safeguards related to addressing market abuse and manipulation. As the Commission stated in its order approving proposals of several exchanges to list and trade shares of spot Ethereum-based ETPs, “[e]ach Exchange has a comprehensive surveillance-sharing agreement with the CME via their common membership in the Intermarket Surveillance Group. This facilitates the sharing of information that is available to the CME through its surveillance of its markets, including its surveillance of the CME ether futures market.” 
                    <SU>54</SU>
                    <FTREF/>
                     The Exchange states that, given the consistently high correlation between the CME Ethereum futures market and the spot Ethereum market, as confirmed by the Commission through robust correlation analysis, the Commission was able to conclude that such surveillance sharing agreements could reasonably be “expected to assist in surveilling for fraudulent and manipulative acts and practices in the specific context of the [Ether ETPs].” 
                    <SU>55</SU>
                    <FTREF/>
                     In light of the foregoing, the Exchange believes that existing surveillance procedures are designed to deter and detect possible manipulative behavior which might potentially arise from listing and trading the proposed options on the Trust. Further, the Exchange will implement any new surveillance procedures it deems necessary to effectively monitor the trading of options on Ethereum ETPs.
                </P>
                <FTNT>
                    <P>
                        <SU>54</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46938.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>55</SU>
                         
                        <E T="03">See</E>
                         Ethereum ETP Approval Order, 89 FR at 46941.
                    </P>
                </FTNT>
                <P>
                    Finally, the Exchange notes that this proposal 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 applicable Exchange rules will require that customers receive appropriate disclosure before trading options in the Trust 
                    <SU>56</SU>
                    <FTREF/>
                     and will require that brokers opening accounts and recommending options transactions must comply with relevant customer suitability standards.
                    <SU>57</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>56</SU>
                         
                        <E T="03">See</E>
                         Rules 26.2(b) and (e).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>57</SU>
                         
                        <E T="03">See</E>
                         Rule 26.4.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>
                    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 Trust options will be equally available to all market participants who wish to trade such options and will trade generally in the same manner as other options. The Rules that currently apply to the listing and trading of all Fund Share options on the Exchange, including, for example, Rules that govern listing criteria, expirations, exercise prices, minimum increments, margin requirements, customer accounts, and trading halt procedures will apply to the listing and trading of the Trust options on the Exchange in the same manner as they apply to other options on all other Fund Shares that are listed and traded on the Exchange. Also, and as stated above, the Exchange already lists options on other commodity-based Fund Shares (including Bitcoin-based).
                    <SU>58</SU>
                    <FTREF/>
                     Further, the Trust would need to satisfy the maintenance listing standards set forth in the Exchange Rules in the same manner as any other Fund Share for the Exchange to continue listing options on them.
                </P>
                <FTNT>
                    <P>
                        <SU>58</SU>
                         
                        <E T="03">See</E>
                         Rule 19.3(i).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that the proposal to list and trade options on the Trust 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 the Trust 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. The Exchange notes that listing and trading Trust 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.</P>
                <P>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 Trust 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 Ethereum prices and Ethereum-related products and positions on a listed options exchange.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 
                    <SU>59</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>60</SU>
                    <FTREF/>
                     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 
                    <SU>61</SU>
                    <FTREF/>
                     and subparagraph (f)(6) of Rule 19b-4 thereunder.
                    <SU>62</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>59</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>60</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>61</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>62</SU>
                         17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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 Commission has waived the pre-filing requirement.
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>63</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>64</SU>
                    <FTREF/>
                     the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the 
                    <PRTPAGE P="16410"/>
                    Commission waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission previously approved the listing of options on the iShares Ethereum Trust.
                    <SU>65</SU>
                    <FTREF/>
                     The Exchange has provided information regarding the underlying iShares Ethereum Trust, including, among other things, information regarding trading volume, the number of shareholders, and the market capitalization of the iShares Ethereum Trust. The proposal also establishes position and exercise limits for options on the iShares Ethereum Trust and provides information regarding the surveillance procedures that will apply to iShares Ethereum Trust options. The Commission believes that waiver of the operative delay could benefit investors by providing an additional venue for trading iShares Ethereum Trust options. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>66</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>63</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>64</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>65</SU>
                         
                        <E T="03">See</E>
                         ISE Approval, 
                        <E T="03">supra</E>
                         note 5.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>66</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-CboeEDGX-2025-029 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-CboeEDGX-2025-029. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-CboeEDGX-2025-029 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>67</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>67</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06508 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102839; File No. SR-BOX-2025-07]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; BOX Exchange LLC; Notice of Filing of Proposed Rule Change To Amend Rule 5055 To Allow for Cash Settlement of Certain FLEX Equity Options</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that on April 7, 2025, BOX Exchange LLC (the “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.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78a.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>
                    The Exchange proposes to amend Rule 5055 (FLEX Equity Options). Specifically, the Exchange proposes to amend Rules 5055(e) and (i) to allow for cash settlement of certain FLEX Equity Options. 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 
                    <E T="03">https://rules.boxexchange.com/rulefilings.</E>
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>
                    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.
                    <PRTPAGE P="16411"/>
                </P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend BOX Rules 5055(e) and (i) related to FLEX Equity Options. This is a competitive filing that is based on a proposal recently submitted by Cboe Exchange, Inc. (“CBOE”).
                    <SU>3</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 98044 (August 2, 2023), 88 FR 53548 (August 8, 2023) (SR-CBOE-2023-036) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Allow Certain Flexible Exchange Equity Options To Be Cash Settled). The Exchange notes that the CBOE proposal is based on a 2020 proposal from NYSE American LLC (“NYSE American”). 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 88131 (February 5, 2020), 85 FR 7806 (February 11, 2020) (SR-NYSEAMER-2019-38) (Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Allow Certain Flexible Equity Options To Be Cash Settled).
                    </P>
                </FTNT>
                <P>
                    FLEX Equity Options are customized equity contracts that allow investors to tailor contract terms for exchange-listed equity options. The Exchange proposes to amend Rule 5055(e) to allow for cash settlement of certain FLEX Equity Options.
                    <SU>4</SU>
                    <FTREF/>
                     Generally, FLEX Equity Options are settled by physical delivery of the underlying security.
                    <SU>5</SU>
                    <FTREF/>
                     As proposed, FLEX Equity Options where the underlying security is an Exchange-Traded Fund (“FLEX ETF Options”) would be permitted to be settled by delivery in cash if the underlying security meets prescribed criteria. The Exchange notes that cash-settled FLEX ETF Options will be subject to the same trading rules and procedures that currently govern the trading of other FLEX Equity Options on BOX, with the exception of the rules to accommodate the cash-settlement feature proposed in this rule filing.
                </P>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         A “FLEX Equity Option” is an option on a specified underlying equity security that is subject to Rule 5055. 
                        <E T="03">See</E>
                         BOX Rule 5055(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         BOX Rule 5055(e)(3).
                    </P>
                </FTNT>
                <P>To permit cash settlement of certain FLEX ETF Options, the Exchange proposes to add paragraph (i) to Rule 5055(e)(3). Proposed Rule 5055(e)(3)(i) would provide that the exercise settlement for a FLEX ETF Option may be by physical delivery of the underlying Exchange-Traded Fund (“ETF”) or by delivery in cash if the underlying security, measured over the prior six-month period, has an average daily notional value of $500 million or more and a national average daily volume (ADV) of at least 4,680,000 shares.</P>
                <P>
                    The Exchange also proposes to add the following language to Rule 5055(e)(1), “For the avoidance of doubt, a FLEX Equity Option overlying an ETF (cash- or physically settled) may not be the same type (put or call) and may not have the same exercise style, expiration date, and exercise price as a non-FLEX Equity Option overlying the same ETF.” 
                    <SU>6</SU>
                    <FTREF/>
                     In other words, regardless of whether a FLEX Equity Option overlying an ETF is cash- or physically settled, at least one of the exercise style (
                    <E T="03">i.e.</E>
                     American-style or European-style), expiration date, and exercise price of that FLEX Option must differ from those terms of a non-FLEX Option overlying the same ETF in order to list such a FLEX Equity Option. For example, suppose a non-FLEX SPY option (which is physically settled and American-style) with a September expiration and exercise price of 475 is listed for trading. A FLEX Trader could not submit an order to trade a FLEX SPY option that is cash-settled (or physically settled) and American-style with the same September expiration date and exercise price of 475.
                </P>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 5055(e)(1). The Exchange reiterates that regardless of whether a FLEX Equity Option is cash- or physically settled, each will be subject to the same trading rules and procedures that currently govern the trading of FLEX Equity Options on BOX, with the exception of the rules to accommodate the cash-settlement feature proposed in this rule filing.
                    </P>
                </FTNT>
                <P>
                    The Exchange also proposes new sub-paragraph (a) to Rule 5055(e)(3)(i), which would provide that the Exchange will determine bi-annually the underlying securities that satisfy the notional value and trading volume requirements in proposed Rule 5055(e)(3)(i) by using trading statistics for the previous six-months.
                    <SU>7</SU>
                    <FTREF/>
                     The proposed rule would further provide that the Exchange will permit cash settlement as a contract term on no more than 50 underlying ETFs that meet the criteria in Rule 5055(e)(3)(i), and that if more than 50 underlying ETFs satisfy the notional value and trading volume requirements, the Exchange would select the top 50 ETFs that have the highest average daily volume.
                    <SU>8</SU>
                    <FTREF/>
                     Proposed new sub-paragraph (b) to Rule 5055(e)(3)(i) would further provide that if the Exchange determines pursuant to the bi-annual review that an underlying ETF ceases to satisfy the requirements under Rule 5055(e)(3)(i), any new position overlying such ETF entered into will be required to have exercise settlement by physical delivery and any open cash-settled FLEX ETF Option positions may be traded only to close the position.
                    <SU>9</SU>
                    <FTREF/>
                     The Exchange believes it is appropriate to introduce cash settlement as an alternative contract term to the select group of ETFs because they are among the most highly liquid and actively-traded securities. As described more fully below, the Exchange believes that the deep liquidity and robust trading activity in the ETFs identified by the Exchange as meeting the criteria mitigate against historic concerns regarding susceptibility to manipulation.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 5055(e)(3)(i). The Exchange plans to conduct the bi-annual review on January 1 and July 1 of each year. The results of the bi-annual review will be announced via a Notice and any new securities that qualify would be permitted to have cash settlement as a contract term beginning on February 1 and August 1 of each year.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 5055(e)(3)(i)(a). The Exchange notes that, according to Rule 5055(e)(2)(i), it will not authorize for trading a FLEX Equity Option class (either cash-settled or physically-settled) on the iShares Bitcoin Trust, the Grayscale Bitcoin Trust, the Grayscale Bitcoin Mini Trust, the Bitwise Bitcoin ETF, the Fidelity Wise Origin Bitcoin Fund, or the ARK 21Shares Bitcoin ETF. If the Exchange determines to allow FLEX trading on such options at a later date, it will do so by submitting a 19b-4 rule filing with the Commission.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 5055(e)(3)(i)(b). A Participant that is acting as a Market Maker may enter into an opening transaction in order to facilitate closing transactions of another market participant in option series that are restricted to closing-only transactions. Consistent with a Market Maker's duty to maintain fair and orderly markets under Rule 8040, a Market Maker in cash-settled FLEX ETF Options can enter into an opening transaction to facilitate closing only transactions of another market participant in cash-settled FLEX ETF Option series that are restricted to closing-only transactions.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Characteristics of ETFs</HD>
                <P>
                    ETFs are funds that have their value derived from assets owned. The net asset value (“NAV”) of an ETF is a daily calculation that is based off the most recent closing prices of the assets in the fund and an actual accounting of the total cash in the fund at the time of calculation. The NAV of an ETF is calculated by taking the sum of the assets in the fund, including any securities and cash, subtracting out any liabilities, and dividing that by the number of shares outstanding. Additionally, each ETF is subject to a creation and redemption mechanism to ensure the price of the ETF does not fluctuate too far away from its NAV, which mechanisms reduce the potential for manipulative activity. Each business day, ETFs are required to make publicly available a portfolio composition file that describes the makeup of their creation and redemption “baskets” (
                    <E T="03">i.e.,</E>
                     a specific list of names and quantities of securities or other assets designed to track the performance of the portfolio as a whole). ETF shares are created when an Authorized Participant, typically a market maker or other large institutional investor, deposits the daily creation basket or cash with the ETF issuer. In return for the creation basket or cash (or 
                    <PRTPAGE P="16412"/>
                    both), the ETF issues to the Authorized Participant a “creation unit” that consists of a specified number of ETF shares. For instance, IWM is designed to track the performance of the Russell 2000 Index. An Authorized Participant will purchase all the Russell 2000 constituent securities in the exact same weight as the index prescribes, then deliver those shares to the ETF issuer. In exchange, the ETF issuer gives the Authorized Participant a block of equally valued ETF shares, on a one-for-one fair value basis. This process can also work in reverse. A redemption is achieved when the Authorized Participant accumulates a sufficient number of shares of the ETF to constitute a creation unit and then exchanges these ETF shares with the ETF issuer, thereby decreasing the supply of ETF shares in the market.
                </P>
                <P>
                    The principal, and perhaps most important, feature of ETFs is their reliance on an “arbitrage function” performed by market participants that influences the supply and demand of ETF shares and, thus, trading prices relative to NAV. As noted above, new ETF shares can be created and existing shares redeemed based on investor demand; thus, ETF supply is open-ended. This arbitrage function helps to keep an ETF's price in line with the value of its underlying portfolio, 
                    <E T="03">i.e.,</E>
                     it minimizes deviation from NAV. Generally, in the Exchange's view, the higher the liquidity and trading volume of an ETF, the more likely the price of the ETF will not deviate from the value of its underlying portfolio, making such ETFs less susceptible to price manipulation.
                </P>
                <HD SOURCE="HD3">Trading Data for the ETFs Proposed for Cash Settlement</HD>
                <P>
                    The Exchange believes that average daily notional value is an appropriate proxy for selecting underlying securities that are not readily susceptible to manipulation for purposes of establishing a settlement price. Average daily notional value considers both the trading activity and the price of an underlying security. As a general matter, the more expensive an underlying security's price, the less cost-effective manipulation could become. Further, manipulation of the price of a security encounters greater difficulty the more volume that is traded. To calculate average daily notional value (provided in the table below), the Exchange summed the notional value of each trade for each symbol (
                    <E T="03">i.e.,</E>
                     the number of shares times the price for each execution in the security) and divided that total by the number of trading days in the six-month period (from July 1, 2024 through December 31, 2024) reviewed by the Exchange.
                </P>
                <P>
                    Further, the Exchange proposes that qualifying ETFs also meet an ADV standard. The purpose for this second criteria is to prevent unusually expensive underlying securities from qualifying under the average daily notional value standard while not being one of the most actively traded securities. The Exchange believes an ADV requirement of 4,680,000 shares a day is appropriate because it represents average trading in the underlying ETF of 200 shares per second. While no security is immune from all manipulation, the Exchange believes that the combination of average daily notional value and ADV as prerequisite requirements would limit cash settlement of FLEX ETF Options to those underlying ETFs that would be less susceptible to manipulation in order to establish a settlement price. The Exchange believes that the proposed objective criteria would ensure that only the most robustly traded and deeply liquid ETFs would qualify to have cash settlement as a contract term. As provided in the table below, as of February 1, 2025, the Exchange would be able to provide cash settlement as a contract term for FLEX ETF Options on 43 underlying ETFs, as only this group of securities would currently meet the requirement of $500 million or more average daily notional value and a minimum ADV of 4,680,000 shares. The table below provides the list of the 43 ETFs that, as of February 1, 2025, would be eligible to have cash settlement as a contract term.
                    <SU>10</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         
                        <E T="03">See also https://www.nyse.com/trader-update/history#110000946628</E>
                         (NYSE American Options: Cash-Settled FLEX ETF Options Changes Beginning February 2025). The Exchange notes that for the period covering July 1, 2024, through December 31, 2024, the iShares Bitcoin Trust ETF met the requirements of $500 million or more average daily notional value and a minimum ADV of 4,680,000 shares. This ETF is not listed in the above table because as discussed above, the Exchange is prohibiting FLEX trading in options on iShares Bitcoin Trust.
                    </P>
                </FTNT>
                <GPOTABLE COLS="4" OPTS="L2,tp0,i1" CDEF="s25,r100,15,15">
                    <TTITLE> </TTITLE>
                    <BOXHD>
                        <CHED H="1">Symbol</CHED>
                        <CHED H="1">Security name</CHED>
                        <CHED H="1">
                            Average daily
                            <LI>notional value</LI>
                            <LI>(in dollars)</LI>
                            <LI>(7/1/24-12/31/24)</LI>
                        </CHED>
                        <CHED H="1">
                            Average daily
                            <LI>volume</LI>
                            <LI>(in shares)</LI>
                            <LI>(7/1/24-12/31/24)</LI>
                        </CHED>
                    </BOXHD>
                    <ROW>
                        <ENT I="01">AGG</ENT>
                        <ENT>iShares Core U.S. Aggregate Bond ETF</ENT>
                        <ENT>$808,220,262</ENT>
                        <ENT>8,159,745</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">BIL</ENT>
                        <ENT>SPDR Bloomberg 1-3 Month T-Bill ETF</ENT>
                        <ENT>668,203,827</ENT>
                        <ENT>7,295,621</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">EEM</ENT>
                        <ENT>iShares MSCI Emerging Markets ETF</ENT>
                        <ENT>1,196,024,008</ENT>
                        <ENT>27,259,214</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">EFA</ENT>
                        <ENT>iShares MSCI EAFE ETF</ENT>
                        <ENT>913,096,285</ENT>
                        <ENT>11,503,196</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">EMB</ENT>
                        <ENT>iShares J.P. Morgan USD Emerging Markets Bond ETF</ENT>
                        <ENT>519,974,363</ENT>
                        <ENT>5,703,325</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">EWZ</ENT>
                        <ENT>iShares MSCI Brazil ETF</ENT>
                        <ENT>574,345,566</ENT>
                        <ENT>20,807,973</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">FXI</ENT>
                        <ENT>iShares China Large-Cap ETF</ENT>
                        <ENT>1,539,214,623</ENT>
                        <ENT>50,493,373</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">GDX</ENT>
                        <ENT>VanEck Gold Miners ETF</ENT>
                        <ENT>746,385,541</ENT>
                        <ENT>19,509,726</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">GLD</ENT>
                        <ENT>SPDR Gold Shares</ENT>
                        <ENT>1,541,762,884</ENT>
                        <ENT>6,490,082</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">HYG</ENT>
                        <ENT>iShares iBoxx $ High Yield Corporate Bond ETF</ENT>
                        <ENT>2,723,382,829</ENT>
                        <ENT>34,489,566</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">IEF</ENT>
                        <ENT>iShares 7-10 Year Treasury Bond ETF</ENT>
                        <ENT>693,172,798</ENT>
                        <ENT>7,236,293</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">IEFA*</ENT>
                        <ENT>iShares Core MSCI EAFE ETF</ENT>
                        <ENT>548,012,194</ENT>
                        <ENT>7,418,223</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">IVV</ENT>
                        <ENT>iShares Core S&amp;P 500 ETF</ENT>
                        <ENT>3,187,805,763</ENT>
                        <ENT>5,519,115</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">IWM</ENT>
                        <ENT>iShares Russell 2000 ETF</ENT>
                        <ENT>6,488,405,961</ENT>
                        <ENT>29,367,233</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">IYR</ENT>
                        <ENT>iShares U.S. Real Estate ETF</ENT>
                        <ENT>517,305,688</ENT>
                        <ENT>5,312,072</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">KRE</ENT>
                        <ENT>SPDR S&amp;P Regional Banking ETF</ENT>
                        <ENT>848,054,666</ENT>
                        <ENT>14,491,828</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">KWEB</ENT>
                        <ENT>KraneShares CSI China Internet ETF</ENT>
                        <ENT>662,017,572</ENT>
                        <ENT>21,406,472</ENT>
                    </ROW>
                    <ROW>
                        <PRTPAGE P="16413"/>
                        <ENT I="01">LQD</ENT>
                        <ENT>iShares iBoxx $ Investment Grade Corporate Bond ETF</ENT>
                        <ENT>2,742,773,613</ENT>
                        <ENT>24,887,128</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">MSTU</ENT>
                        <ENT>T-Rex 2X Long MSTR Daily Target ETF</ENT>
                        <ENT>682,380,233</ENT>
                        <ENT>55,483,821</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">NVDL</ENT>
                        <ENT>GraniteShares 2x Long NVDA Daily ETF</ENT>
                        <ENT>1,324,611,353</ENT>
                        <ENT>20,697,044</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">QQQ</ENT>
                        <ENT>Invesco QQQ Trust</ENT>
                        <ENT>16,158,297,875</ENT>
                        <ENT>33,284,939</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">RSP</ENT>
                        <ENT>Invesco S&amp;P 500 Equal Weight ETF</ENT>
                        <ENT>1,079,579,663</ENT>
                        <ENT>6,151,579</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">SGOV *</ENT>
                        <ENT>iShares 0-3 Month Treasury Bond ETF</ENT>
                        <ENT>521,477,947</ENT>
                        <ENT>5,190,381</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">SLV</ENT>
                        <ENT>iShares Silver Trust</ENT>
                        <ENT>548,247,483</ENT>
                        <ENT>19,612,186</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">SMH</ENT>
                        <ENT>VanEck Semiconductor ETF</ENT>
                        <ENT>1,753,390,895</ENT>
                        <ENT>7,207,553</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">SOXL</ENT>
                        <ENT>Direxion Daily Semiconductor Bull 3x Shares</ENT>
                        <ENT>3,005,211,281</ENT>
                        <ENT>85,315,965</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">SOXS</ENT>
                        <ENT>Direxion Daily Semiconductor Bear 3x Shares</ENT>
                        <ENT>1,227,042,121</ENT>
                        <ENT>52,816,849</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">SPY</ENT>
                        <ENT>SPDR S&amp;P 500 ETF Trust</ENT>
                        <ENT>27,835,471,406</ENT>
                        <ENT>48,952,050</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">SQQQ</ENT>
                        <ENT>ProShares UltraPro Short QQQ</ENT>
                        <ENT>1,353,454,852</ENT>
                        <ENT>35,703,643</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">TLT</ENT>
                        <ENT>iShares 20+ Year Treasury Bond ETF</ENT>
                        <ENT>3,684,005,055</ENT>
                        <ENT>39,147,976</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">TNA</ENT>
                        <ENT>Direxion Daily Small Cap Bull 3X Shares</ENT>
                        <ENT>740,036,853</ENT>
                        <ENT>16,703,440</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">TQQQ</ENT>
                        <ENT>ProShares UltraPro QQQ</ENT>
                        <ENT>3,658,099,414</ENT>
                        <ENT>50,944,211</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">TSLL</ENT>
                        <ENT>Direxion Daily TSLA Bull 2X Shares</ENT>
                        <ENT>1,034,541,077</ENT>
                        <ENT>62,340,588</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">VCIT *</ENT>
                        <ENT>Vanguard Intermediate-Term Corporate Bond ETF</ENT>
                        <ENT>514,518,195</ENT>
                        <ENT>6,272,369</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">VOO</ENT>
                        <ENT>Vanguard S&amp;P 500 ETF</ENT>
                        <ENT>2,975,501,039</ENT>
                        <ENT>5,659,792</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">XBI</ENT>
                        <ENT>SPDR S&amp;P Biotech ETF</ENT>
                        <ENT>787,310,952</ENT>
                        <ENT>8,079,838</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">XLE</ENT>
                        <ENT>Energy Select Sector SPDR Fund</ENT>
                        <ENT>1,229,602,416</ENT>
                        <ENT>13,670,997</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">XLF</ENT>
                        <ENT>Financial Select Sector SPDR Fund</ENT>
                        <ENT>1,774,374,547</ENT>
                        <ENT>38,499,533</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">XLI</ENT>
                        <ENT>Industrial Select Sector SPDR Fund</ENT>
                        <ENT>1,046,350,609</ENT>
                        <ENT>7,937,500</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">XLK</ENT>
                        <ENT>Technology Select Sector SPDR Fund</ENT>
                        <ENT>1,057,040,276</ENT>
                        <ENT>4,719,573</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">XLP</ENT>
                        <ENT>Consumer Staples Select Sector SPDR Fund</ENT>
                        <ENT>791,220,748</ENT>
                        <ENT>9,807,344</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">XLU</ENT>
                        <ENT>Utilities Select Sector SPDR Fund</ENT>
                        <ENT>786,224,023</ENT>
                        <ENT>10,225,419</ENT>
                    </ROW>
                    <ROW>
                        <ENT I="01">XLV</ENT>
                        <ENT>Health Care Select Sector SPDR Fund</ENT>
                        <ENT>1,052,679,132</ENT>
                        <ENT>7,088,605</ENT>
                    </ROW>
                    <TNOTE>* BOX does not currently list options on VCIT, SGOV, and IEFA.</TNOTE>
                </GPOTABLE>
                <P>The Exchange believes that permitting cash settlement as a contract term for FLEX ETF Options for the ETFs in the above table would broaden the base of investors that use FLEX Equity Options to manage their trading and investment risk, including investors that currently trade in the over-the-counter (“OTC”) market for customized options, where settlement restrictions do not apply.</P>
                <P>
                    Today, equity options are settled physically at The Options Clearing Corporation (“OCC”), 
                    <E T="03">i.e.,</E>
                     upon exercise, shares of the underlying security must be assumed or delivered. Physical settlement may possess certain risks with respect to volatility and movement of the underlying security at expiration against which market participants may need to hedge. The Exchange believes cash settlement may be preferable to physical delivery in some circumstances as it does not present the same risk. If an issue with the delivery of the underlying security arises, it may become more expensive (and time consuming) to reverse the delivery because the price of the underlying security would almost certainly have changed. Reversing a cash payment, on the other hand, would not involve any such issue because reversing a cash delivery would simply involve the exchange of cash. Additionally, with physical settlement, market participants that have a need to generate cash would have to sell the underlying security while incurring the costs associated with liquidating their position as well as the risk of an adverse movement in the price of the underlying security.
                </P>
                <P>
                    The Exchange
                    <FTREF/>
                     notes that the Securities and Exchange Commission (the “Commission”) has previously approved or noticed as immediately effective rule filings of other exchanges that allowed for the trading of cash-settled options 
                    <SU>11</SU>
                     and, specifically, cash-settled FLEX ETF Options.
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         
                        <E T="03">See, e.g.,</E>
                         PHLX FX Options traded on Nasdaq PHLX LLC and S&amp;P 500® Index Options traded on CBOE. The Commission noticed as immediately effective, on a pilot basis, the listing and trading of RealDay
                        <E T="51">TM</E>
                         Options on the SPDR S&amp;P 500 Trust on BOX. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 79936 (February 2, 2017), 82 FR 9886 (February 8, 2017) (“RealDay Pilot Program”). The RealDay Pilot Program was extended until February 2, 2019. 
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 82414 (December 28, 2017), 83 FR 577 (January 4, 2018) (SR-BOX-2017-38). The RealDay Pilot Program was never implemented and RealDay
                        <E T="51">TM</E>
                         Options on the SPDR S&amp;P 500 Trust never traded on BOX. 
                        <E T="03">See also</E>
                         Securities Exchange Act Release Nos. 56251 (August 14, 2007), 72 FR 46523 (August 20, 2007) (SR Amex 2004-27) (Order approving listing of cash-settled Fixed Return Options (“FROs”)); and 71957 (April 16, 2014), 79 FR 22563 (April 22, 2014) (SR-NYSEMKT-2014-06) (Order approving name change from FROs to ByRDs and re-launch of these products, with certain modifications).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 98044 (August 2, 2023), 88 FR 53548 (August 8, 2023) (SR-CBOE-2023-036) (Notice of Filing and Immediate Effectiveness of a Proposed Rule Change to Allow Certain Flexible Exchange Equity Options To Be Cash Settled) and Securities Exchange Act Release No. 101720 (November 22, 2024), 89 FR 94986 (November 29, 2024) (SR-ISE-2024-12) (Notice of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, To Adopt Rules To List and Trade FLEX Options). 
                        <E T="03">See also</E>
                         Securities Exchange Act Release Nos. 88131 (February 5, 2020), 85 FR 7806 (February 11, 2020) (SR-NYSEAMER-2019-38) (Order Approving a Proposed Rule Change, as Modified by Amendment No. 1, to Allow Certain Flexible Equity Options To Be Cash Settled); and 97231 (March 31, 2023), 88 FR 20587 (April 6, 2023) (SR-NYSEAMER-2023-22) (Notice of Filing and Immediate Effectiveness of Proposed Change to Make a Clarifying Change to the Term Settlement Style Applicable to Flexible Exchange Options).
                    </P>
                </FTNT>
                <P>
                    With respect to position and exercise limits, cash-settled FLEX ETF Options would be subject to the position limits set forth in Rule 3120. Accordingly, the Exchange proposes new Rule 5055(i)(3), which would provide that a position in FLEX Equity Options where the underlying security is an ETF and that is settled in cash pursuant to Rule 5055(e)(3) would be subject to the position limits set forth in Rule 3120, and subject to the exercise limits set forth in Rule 3140. The proposed rule further states that positions in such cash-settled FLEX Equity Options shall be aggregated with positions in physically settled options on the same underlying ETF for the purpose of calculating the position limits set forth in Rule 3120, and the exercise limits set 
                    <PRTPAGE P="16414"/>
                    forth in Rule 3140.
                    <SU>13</SU>
                    <FTREF/>
                     Given that each of the underlying ETFs that would currently be eligible to have cash-settlement as a contract term have established position and exercise limits applicable to physically settled options, the Exchange believes it is appropriate for the same position and exercise limits to also apply to cash-settled options. Accordingly, of the 43 underlying securities that would currently be eligible to have cash settlement as a FLEX contract term, 28 would have a position limit of 250,000 contracts pursuant to Rule 3120(d).
                    <SU>14</SU>
                    <FTREF/>
                     Further, pursuant to IM-3120-2, seven would have a position limit of 500,000 contracts; four (EEM, FXI, IWM, and EFA) would have a position limit of 1,000,000 contracts; one (QQQ) would have a position limit of 1,800,000 contracts; and one (SPY) would have a position limit of 3,600,000.
                    <SU>15</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         
                        <E T="03">See</E>
                         proposed Rule 5055(i)(3). The aggregation of position and exercise limits would include all positions on physically settled FLEX Equity Options and Non-FLEX Equity Options on the same underlying ETFs.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         BOX Rule 3120(d)(5) provides that the position limit shall be 250,000 contracts for options: (i) on an underlying security that had trading volume of at least 100,000,000 shares during the most recent six-month trading period; or (ii) on an underlying security that had trading volume of at least 75,000,000 shares during the most recent six-month trading period and has at least 300,000,000 shares currently outstanding. Twenty-eight of the forty-three underlying ETFs currently meet the requirements under Rule 3120(d)(5). The Exchange notes that SMH position limits are temporarily 500,000 due to a stock split and will revert to 250,000 on June 20, 2025, and MSTU position limits are temporarily 2,500,000 due to a stock split and will revert to 250,000 on June 20, 2025, according to OCC. The Exchange also notes that SGOV is not currently available for trading in options.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         These were based on position limits as of January 30, 2025. Position limits are available at OCC—Position Limits (
                        <E T="03">theocc.com</E>
                        ). Position limits for ETFs are determined in accordance with the Exchange's Rules regarding position limits.
                    </P>
                </FTNT>
                <P>
                    The Exchange understands that cash-settled ETF options are currently traded in the OTC market by a variety of market participants, 
                    <E T="03">e.g.,</E>
                     hedge funds, proprietary trading firms, and pension funds.
                    <SU>16</SU>
                    <FTREF/>
                     These options are not fungible with the exchange listed options. The Exchange believes some of these market participants would prefer to trade comparable instruments on an exchange, where they would be cleared and settled through a regulated clearing agency. The Exchange expects that users of these OTC products would be among the primary users of exchange-traded cash-settled FLEX ETF Options. The Exchange also believes that the trading of cash-settled FLEX ETF Options would allow these same market participants to better manage the risk associated with the volatility of underlying equity positions given the enhanced liquidity that an exchange-traded product would bring.
                </P>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         As noted above, another options exchange recently received approval to list certain cash-settled FLEX ETF Options. 
                        <E T="03">See supra</E>
                         note 3.
                    </P>
                </FTNT>
                <P>
                    In the Exchange's view, cash-settled FLEX ETF Options traded on BOX would have three important advantages over the contracts that are traded in the OTC market. First, as a result of greater standardization of contract terms, exchange-traded contracts should develop more liquidity. Second, counter-party credit risk would be mitigated by the fact that the contracts are issued and guaranteed by OCC. Finally, the price discovery and dissemination provided by BOX and its Participants would lead to more transparent markets. The Exchange believes that its ability to offer cash-settled FLEX ETF Options would aid it in competing with the OTC market and at the same time expand the universe of products available to interested market participants. The Exchange believes that an exchange-traded alternative may provide a useful risk management and trading vehicle for market participants and their customers. Further, the Exchange believes listing cash-settled FLEX ETF Options would provide investors with competition on an exchange platform, as another exchange recently listed the same options.
                    <SU>17</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         
                        <E T="03">Id.</E>
                    </P>
                </FTNT>
                <P>
                    The Exchange notes that OCC has received approval from the Commission for rule changes that will accommodate the clearance and settlement of cash-settled ETF Options.
                    <SU>18</SU>
                    <FTREF/>
                     BOX has also analyzed its capacity and represents that it and The Options Price Reporting Authority (OPRA) have the necessary systems capacity to handle the additional traffic associated with the listing of cash-settled FLEX ETF Options. BOX believes any additional traffic that would be generated from the introduction of cash-settled FLEX ETF Options would be manageable. BOX expects that Participants will not have a capacity issue as a result of this proposed rule change. The Exchange also does not believe this proposed rule change will cause fragmentation of liquidity. The Exchange will monitor the trading volume associated with the additional options series listed as a result of this proposed rule change and the effect (if any) of these additional series on market fragmentation and on the capacity of the Exchange's automated systems.
                </P>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 94910 (May 13, 2022), 87 FR 30531 (May 19, 2022) (SR-OCC-2022-003).
                    </P>
                </FTNT>
                <P>The Exchange does not believe that allowing cash settlement as a contract term would render the marketplace for equity options more susceptible to manipulative practices. The Exchange believes that manipulating the settlement price of cash-settled FLEX ETF Options would be difficult based on the size of the market for the underlying ETFs that are the subject of this proposed rule change. The Exchange notes that each underlying ETF in the table above is sufficiently active to alleviate concerns about potential manipulative activity. Further, in the Exchange's view, the vast liquidity in the underlying ETFs that would currently be eligible to be traded as cash-settled FLEX options under the proposal ensures a multitude of market participants at any given time. Moreover, given the high level of participation among market participants that enter quotes and/or orders in physically settled options on these ETFs, the Exchange believes it would be very difficult for a single participant to alter the price of the underlying ETF or options overlying such ETF in any significant way without exposing the would-be manipulator to regulatory scrutiny. The Exchange further believes any attempt to manipulate the price of the underlying ETF or options overlying such ETF would also be cost prohibitive. As a result, the Exchange believes there is significant participation among market participants to prevent manipulation of cash-settled FLEX ETF Options.</P>
                <P>
                    Still, the Exchange believes it has an adequate surveillance program in place and intends to apply the same program procedures to cash-settled FLEX ETF Options that it applies to options currently trading BOX.
                    <SU>19</SU>
                    <FTREF/>
                     FLEX Equity Options, including FLEX ETF Options, and their respective symbols are integrated into the Exchange's existing surveillance system architecture and are thus subject to the relevant surveillance processes. The Exchange believes that the existing surveillance procedures at the Exchange are capable of properly identifying unusual and/or illegal trading activity, which procedures the Exchange would utilize to surveil for aberrant trading in cash-settled FLEX ETF Options.
                </P>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         For example, the regulatory program for the Exchange includes surveillance designed to identify manipulative and other improper options trading, including, spoofing, marking the close, front running, wash sales, etc.
                    </P>
                </FTNT>
                <P>
                    With respect to regulatory scrutiny, the Exchange believes its existing surveillance technologies and procedures adequately address potential concerns regarding possible 
                    <PRTPAGE P="16415"/>
                    manipulation of the settlement value at or near the close of the market. The Exchange notes that the regulatory program operated by and overseen by the Exchange 
                    <SU>20</SU>
                    <FTREF/>
                     includes cross-market surveillance designed to identify manipulative and other improper trading, including spoofing, algorithm gaming, marking the close and open, as well as more general, abusive behavior related to front running, wash sales, quoting/routing, and Reg SHO violations, that may occur on the Exchange or other markets. These cross-market patterns incorporate relevant data from various markets beyond the Exchange. The Exchange represents that its existing trading surveillances are adequate to monitor trading in the underlying ETFs and subsequent trading of options on those securities on BOX, including cash-settled FLEX ETF Options.
                    <SU>21</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         The Exchange maintains regulatory services agreements with Financial Industry Regulatory Authority, Inc. (“FINRA”) whereby FINRA provides certain regulatory services to the exchanges, including cross-market surveillance, investigation, and enforcement services.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         Such surveillance procedures generally focus on detecting securities trading subject to opening price manipulation, closing price manipulation, layering, spoofing or other unlawful activity impacting an underlying security, the option, or both. The Exchange has price movement alerts, unusual market activity and order book alerts active for all trading symbols.
                    </P>
                </FTNT>
                <P>
                    Additionally, for options, the Exchange utilizes an array of patterns that monitor manipulation of options, or manipulation of equity securities (regardless of venue) for the purpose of impacting options prices on the Exchange (
                    <E T="03">i.e.,</E>
                     mini-manipulation strategies). That surveillance coverage is initiated once options begin trading on BOX. Accordingly, the Exchange believes that the cross-market surveillance performed by the Exchange or FINRA, on behalf of the Exchange, coupled with the Exchange's own monitoring for violative activity on BOX comprise a comprehensive surveillance program that is adequate to monitor for manipulation of the underlying ETF and overlying option. Furthermore, the Exchange believes that the existing surveillance procedures at the Exchange are capable of properly identifying unusual and/or illegal trading activity, which the Exchange would utilize to surveil for aberrant trading in cash-settled FLEX ETF Options.
                </P>
                <P>
                    In addition to the surveillance procedures and processes described above, improvements in audit trails (
                    <E T="03">i.e.,</E>
                     the Consolidated Audit Trail), recordkeeping practices, and inter-exchange cooperation over the last two decades have greatly increased the Exchange's ability to detect and punish attempted manipulative activities. In addition, the Exchange is a member of the Intermarket Surveillance Group (“ISG”).
                    <SU>22</SU>
                    <FTREF/>
                     The ISG members work together to coordinate surveillance and investigative information sharing in the stock and options markets. For surveillance purposes, the Exchange would therefore have access to information regarding trading activity in the pertinent underlying securities. The Exchange will monitor and adjust its surveillance procedures as needed for the cash settlement of FLEX ETF Options.
                </P>
                <FTNT>
                    <P>
                        <SU>22</SU>
                         ISG is an industry organization formed in 1983 to coordinate intermarket surveillance among the SROs by cooperatively sharing regulatory information pursuant to a written agreement between the parties. The goal of the ISG's information sharing is to coordinate regulatory efforts to address potential intermarket trading abuses and manipulations.
                    </P>
                </FTNT>
                <P>
                    The proposed rule change is designed to allow investors seeking to effect cash-settled FLEX ETF Options with the opportunity for a different method of settling option contracts at expiration if they choose to do so. As noted above, market participants may choose cash settlement because physical settlement possesses certain risks with respect to volatility and movement of the underlying security at expiration that market participants may need to hedge against. The Exchange believes that offering innovative products flows to the benefit of the investing public. A robust and competitive market requires that exchanges respond to Participants' evolving needs by constantly improving their offerings. Such efforts would be stymied if exchanges were prohibited from offering innovative products for reasons that are generally debated in academic literature. The Exchange believes that introducing cash-settled FLEX ETF Options would further broaden the base of investors that use FLEX Equity Options to manage their trading and investment risk, including investors that currently trade in the OTC market for customized options, where settlement restrictions do not apply. The proposed rule change is also designed to encourage market makers to shift liquidity from the OTC market onto BOX, which, it believes, would enhance the process of price discovery conducted on BOX through increased order flow. The Exchange also believes that this may open up cash-settled FLEX ETF Options to more retail investors. The Exchange does not believe that this proposed rule change raises any unique regulatory concerns because existing safeguards—such as position limits (and the aggregation of cash-settled positions with physically-settled positions), exercise limits (and the aggregation of cash-settled positions with physically-settled positions), and reporting requirements—would continue to apply. The Exchange believes the proposed position and exercise limits may further help mitigate the concerns that the limits are designed to address about the potential for manipulation and market disruption in the options and the underlying securities.
                    <SU>23</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>23</SU>
                         
                        <E T="03">See supra</E>
                         note 13.
                    </P>
                </FTNT>
                <P>Given the novel characteristics of cash-settled FLEX ETF Options, the Exchange will conduct a review of the trading in cash-settled FLEX ETF Options over an initial five-year period. The Exchange will furnish five reports to the Commission based on this review, the first of which would be provided within 60 days after the first anniversary of the initial listing date of the first cash-settled FLEX ETF Option under the proposed rule and each subsequent annual report to be provided within 60 days after the second, third, fourth and fifth anniversary of such initial listing. At a minimum, each report will provide a comparison between the trading volume of all cash-settled FLEX ETF Options listed under the proposed rule and physically settled options on the same underlying security, the liquidity of the market for such options products and the underlying ETF, and any manipulation concerns arising in connection with the trading of cash-settled FLEX ETF Options under the proposed rule. The Exchange will also provide additional data as requested by the Commission during this five-year period. The reports will also discuss any recommendations the Exchange may have for enhancements to the listing standards based on its review. The Exchange believes these reports will allow the Commission and the Exchange to evaluate, among other things, the impact such options have, and any potential adverse effects, on price volatility and the market for the underlying ETFs, the component securities underlying the ETFs, and the options on the same underlying ETFs and make appropriate recommendations, if any, in response to the reports.</P>
                <P>The Exchange notes that it will issue a notice to Participants via Notice announcing the implementation date of the proposal.</P>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that the proposal is consistent with the requirements of Section 6(b) of the Securities Exchange Act of 1934 (the 
                    <PRTPAGE P="16416"/>
                    “Act”),
                    <SU>24</SU>
                    <FTREF/>
                     in general, and Section 6(b)(5) of the Act,
                    <SU>25</SU>
                    <FTREF/>
                     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. In particular, the Exchange believes that introducing cash-settled FLEX ETF Options will increase order flow to BOX, increase the variety of options products available for trading, and provide a valuable tool for investors to manage risk.
                </P>
                <FTNT>
                    <P>
                        <SU>24</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>25</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <P>
                    The Exchange believes that the proposal to permit cash settlement as a contract term for options on the specified group of equity securities would remove impediments to and perfect the mechanism of a free and open market as cash-settled FLEX ETF Options would enable market participants to receive cash in lieu of shares of the underlying security, which would, in turn, provide greater opportunities for market participants to manage risk through the use of a cash-settled product to the benefit of investors and the public interest. The Exchange does not believe that allowing cash settlement as a contract term for options on the specified group of equity securities would render the marketplace for equity options more susceptible to manipulative practices. As illustrated in the table above, each of the qualifying underlying securities is actively traded and highly liquid and thus would not be susceptible to manipulation because, over a six-month period, each security had an average daily notional value of at least $500 million and an ADV of at least 4,680,000 shares, which indicates that there is substantial liquidity present in the trading of these securities, and that there is significant depth and breadth of market participants providing liquidity and of investor interest. The Exchange believes the proposed bi-annual review to determine eligibility for an underlying ETF to have cash settlement as a contract term would remove impediments to and perfect the mechanism of a free and open market as it would permit the Exchange to select only those underlying ETFs that are actively traded and have robust liquidity as each qualifying ETF would be required to meet the average daily notional value and average daily volume requirements, as well as to select the same underlying ETFs on which other exchanges may list cash-settled FLEX ETF Options.
                    <SU>26</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>26</SU>
                         
                        <E T="03">See supra</E>
                         note 12.
                    </P>
                </FTNT>
                <P>The Exchange believes that the data provided by the Exchange supports the supposition that permitting cash settlement as a FLEX term for the 43 underlying ETFs that would currently qualify to have cash settlement as a contract term would broaden the base of investors that use FLEX Equity Options to manage their trading and investment risk, including investors that currently trade in the OTC market for customized options, where settlement restrictions do not apply.</P>
                <P>
                    The Exchange believes that the proposal to permit cash settlement for certain FLEX ETF options would remove impediments to and perfect the mechanism of a free and open market because the proposed rule change would provide Participants with enhanced methods to manage risk by receiving cash if they choose to do so instead of the underlying security. In addition, this proposal would promote just and equitable principles of trade and protect investors and the general public because cash settlement would provide investors with an additional tool to manage their risk. Further, the Exchange notes that other exchanges have previously received approval that allow for the trading of cash-settled options 
                    <SU>27</SU>
                    <FTREF/>
                     and, specifically, cash-settled FLEX ETF Options in an identical manner as the Exchange proposes to list them pursuant to this rule filing.
                    <SU>28</SU>
                    <FTREF/>
                     The proposed rule change therefore should not raise issues for the Commission that it has not previously addressed.
                </P>
                <FTNT>
                    <P>
                        <SU>27</SU>
                         
                        <E T="03">See supra</E>
                         note 11.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>28</SU>
                         
                        <E T="03">See supra</E>
                         note 3.
                    </P>
                </FTNT>
                <P>The proposed rule change to permit cash settlement as a contract term for options on up to 50 ETFs is designed to promote just and equitable principles of trade in that the availability of cash settlement as a contract term would give market participants an alternative to trading similar products in the OTC market. By trading a product in an exchange-traded environment (that is currently traded in the OTC market), BOX would be able to compete more effectively with the OTC market. The Exchange believes the proposed rule change is designed to prevent fraudulent and manipulative acts and practices in that it would lead to the migration of options currently trading in the OTC market to trading on the Exchange. Also, any migration to BOX from the OTC market would result in increased market transparency. Additionally, the Exchange believes the proposed rule change is designed to remove impediments to and to perfect the mechanism for a free and open market and a national market system, and, in general, to protect investors and the public interest in that it should create greater trading and hedging opportunities and flexibility. The proposed rule change should also result in enhanced efficiency in initiating and closing out positions and heightened contra-party creditworthiness due to the role of OCC as issuer and guarantor of the proposed cash-settled options. Further, the proposed rule change would result in increased competition by permitting the Exchange to offer products that are currently available for trading only in the OTC market and are approved to trade on other options exchanges.</P>
                <P>The Exchange believes that establishing position limits for cash-settled FLEX ETF Options to be the same as physically settled options on the same underlying security, and aggregating positions in cash-settled FLEX ETF Options with physically settled options on the same underlying security for purposes of calculating position limits is reasonable and consistent with the Act. By establishing the same position limits for cash-settled FLEX ETF Options as for physically settled options on the same underlying security and, importantly, aggregating such positions, the Exchange believes that the position limit requirements for cash-settled FLEX ETF Options should help to ensure that the trading of cash-settled FLEX ETF Options would not increase the potential for manipulation or market disruption and could help to minimize such incentives. For the same reasons, the Exchange believes the proposed exercise limits are reasonable and consistent with the Act.</P>
                <P>
                    Finally, the Exchange represents that it has an adequate surveillance program in place to detect manipulative trading in cash-settled FLEX ETF Options and the underlying ETFs. Regarding the proposed cash settlement, the Exchange would use the same surveillance procedures currently utilized for the Exchange's other FLEX Equity Options. For surveillance purposes, the Exchange would have access to information regarding trading activity in the pertinent underlying ETFs. The Exchange believes that limiting cash settlement to no more than 50 underlying ETFs (currently, 43 ETFs would be eligible to have cash-settlement as a contract term) would minimize the possibility of manipulation due to the robust liquidity in both the equities and options markets.
                    <PRTPAGE P="16417"/>
                </P>
                <P>
                    As a self-regulatory organization, the Exchange recognizes the importance of surveillance, among other things, to detect and deter fraudulent and manipulative trading activity as well as other violations of Exchange rules and the federal securities laws. As discussed above, the Exchange has adequate surveillance procedures in place to monitor trading in cash-settled FLEX ETF Options and the underlying securities, including to detect manipulative trading activity in both the options and the underlying ETF.
                    <SU>29</SU>
                    <FTREF/>
                     The Exchange further notes the liquidity and active markets in the underlying ETFs, and the high number of market participants in both the underlying ETFs and existing options on the ETFs, helps to minimize the possibility of manipulation. The Exchange further notes that under Section 19(g) of the Act, the Exchange, as a self-regulatory organization, is required to enforce compliance by its members and persons associated with its members with the Act, the rules and regulations thereunder, and the rules of the Exchange.
                    <SU>30</SU>
                    <FTREF/>
                     The Exchange believes its surveillance, along with the liquidity criteria and position and exercise limits requirements, are reasonably designed to mitigate manipulation and market disruption concerns and will permit it to enforce compliance with the proposed rules and other Exchange rules in accordance with Section 19(g) of the Act. The Exchange performs ongoing evaluations of its surveillance program to ensure its continued effectiveness and will continue to review its surveillance procedures on an ongoing basis and make any necessary enhancements and/or modifications that may be needed for the cash settlement of FLEX ETF Options.
                </P>
                <FTNT>
                    <P>
                        <SU>29</SU>
                         Among other things, the Exchange's regulatory program includes cross-market surveillance designed to identify manipulative and other improper trading, including spoofing, algorithm gaming, marking the close and open, as well as more general abusive behavior related to front running, wash sales, quoting/routing, and Reg SHO violations, that may occur on the Exchange and other markets. Furthermore, the Exchange stated that it has access to information regarding trading activity in the pertinent underlying securities as a member of ISG.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>30</SU>
                         15 U.S.C. 78s(g).
                    </P>
                </FTNT>
                <P>Additionally, the Exchange will monitor any effect additional options series listed under the proposed rule change will have on market fragmentation and the capacity of BOX's automated systems. The Exchange will take prompt action, including timely communication with the Commission and with other self-regulatory organizations responsible for oversight of trading in options, the underlying ETFs, and the ETFs' component securities, should any unanticipated adverse market effects develop.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>The Exchange does not believe that the proposed rule change will impose any burden on competition not necessary or appropriate in furtherance of the purposes of the Act. The Exchange does not believe 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 all Floor Brokers and FLEX Market Makers that are authorized to trade FLEX Equity Options in accordance with the Exchange's Rules will be able to trade cash-settled FLEX ETF Options in the same manner. This includes that, for all FLEX Equity Options, including FLEX ETF Options, at least one of exercise style, expiration date, and exercise price must differ from options in the non-FLEX market. Additionally, positions in cash-settled FLEX ETF Options of all Participants will be subject to the same position limits, and such positions will be aggregated with positions in physically settled options on the same underlying in the same manner.</P>
                <P>The Exchange does not believe that the proposed rule change will impose any burden on intermarket competition that is not necessary or appropriate in furtherance of the purposes of the Act, as the proposal is designed to increase competition for order flow on BOX in a manner that is beneficial to investors because it is designed to provide investors seeking to transact in FLEX ETF Options with the opportunity for an alternative method of settling their option contracts at expiration. The Exchange believes the proposed rule change will encourage competition, as it may broaden the base of investors that use FLEX Equity Options to manage their trading and investment risk, including investors that currently trade in the OTC market for customized options, where settlement restrictions do not apply. The proposed rule change would give market participants an alternative to trading similar products in the OTC market. By trading a product in an exchange-traded environment (that is currently traded in the OTC market), BOX would be able to compete more effectively with the OTC market. The Exchange believes the proposed rule change may increase competition as it may lead to the migration of options currently trading in the OTC market to trading on BOX. Also, any migration to BOX from the OTC market would result in increased market transparency and thus increased price competition.</P>
                <P>
                    The Exchange further notes that it operates in a highly competitive market in which market participants can readily direct order flow to competing venues who offer similar functionality. The Exchange believes the proposed rule change encourages competition amongst market participants to provide tailored cash-settled FLEX ETF Option contracts, as other exchanges have received approval to list these contracts (subject to the same position and exercise limits as proposed).
                    <SU>31</SU>
                    <FTREF/>
                     Therefore, the Exchange believes the proposed rule change will enhance intermarket competition by providing investors with a choice of exchange venues on which to trade cash-settled FLEX ETF Options.
                </P>
                <FTNT>
                    <P>
                        <SU>31</SU>
                         
                        <E T="03">See supra</E>
                         note 3.
                    </P>
                </FTNT>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>The Exchange has neither solicited nor received comments on the proposed rule change.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>Because the foregoing proposed rule change does not:</P>
                <P>(i) significantly affect the protection of investors or the public interest;</P>
                <P>(ii) impose any significant burden on competition; and</P>
                <P>
                    (iii) become operative for 30 days from the date on which it was filed, or such shorter time as the Commission may designate, it has become effective pursuant to Section 19(b)(3)(A) of the Act 
                    <SU>32</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) 
                    <SU>33</SU>
                    <FTREF/>
                     thereunder.
                </P>
                <FTNT>
                    <P>
                        <SU>32</SU>
                         15 U.S.C. 78s(b)(3)(A).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>33</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>34</SU>
                    <FTREF/>
                     normally does not become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>35</SU>
                    <FTREF/>
                     the Commission may 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 proposal may become operative immediately upon 
                    <PRTPAGE P="16418"/>
                    filing. The Commission believes that waiver of the 30-day operative delay would allow the Exchange to offer the cash-settled FLEX ETF Options that are the subject of this proposal following the issuance of a notice to participants announcing the implementation date of the proposal. The Commission further notes that other exchanges have already received approval to offer cash-settled FLEX ETF Options subject to the same parameters and limitations as set forth in this proposal. The Commission therefore believes that the proposed rule change presents no novel issues and waiver of the 30-day operative delay is consistent with the protection of investors and the public interest. Accordingly, the Commission hereby waives the 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>36</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>34</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>35</SU>
                         17 CFR 240.19b-4(f)(6)(iii). In addition, Rule 19b-4(f)(6) requires a self-regulatory organization to give the Commission written notice of its intent to file 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.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>36</SU>
                         For purposes only of waiving the 30-day operative delay, the Commission also has considered the proposed rule's impact on efficiency, competition, and capital formation. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-BOX-2025-07 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-BOX-2025-07. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-2025-07 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>37</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>37</SU>
                             17 CFR 200.30-3(a)(12), (59).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06524 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SECURITIES AND EXCHANGE COMMISSION</AGENCY>
                <DEPDOC>[Release No. 34-102825; File No. SR-Phlx-2025-18]</DEPDOC>
                <SUBJECT>Self-Regulatory Organizations; Nasdaq PHLX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Its Rules To Allow the Exchange To List Options on the iShares Ethereum Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust</SUBJECT>
                <DATE>April 11, 2025.</DATE>
                <P>
                    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 (“Act”),
                    <SU>1</SU>
                    <FTREF/>
                     and Rule 19b-4 thereunder,
                    <SU>2</SU>
                    <FTREF/>
                     notice is hereby given that April 10, 2025, Nasdaq PHLX LLC (“Phlx” or “Exchange”) filed with the Securities and Exchange Commission (“Commission”) the proposed rule change as described in Items I and II below, which Items have been prepared by the Exchange. The Exchange filed the proposal as a “non-controversial” proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act 
                    <SU>3</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>4</SU>
                    <FTREF/>
                     The Commission is publishing this notice to solicit comments on the proposed rule change from interested persons.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         15 U.S.C. 78s(b)(1).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         17 CFR 240.19b-4.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>4</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <HD SOURCE="HD1">I. Self-Regulatory Organization's Statement of the Terms of Substance of the Proposed Rule Change</HD>
                <P>The Exchange proposes to amend Options 9, Section 13, Position Limits, for options on the iShares Ethereum Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust, (collectively “Ether Trusts”). Additionally, the Exchange proposes to amend Options 8, Section 34, FLEX Trading, to except FLEX Options on these ether trusts from trading as a FLEX option contract.</P>
                <P>
                    The text of the proposed rule change is available on the Exchange's website at 
                    <E T="03">https://listingcenter.nasdaq.com/rulebook/phlx/rulefilings,</E>
                     at the principal office of the Exchange, and at the Commission's Public Reference Room.
                </P>
                <HD SOURCE="HD1">II. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <P>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.</P>
                <HD SOURCE="HD2">A. Self-Regulatory Organization's Statement of the Purpose of, and Statutory Basis for, the Proposed Rule Change</HD>
                <HD SOURCE="HD3">1. Purpose</HD>
                <P>
                    The Exchange proposes to amend Options 9, Section 13, Position Limits, for options on the iShares Ethereum Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust, (collectively 
                    <PRTPAGE P="16419"/>
                    “Ether Trusts”). Additionally, the Exchange proposes to amend Options 8, Section 34, FLEX Trading, to except FLEX Options on these Ether Trusts from trading as a FLEX option contract.
                </P>
                <HD SOURCE="HD3">Options 9, Section 13</HD>
                <P>
                    Recently, Nasdaq ISE, LLC (“ISE”) received approval to list options on iShares Ethereum Trust, Cboe Exchange, Inc. (“Cboe”) received approval to list options on the Fidelity Ethereum Fund, and NYSE American LLC (“NYSE American”) received approval to list options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust (collectively, “Ether Trusts”).
                    <SU>5</SU>
                    <FTREF/>
                     ISE filed a rule change to list and trade options on the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.
                    <SU>6</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>5</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 102798 (April 9, 2025) (SR-ISE-2024-35) (not yet noticed); 102797 (April 9, 2025) (SR-Cboe 2024-036) (not yet published); 102799 (April 9, 2025), (not yet published) (SR-NYSEAMER-2024-45).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>6</SU>
                         
                        <E T="03">See</E>
                         SR-ISE-2024-11[sic] (not yet noticed).
                    </P>
                </FTNT>
                <P>
                    Phlx's Options 4 Rules were amended by the ISE rule changes to list options on the Ether Trusts, as those Rules are incorporated by reference to Phlx's Options 4 Rules, so ISE has the ability to list the options on the Ether Trusts. The Ether Approval Orders stated that the position and exercise limits for each of the Ether Trusts shall be 25,000 contracts. At this time, the Exchange proposes to amend Phlx Option 9, Section 13 to note that options on each Ether Trust shall have position and exercise limits of 25,000 contracts to mirror the Ether Approval Orders.
                    <SU>7</SU>
                    <FTREF/>
                     Phlx Options 9, Section 15(a) provides that the exercise limits shall be determined in the manner described in Options 9, Section 13, therefore the exercise limits would also be 25,000 contracts for each of the Ether Trusts.
                </P>
                <FTNT>
                    <P>
                        <SU>7</SU>
                         The Exchange notes that the exercise limit for an equity option is the same as the position limit established in Options 9, Section 13 for that equity options. 
                        <E T="03">See</E>
                         Options 9, Section 15.
                    </P>
                </FTNT>
                <HD SOURCE="HD3">Options 8, Section 34</HD>
                <P>
                    Today, all options series listed on Phlx may trade as a FLEX Order on Phlx's trading floor.
                    <SU>8</SU>
                    <FTREF/>
                     At this time, the Exchange proposes to note within Options 8, Section 34(a) that it will not authorize for trading a FLEX Option on each of the Ether Trusts. The Exchange proposes this amendment in light of the position and exercise limits of 25,000 contracts that were set for each Ether Trust in the Ether Approval Orders. The Exchange proposes this amendment in light of the position and exercise limits of 25,000 contracts that were set for each Ether Trust in the Ether Approval Order. Permitting trading a FLEX Option on each Ether Trust would otherwise establish different position and exercise limits than those set by the Ether Approval Order.
                </P>
                <FTNT>
                    <P>
                        <SU>8</SU>
                         Phlx Options 8, Section 34 rule text was previously amended by two rule changes which are effective, but not yet operative. 
                        <E T="03">See</E>
                         Securities Exchange Act Release Nos. 97658 (June 7, 2023), 88 FR 38562 (June 13, 2023) (SR-Phlx-2023-22); and 100321 (June 12, 2024), 89 FR 51580 (June 18, 2024) (SR-Phlx-2024-24).
                    </P>
                </FTNT>
                <HD SOURCE="HD3">2. Statutory Basis</HD>
                <P>
                    The Exchange believes that its proposal is consistent with Section 6(b) of the Act,
                    <SU>9</SU>
                    <FTREF/>
                     in general, and furthers the objectives of Section 6(b)(5) of the Act,
                    <SU>10</SU>
                    <FTREF/>
                     in particular, in that it is designed to promote just and equitable principles of trade, 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.
                </P>
                <FTNT>
                    <P>
                        <SU>9</SU>
                         15 U.S.C. 78f(b).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>10</SU>
                         15 U.S.C. 78f(b)(5).
                    </P>
                </FTNT>
                <P>
                    The Exchange's proposal to amend Options 9, Section 13, Position Limits, to provide that the position limits (and exercise limits) for each of the Ether Trusts shall be 25,000 contracts is consistent with the Act as it will conform Phlx's options position limits (and exercise limits) with ISE's options position and exercise limits for the Ether Trusts in order that there would be the same position and exercise limits on Phlx and ISE.
                    <SU>11</SU>
                    <FTREF/>
                     Phlx Options 9, Section 15(a) provides that the exercise limits shall be determined in the manner described in Options 9, Section 13, therefore the exercise limits would also be 25,000 contracts and also consistent with ISE's options position and exercise limits for the Ether Trusts.
                </P>
                <FTNT>
                    <P>
                        <SU>11</SU>
                         The Exchange believes that other exchanges will adopt position and exercise limits of 25,000 contracts for each of the Ether Trusts. All Nasdaq affiliated markets are filing to adopt a 25,000 contract position and exercise limit for options on the Ether Trusts.
                    </P>
                </FTNT>
                <P>The Exchange's proposal to amend Options 8, Section 34 to note that it will not authorize for trading a FLEX Option on each of the Ether Trusts is consistent with the spirit of the Ether Approval Orders that limited the position and exercise limits for the Ether Trusts to 25,000 contracts. The proposal will protect investors and the general public because without this prohibition, trading a FLEX Option on the Ether Trusts, would otherwise establish different position and exercise limits than those set by the Ether Approval Orders.</P>
                <HD SOURCE="HD2">B. Self-Regulatory Organization's Statement on Burden on Competition</HD>
                <P>The proposed rule change does not impose any burden on competition that is not necessary or appropriate in furtherance of the purposes of the Act.</P>
                <P>
                    Amending Options 9, Section 13 to provide that the position and exercise limits for options on each of the Ether Trusts shall be 25,000 contracts does not impose an undue burden on competition as the position and exercise limits will apply to all trading for options on the Ether Trusts trading on the Exchange as well as those trading on other exchanges that file a similar proposal.
                    <SU>12</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>12</SU>
                         All Nasdaq affiliated markets are filing to adopt a 25,000 contract position and exercise limit for options on the Ether Trusts.
                    </P>
                </FTNT>
                <P>The Exchange's proposal to note that it will not authorize for trading a FLEX Option on any of the Ether Trusts does not impose an undue burden on competition as no Phlx member will be able to transact a FLEX Option on any of Ether Trusts.</P>
                <HD SOURCE="HD2">C. Self-Regulatory Organization's Statement on Comments on the Proposed Rule Change Received From Members, Participants, or Others</HD>
                <P>No written comments were either solicited or received.</P>
                <HD SOURCE="HD1">III. Date of Effectiveness of the Proposed Rule Change and Timing for Commission Action</HD>
                <P>
                    The Exchange has filed the proposed rule change pursuant to Section 19(b)(3)(A) of the Act 
                    <SU>13</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) thereunder.
                    <SU>14</SU>
                    <FTREF/>
                     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 
                    <SU>15</SU>
                    <FTREF/>
                     and Rule 19b-4(f)(6) 
                    <SU>16</SU>
                    <FTREF/>
                     thereunder.
                </P>
                <FTNT>
                    <P>
                        <SU>13</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>14</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>15</SU>
                         15 U.S.C. 78s(b)(3)(A)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>16</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <P>
                    A proposed rule change filed under Rule 19b-4(f)(6) 
                    <SU>17</SU>
                    <FTREF/>
                     under the Act does not normally become operative prior to 30 days after the date of the filing. However, pursuant to Rule 19b-4(f)(6)(iii),
                    <SU>18</SU>
                    <FTREF/>
                     the Commission may designate a shorter time if such action is consistent with the protection of investors and the public interest. The Exchange has requested that the 
                    <PRTPAGE P="16420"/>
                    Commission waive the 30-day operative delay so that the proposal may become operative immediately upon filing. The Commission previously approved the listing of options on iShares Ethereum Trust, the Fidelity Ethereum Fund, the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust.
                    <SU>19</SU>
                    <FTREF/>
                     As noted above, Phlx's Options 4 Rules were amended by an ISE rule change 
                    <SU>20</SU>
                    <FTREF/>
                     as those Rules are incorporated by reference to ISE's Options 4 Rules, so Phlx has the ability to list the options on the Ether Trusts. This proposal establishes position and exercise limits for options on the Ether Trusts. The Commission believes that waiver of the operative delay could benefit investors by assuring that trading in Ether Trust options are subject to the same position and exercise limits in place on other exchanges. Therefore, the Commission believes 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 30-day operative delay and designates the proposed rule change as operative upon filing.
                    <SU>21</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>17</SU>
                         17 CFR 240.19b-4(f)(6).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>18</SU>
                         17 CFR 240.19b-4(f)(6)(iii).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>19</SU>
                         
                        <E T="03">See</E>
                         Securities Exchange Act Release No. 102797 (April 9, 2025), (SR-Cboe-2024-036) (Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on Shares of the Fidelity Ethereum Fund) 
                        <E T="03">See also</E>
                         Securities Exchange Act Release No. 102798 (April 9, 2025), (SR-ISE-2024-35) (Notice of Filing of Amendment No. 1 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 1, to Permit the Listing and Trading of Options on the iShares Ethereum Trust). 
                        <E T="03">See also</E>
                         Securities Exchange Act Release No. 102799 (April 9, 2025), (SR-NYSEAMER-2024-45) (Notice of Filing of Amendment No. 2 and Order Granting Accelerated Approval of a Proposed Rule Change, as Modified by Amendment No. 2, to Amend Exchange Rule 915 To Permit the Listing and Trading of Options on the Bitwise Ethereum ETF, the Grayscale Ethereum Trust, and the Grayscale Ethereum Mini Trust).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>20</SU>
                         
                        <E T="03">See</E>
                         SR-ISE-2025-11.
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>21</SU>
                         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. 
                        <E T="03">See</E>
                         15 U.S.C. 78c(f).
                    </P>
                </FTNT>
                <P>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 will institute proceedings to determine whether the proposed rule change should be approved or disapproved.</P>
                <HD SOURCE="HD1">IV. Solicitation of Comments</HD>
                <P>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:</P>
                <HD SOURCE="HD2">Electronic Comments</HD>
                <P>
                    • Use the Commission's internet comment form (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ); or
                </P>
                <P>
                    • Send an email to 
                    <E T="03">rule-comments@sec.gov.</E>
                     Please include file number SR-Phlx-2025-18 on the subject line.
                </P>
                <HD SOURCE="HD2">Paper Comments</HD>
                <P>• Send paper comments in triplicate to Secretary, Securities and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.</P>
                <FP>
                    All submissions should refer to file number SR-Phlx-2025-18. 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 (
                    <E T="03">https://www.sec.gov/rules/sro.shtml</E>
                    ). 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-Phlx-2025-18 and should be submitted on or before May 8, 2025.
                </FP>
                <SIG>
                    <P>
                        For the Commission, by the Division of Trading and Markets, pursuant to delegated authority.
                        <SU>22</SU>
                        <FTREF/>
                    </P>
                    <FTNT>
                        <P>
                            <SU>22</SU>
                             17 CFR 200.30-3(a)(12).
                        </P>
                    </FTNT>
                    <NAME>Sherry R. Haywood,</NAME>
                    <TITLE>Assistant Secretary.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06503 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8011-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF STATE</AGENCY>
                <DEPDOC>[Public Notice: 12697]</DEPDOC>
                <SUBJECT>60-Day Notice of Proposed Information Collection: Medical Examination for Visa or Immigration Benefit</SUBJECT>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of request for public comment.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of State is seeking Office of Management and Budget (OMB) approval for the information collection described below. In accordance with the Paperwork Reduction Act of 1995, we are requesting comments on this collection from all interested individuals and organizations. The purpose of this notice is to allow 60 days for public comment preceding submission of the collection to OMB.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>The Department will accept comments from the public up to June 16, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments by any of the following methods:</P>
                    <P>
                        <E T="03">Web:</E>
                         Persons with access to the internet may comment on this notice by going to 
                        <E T="03">www.Regulations.gov.</E>
                         You can search for the document by entering “Docket Number: DOS-2025-0002” in the Search field. Then click the “Comment Now” button and complete the comment form.
                    </P>
                    <P>
                        • 
                        <E T="03">Email: PRA_BurdenComments@state.gov</E>
                        .
                    </P>
                    <P>
                        • 
                        <E T="03">Regular Mail:</E>
                         Send written comments to: Senior Regulatory Coordinator, Visa Services, Department of State, 600 19th St. NW, Washington, DC 20006.
                    </P>
                    <P>• You must include the DS form number (if applicable), information collection title, and the OMB control number in any correspondence.</P>
                </ADD>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    • 
                    <E T="03">Title of Information Collection:</E>
                     Medical Examination for Visa or Immigration Benefit.
                </P>
                <P>
                    • 
                    <E T="03">OMB Control Number:</E>
                     1405-0113.
                </P>
                <P>
                    • 
                    <E T="03">Type of Request:</E>
                     Extension without change.
                </P>
                <P>
                    • 
                    <E T="03">Originating Office:</E>
                     Bureau of Consular Affairs, Visa Office.
                </P>
                <P>
                    • 
                    <E T="03">Form Number(s):</E>
                     DS-2054, DS-3025, DS-3026, and DS-3030.
                    <PRTPAGE P="16421"/>
                </P>
                <P>
                    • 
                    <E T="03">Respondents:</E>
                     Panel Physicians on behalf of Visa Applicants; Follow-to-Join Refugee/Asylum Applicants; Parole Applicants with Boarding Foils.
                </P>
                <P>
                    • 
                    <E T="03">Estimated Number of Respondents:</E>
                     800.
                </P>
                <P>
                    • 
                    <E T="03">Estimated Number of Responses:</E>
                     146,000.
                </P>
                <P>
                    • 
                    <E T="03">Average Time per Response:</E>
                     1 hour.
                </P>
                <P>
                    • 
                    <E T="03">Total Estimated Burden Time:</E>
                     146,000 hours.
                </P>
                <P>
                    • 
                    <E T="03">Frequency:</E>
                     Once for each medical examination performed for a U.S. visa or immigration benefit.
                </P>
                <P>
                    • 
                    <E T="03">Obligation to Respond:</E>
                     Mandatory.
                </P>
                <P>We are soliciting public comments to permit the Department to:</P>
                <P>• Evaluate whether the proposed information collection is necessary for the proper functions of the Department.</P>
                <P>• Evaluate the accuracy of our estimate of the time and cost burden for this proposed collection, including the validity of the methodology and assumptions used.</P>
                <P>• Enhance the quality, utility, and clarity of the information to be collected.</P>
                <P>• Minimize the reporting burden on those who are to respond, including the use of automated collection techniques or other forms of information technology.</P>
                <P>Please note that comments submitted in response to this Notice are public record. Before including any detailed personal information, you should be aware that your comments as submitted, including your personal information, will be available for public review.</P>
                <HD SOURCE="HD1">Abstract of Proposed Collection</HD>
                <P>Forms for this collection are completed by panel physicians on behalf of aliens seeking a visa; refugees; follow-to-join refugees and asylees; and certain parolees. The forms record the medical information necessary to determine whether an alien has a medical or other condition affecting their eligibility for a visa or immigration benefit. The information requested includes the result of any diagnostic tests required for the diagnosis of diseases identified as communicable diseases of public health significance, as well as other evaluations identified as necessary to confirm a medical ineligibility under INA sec. 212(a)(1), 8 U.S.C. 1182(a)(1) or to comply with other requirements. Collecting this information is essential to protecting public health in the United States.</P>
                <HD SOURCE="HD1">Methodology</HD>
                <P>A panel physician designated by the consular post performs a medical examination of the applicant and completes the forms according to instructions issued by the Centers for Disease Control (CDC). Respondents submit the forms to the appropriate embassy or consulate, either by providing the completed forms to the applicant in a sealed envelope or by sending them directly via courier. The information collected is retained by the Bureau of Consular Affairs. It is also provided to the CDC, and to the Department of Homeland Security upon arrival at the port of entry.</P>
                <SIG>
                    <NAME>Stuart R. Wilson,</NAME>
                    <TITLE>Deputy Assistant Secretary, Bureau of Consular Affairs, Department of State.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06628 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4710-06-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">SURFACE TRANSPORTATION BOARD</AGENCY>
                <DEPDOC>[Docket No. AB 55 (Sub-No. 820X)]</DEPDOC>
                <SUBJECT>CSX Transportation, Inc.—Discontinuance of Service Exemption—in Bergen County, N.J., and Rockland County, N.Y.</SUBJECT>
                <P>
                    CSX Transportation, Inc. (CSXT) has filed a verified notice of exemption under 49 CFR part 1152, subpart F—
                    <E T="03">Exempt Abandonments and Discontinuances of Service</E>
                     to discontinue service over an approximately 7.51-mile rail line on its Albany Division, River Subdivision, Northern Running Track, from milepost QRN 15.09 in Bergen County, N.J., to milepost QRN 22.6 in Rockland County, N.Y. (the Line). The Line traverses U.S. Postal Service Zip Codes 07670, 07626, 07627, 07624, 07648, 07647, and 10983.
                </P>
                <P>CSXT has certified that: (1) no local traffic has moved over the Line for at least two years; (2) any overhead traffic can be and has been rerouted over other lines; (3) no formal complaint filed by a user of rail service on the Line (or a state or local government entity acting on behalf of such user) regarding cessation of service over the Line either is pending with the Surface Transportation Board or any U.S. District Court or has been decided in favor of a complainant within the two-year period; and (4) the requirements at 49 CFR 1105.12 (newspaper publication) and 49 CFR 1152.50(d)(1) (notice to governmental agencies) have been met.</P>
                <P>
                    As a condition to this exemption, any employee adversely affected by the discontinuance of service shall be protected under 
                    <E T="03">Oregon Short Line Railroad—Abandonment Portion Goshen Branch Between Firth &amp; Ammon, in Bingham &amp; Bonneville Counties, Idaho,</E>
                     360 I.C.C. 91 (1979). To address whether this condition adequately protects affected employees, a petition for partial revocation under 49 U.S.C. 10502(d) must be filed.
                </P>
                <P>
                    Provided no formal expression of intent to file an offer of financial assistance (OFA) 
                    <SU>1</SU>
                    <FTREF/>
                     to subsidize continued rail service has been received, this exemption will be effective on May 17, 2025, unless stayed pending reconsideration. Petitions to stay that do not involve environmental issues must be filed by April 25, 2025. Formal expressions of intent to file an OFA to subsidize continued rail service under 49 CFR 1152.27(c)(2) 
                    <SU>2</SU>
                    <FTREF/>
                     must be filed by April 28, 2025.
                    <SU>3</SU>
                    <FTREF/>
                     Petitions for reconsideration must be filed by May 7, 2025.
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         Persons interested in submitting an OFA to subsidize continued rail service must first file a formal expression of intent to file an offer, indicating the intent to file an OFA for subsidy and demonstrating that they are preliminarily financially responsible. 
                        <E T="03">See</E>
                         49 CFR 1152.27(c)(2)(i).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         The filing fee for OFAs can be found at 49 CFR 1002.2(f)(25).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>3</SU>
                         Because this is a discontinuance proceeding and not an abandonment, interim trail use/railbanking and public use conditions are not appropriate. Because there will be an environmental review during abandonment, this discontinuance does not require environmental review.
                    </P>
                </FTNT>
                <P>All pleadings, referring to Docket No. AB 55 (Sub-No. 820X), must be filed with the Surface Transportation Board either via e-filing on the Board's website or in writing addressed to 395 E Street SW, Washington, DC 20423-0001. A copy of each pleading filed with the Board must be sent to CSXT's representative, Louis E. Gitomer, Law Offices of Louis E. Gitomer, LLC, 600 Baltimore Avenue, Suite 301, Towson, MD 21204.</P>
                <P>If the verified notice contains false or misleading information, the exemption is void ab initio.</P>
                <P>
                    Board decisions and notices are available at 
                    <E T="03">www.stb.gov.</E>
                </P>
                <SIG>
                    <DATED>Decided: April 11, 2025.</DATED>
                    <P>By the Board, Scott M. Zimmerman, Acting Director, Office of Proceedings.</P>
                    <NAME>Jeffrey Herzig,</NAME>
                    <TITLE>Clearance Clerk.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06548 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4915-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">SURFACE TRANSPORTATION BOARD</AGENCY>
                <DEPDOC>[Docket No. FD 36486 (Sub-No. 8)]</DEPDOC>
                <SUBJECT>Grainbelt Corporation—Trackage Rights Exemption—BNSF Railway Company</SUBJECT>
                <P>
                    Grainbelt Corporation (GNBC), a Class III rail carrier, has filed a verified notice of exemption under 49 CFR 1180.2(d)(7) to extend the term of the previously 
                    <PRTPAGE P="16422"/>
                    amended, local trackage rights on trackage owned by BNSF Railway Company (BNSF) between approximately milepost 668.73 in Long, Okla., and approximately milepost 723.30 in Quanah, Tex. (the Line). The trackage rights allow GNBC to (1) use the Line to access the Plains Cotton Cooperative Association (PCCA) facility near BNSF Chickasha Subdivision milepost 688.6 at Altus, Okla., and (2) operate additional trains on the Line to accommodate the movement of trains transporting BNSF customers' railcars (loaded or empty) located along the Line, to unit train facilities on the Line (collectively, the PCCA Trackage Rights).
                    <SU>1</SU>
                    <FTREF/>
                     GNBC and BNSF have entered into an amendment to extend the PCCA Trackage Rights until March 30, 2026.
                    <SU>2</SU>
                    <FTREF/>
                </P>
                <FTNT>
                    <P>
                        <SU>1</SU>
                         GNBC states that it originally acquired overhead trackage rights from BNSF's predecessor between Snyder Yard at milepost 664.00 and Quanah at milepost 723.30, allowing GNBC to interchange at Quanah with BNSF and Union Pacific Railroad Company. According to GNBC, these original trackage rights were amended over the years to allow various local services to be provided. In 2021, BNSF and GNBC amended the trackage rights to include the PCCA Trackage Rights, 
                        <E T="03">see Grainbelt Corp.—Trackage Rts. Exemption—BNSF Ry.,</E>
                         FD 36486 (STB served Mar. 12, 2021), and those trackage rights were extended in 2022, 
                        <E T="03">see Grainbelt Corp.—Trackage Rts. Exemption—BNSF Ry.,</E>
                         FD 36486 (Sub No. 2) (STB served Mar. 8, 2022), in 2023, 
                        <E T="03">see Grainbelt Corp—Trackage Rts. Exemption—BNSF Ry.,</E>
                         FD 36486 (Sub-No. 4) (STB served Mar. 9, 2023) and again in 2024, 
                        <E T="03">see Grainbelt Corp.—Trackage Rts. Exemption—BNSF Ry.,</E>
                         FD 36486 (Sub No. 6) (STB served Mar. 15, 2024).
                    </P>
                </FTNT>
                <FTNT>
                    <P>
                        <SU>2</SU>
                         GNBC states that its verified notice is related to a petition for partial revocation, in which GNBC seeks authority to allow the trackage rights at issue here to expire automatically on March 30, 2026, the termination date set forth in the amended trackage rights agreement. GNBC's petition for partial revocation will be addressed in a separate decision in Docket No. FD 36486 (Sub-No. 9).
                    </P>
                </FTNT>
                <P>The transaction may be consummated on or after May 1, 2025, the effective date of the exemption (30 days after the verified notice was filed).</P>
                <P>
                    As a condition to this exemption, any employees affected by the acquisition of the trackage rights will be protected by the conditions imposed in 
                    <E T="03">Norfolk &amp; Western Railway—Trackage Rights—Burlington Northern, Inc.,</E>
                     354 I.C.C. 605 (1978), as modified in 
                    <E T="03">Mendocino Coast Railway—Lease &amp; Operate—California Western Railroad,</E>
                     360 I.C.C. 653 (1980).
                </P>
                <P>If the verified notice contains false or misleading information, the exemption is void ab initio. Petitions to revoke the exemption under 49 U.S.C. 10502(d) may be filed at any time. The filing of a petition to revoke will not automatically stay the effectiveness of the exemption. Petitions for stay must be filed no later than April 24, 2025 (at least seven days before the exemption becomes effective).</P>
                <P>All pleadings, referring to Docket No. FD 36486 (Sub-No. 8), must be filed with the Surface Transportation Board either via e-filing on the Board's website or in writing addressed to 395 E Street SW, Washington, DC 20423-0001. In addition, a copy of each pleading must be served on GNBC's representative, Eric M. Hocky, Clark Hill PLC, Two Commerce Square, 2001 Market Street, Suite 2620, Philadelphia, PA 19103.</P>
                <P>According to GNBC, this action is categorically excluded from environmental review under 49 CFR 1105.6(c) and from historic preservation reporting requirements under 49 CFR 1105.8(b).</P>
                <P>
                    Board decisions and notices are available at 
                    <E T="03">www.stb.gov.</E>
                </P>
                <SIG>
                    <DATED>Decided: April 14, 2025.</DATED>
                    <P>By the Board, Scott M. Zimmerman, Acting Director, Office of Proceedings.</P>
                    <NAME>Brendetta Jones,</NAME>
                    <TITLE>Clearance Clerk.</TITLE>
                </SIG>
            </PREAMB>
            <FRDOC>[FR Doc. 2025-06583 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4915-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF TRANSPORTATION</AGENCY>
                <SUBAGY>Federal Motor Carrier Safety Administration</SUBAGY>
                <DEPDOC>[Docket No. FMCSA-2025-0085]</DEPDOC>
                <SUBJECT>Parts and Accessories Necessary for Safe Operation; Application for Exemption From Yarde Metals, Inc. (USDOT #299202)</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Federal Motor Carrier Safety Administration (FMCSA), Department of Transportation (DOT).</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice of application for exemption; request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>FMCSA requests public comment on an application from Yarde Metals, Inc. (Yarde Metals, USDOT No. 299202) for an exemption from the requirement that all exterior lighting devices be steady burning. The exemption would allow Yarde Metals to use an amber brake-activated pulsating lamp on its commercial motor vehicles (CMVs) in addition to the steady-burning brake lamps required by the Federal Motor Carrier Safety Regulations (FMCSRs).</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Comments must be received on or before May 19, 2025.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>You may submit comments identified by Docket Number FMCSA-2025-0085 by any of the following methods:</P>
                    <P>
                        • 
                        <E T="03">Federal eRulemaking Portal: www.regulations.gov.</E>
                         See the Public Participation and Request for Comments section below for further information.
                    </P>
                    <P>
                        • 
                        <E T="03">Mail:</E>
                         Dockets Operations, U.S. Department of Transportation, 1200 New Jersey Avenue SE, West Building, Ground Floor, Washington, DC 20590-0001.
                    </P>
                    <P>
                        • 
                        <E T="03">Hand Delivery or Courier:</E>
                         1200 New Jersey Avenue SE, West Building, Ground Floor, Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays.
                    </P>
                    <P>
                        • 
                        <E T="03">Fax:</E>
                         (202) 493-2251.
                    </P>
                    <P>
                        Each submission must include the Agency name and the docket number (FMCSA-2025-0085) for this notice. Note that DOT posts all comments received without change to 
                        <E T="03">www.regulations.gov,</E>
                         including any personal information included in a comment. Please see the Privacy Act heading below.
                    </P>
                    <P>
                        <E T="03">Docket:</E>
                         To view any documents mentioned as being available in the docket, go to 
                        <E T="03">https://www.regulations.gov/docket/FMCSA-2025-0085/document</E>
                         and choose the document to review. To view comments, click this notice, then click “Browse Comments.” If you do not have access to the internet, you may view the docket online by visiting Dockets Operations on the ground floor of the DOT West Building, 1200 New Jersey Avenue SE, Washington, DC 20590-0001, between 9 a.m. and 5 p.m., Monday through Friday, except Federal holidays. To be sure someone is there to help you, please call (202) 366-9317 or (202) 366-9826 before visiting Dockets Operations.
                    </P>
                    <P>
                        <E T="03">Privacy Act:</E>
                         In accordance with 49 U.S.C. 31315(b), DOT solicits comments from the public to better inform its exemption process. DOT posts these comments, including any personal information the commenter provides, to 
                        <E T="03">www.regulations.gov,</E>
                         as described in the system of records notice DOT/ALL-14 FDMS (Federal Docket Management System (FDMS)), which can be reviewed at 
                        <E T="03">https://www.transportation.gov/individuals/privacy/privacy-act-system-records-notices.</E>
                         The comments are posted without edit and are searchable by the name of the submitter.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Mr. David Sutula, Vehicle and Roadside Operations Division, Office of Carrier, Driver, and Vehicle Safety, FMCSA; (202) 366-9209; 
                        <E T="03">MCPSV@dot.gov.</E>
                         If you have questions on viewing or submitting material to the docket, contact Dockets Operations at (202) 366-9826.
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">
                    SUPPLEMENTARY INFORMATION:
                    <PRTPAGE P="16423"/>
                </HD>
                <HD SOURCE="HD1">I. Public Participation and Request for Comments</HD>
                <P>FMCSA encourages you to participate by submitting comments and related materials.</P>
                <HD SOURCE="HD2">A. Submitting Comments</HD>
                <P>If you submit a comment, please include the docket number for this notice (FMCSA-2025-0085), indicate the specific section of this document to which the comment applies, and provide a reason for suggestions or recommendations. You may submit your comments and material online or by fax, mail, or hand delivery, but please use only one of these means. FMCSA recommends that you include your name and a mailing address, an email address, or a phone number in the body of your document so the Agency can contact you if it has questions regarding your submission.</P>
                <P>
                    To submit your comment online, go to 
                    <E T="03">https://www.regulations.gov/docket/FMCSA-2025-0085/document,</E>
                     click on this notice, click “Comment,” and type your comment into the text box on the following screen.
                </P>
                <P>
                    If you submit your comments by mail or hand delivery, submit them in an unbound format, no larger than 8
                    <FR>1/2</FR>
                     by 11 inches, suitable for copying and electronic filing.
                </P>
                <P>FMCSA will consider all comments and material received during the comment period. Comments received after the comment closing date will be filed in the public docket and will be considered to the extent practicable.</P>
                <HD SOURCE="HD2">B. Confidential Business Information (CBI)</HD>
                <P>
                    CBI is commercial or financial information that is both customarily and actually treated as private by its owner. Under the Freedom of Information Act (5 U.S.C. 552), CBI is exempt from public disclosure. If your comments responsive to the notice contain commercial or financial information that is customarily treated as private, that you actually treat as private, and that is relevant or responsive to the notice, it is important that you clearly designate the submitted comments as CBI. Please mark each page of your submission that constitutes CBI as “PROPIN” to indicate it contains proprietary information. FMCSA will treat such marked submissions as confidential under the Freedom of Information Act, and they will not be placed in the public docket of the notice. Submissions containing CBI should be sent to Brian Dahlin 
                    <E T="03">brian.g.dahlin@dot.gov,</E>
                     Chief, Regulatory Evaluation Division, Office of Policy, FMCSA, 1200 New Jersey Avenue SE, Washington, DC 20590-0001 or via email at 
                    <E T="03">brian.g.dahlin@dot.gov.</E>
                     At this time, you need not send a duplicate hardcopy of your electronic CBI submissions to FMCSA headquarters. Any comments FMCSA receives not specifically designated as CBI will be placed in the public docket for this notice.
                </P>
                <HD SOURCE="HD1">II. Legal Basis</HD>
                <P>
                    FMCSA has authority under 49 U.S.C. 31136(e) and 31315(b) to grant exemptions from the Federal Motor Carrier Safety Regulations. FMCSA must publish a notice of each exemption request in the 
                    <E T="04">Federal Register</E>
                     (49 CFR 381.315(a)). The Agency must provide the public an opportunity to inspect the information relevant to the application, including the applicant's safety analysis. The Agency must provide an opportunity for public comment on the request.
                </P>
                <P>
                    The Agency reviews safety analyses and public comments submitted and determines whether granting the exemption would likely maintain a level of safety equivalent to, or greater than, the level that would be achieved absent such exemption, pursuant to the standard in 49 U.S.C. 31315(b)(1). The Agency must publish its decision in the 
                    <E T="04">Federal Register</E>
                     (49 CFR 381.315(b)). If granted, the notice will identify the regulatory provision from which the applicant will be exempt, the effective period, and all terms and conditions of the exemption (49 CFR 381.315(c)(1)). If the exemption is denied, the notice will explain the reason for the denial (49 CFR 381.315(c)(2)). The exemption may be renewed (49 CFR 381.300(b)).
                </P>
                <HD SOURCE="HD1">III. Applicant's Request</HD>
                <P>Yarde Metals seeks an indefinite exemption from the requirement in 49 CFR 393.25(e) that all exterior lamps (both required lamps and any additional lamps) be steady burning, except for turn signal lamps, hazard warning signal lamps, school bus warning lamps, amber warning lamps or flashing warning lamps on tow trucks and CMVs transporting oversized loads, and warning lamps on emergency and service vehicles authorized by State or local authorities.</P>
                <P>Yarde Metals asserts that the use of Amber Brake-Activated Pulsating Lamps (“Pulsating Lamps”) on its fleet of CMVs, in addition to the steady-burning brake lamps required under 49 CFR 393.25(e), increases the visibility of CMVs to rear-approaching drivers, thereby reducing the likelihood and risk of rear-end accidents. The Pulsating Lamp is positioned on the rear center outside frame rail of the CMV and activates when the driver presses the brake pedal. Yarde Metals submits that the use of Pulsating Lamps would increase its operational safety levels, citing research by the National Highway Traffic Safety Administration (NHTSA) and the National Safety Council (NSC).</P>
                <P>Yarde Metals states that Section 5222 of the Fixing America's Surface Transportation Act directed FMCSA to adopt a “Beyond Compliance” program to provide special recognition and safety benefits for motor carriers that install advanced safety equipment or adopt fleet safety management tools, technologies, and programs that are geared toward operational safety. In the spirit of the Beyond Compliance program, Yarde Metals is seeking to install the lamps as advanced safety features in addition to those that are already required by the existing rule at 49 CFR 393.25(e).</P>
                <P>A copy of the Yarde Metals application, as well as the NHTSA and NSC materials attached to the application, are included in the docket referenced at the beginning of this notice.</P>
                <HD SOURCE="HD1">IV. Request for Comments</HD>
                <P>In accordance with 49 U.S.C. 31315(b), FMCSA requests public comment from all interested persons on Yarde Metals application for an exemption from 49 CFR 393.25(e) to allow the company to operate CMVs equipped with an Amber Brake-Activated Pulsating Lamp, in addition to the required steady-burning brake lamps.</P>
                <P>All comments received before the close of business on the comment closing date will be considered and will be available for examination in the docket at the location listed under the Addresses section of this notice. Comments received after the comment closing date will be filed in the public docket and will be considered to the extent practicable. In addition to late comments, FMCSA will continue to file, in the public docket, relevant information that becomes available after the comment closing date. Interested persons should continue to examine the public docket for new material.</P>
                <SIG>
                    <NAME>Larry W. Minor,</NAME>
                    <TITLE>Associate Administrator for Policy.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06550 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4910-EX-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <PRTPAGE P="16424"/>
                <AGENCY TYPE="N">DEPARTMENT OF THE TREASURY</AGENCY>
                <SUBAGY>Bureau of the Fiscal Service</SUBAGY>
                <SUBJECT>Proposed Collection of Information: Creditor's Request for Payment of Treasury Securities Belonging to a Decedent's Estate Being Settled Without Administration</SUBJECT>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Department of the Treasury, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act of 1995. Currently the Bureau of the Fiscal Service within the Department of the Treasury is soliciting comments concerning the Creditor's Request For Payment of Treasury Securities Belonging To A Decedent's Estate Being Settled Without Administration.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written comments should be received on or before June 16, 2025 to be assured of consideration.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Direct all written comments and requests for additional information to Bureau of the Fiscal Service, Bruce A. Sharp, Room #4006-A, PO Box 1328, Parkersburg, WV 26106-1328, or 
                        <E T="03">bruce.sharp@fiscal.treasury.gov.</E>
                    </P>
                </ADD>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title:</E>
                     Creditor's Request For Payment of Treasury Securities Belonging To A Decedent's Estate Being Settled Without Administration.
                </P>
                <P>
                    <E T="03">OMB Number:</E>
                     1530-0027.
                </P>
                <P>
                    <E T="03">Form Number:</E>
                     FS Form 1050.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     The information is requested to obtain a creditor's consent to dispose of savings bonds/notes in settlement of a deceased owner's estate without administration.
                </P>
                <P>
                    <E T="03">Current Actions:</E>
                     Extension of a currently approved collection.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Regular.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Individuals or Households.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     2200.
                </P>
                <P>
                    <E T="03">Estimated Time per Respondent:</E>
                     6 minutes.
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     220.
                </P>
                <P>
                    <E T="03">Request for Comments:</E>
                     Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: 1. Whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; 2. the accuracy of the agency's estimate of the burden of the collection of information; 3. ways to enhance the quality, utility, and clarity of the information to be collected; 4. ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and 5. estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.
                </P>
                <SIG>
                    <DATED>Dated: April 11, 2025.</DATED>
                    <NAME>Bruce A. Sharp,</NAME>
                    <TITLE>Bureau PRA Clearance Officer.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06484 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4810-AS-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE TREASURY</AGENCY>
                <SUBAGY>Office of Foreign Assets Control</SUBAGY>
                <SUBJECT>Notice of OFAC Sanctions Action</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Office of Foreign Assets Control, Treasury.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) is publishing the names of one or more persons that have been placed on OFAC's Specially Designated Nationals and Blocked Persons List (SDN List) based on OFAC's determination that one or more applicable legal criteria were satisfied. All property and interests in property subject to U.S. jurisdiction of these persons are blocked, and U.S. persons are generally prohibited from engaging in transactions with them.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This action was issued on April 9, 2025. See Supplementary Information for relevant dates.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        OFAC: Associate Director for Global Targeting, 202-622-2420; Assistant Director for Licensing, 202-622-2480; Assistant Director for Sanctions Compliance, 202-622-2490 or 
                        <E T="03">https://ofac.treasury.gov/contact-ofac.</E>
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <HD SOURCE="HD1">Electronic Availability</HD>
                <P>
                    The SDN List and additional information concerning OFAC sanctions programs are available on OFAC's website: 
                    <E T="03">https://ofac.treasury.gov.</E>
                </P>
                <HD SOURCE="HD1">Notice of OFAC Action</HD>
                <P>On April 9, 2025, OFAC determined that the property and interests in property subject to U.S. jurisdiction of the following persons are blocked under the relevant sanctions authority listed below.</P>
                <GPH SPAN="3" DEEP="640">
                    <PRTPAGE P="16425"/>
                    <GID>EN17AP25.000</GID>
                </GPH>
                <GPH SPAN="3" DEEP="370">
                    <PRTPAGE P="16426"/>
                    <GID>EN17AP25.001</GID>
                </GPH>
                <SIG>
                    <NAME>Lisa M. Palluconi,</NAME>
                    <TITLE>Acting Director, Office of Foreign Assets Control.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06577 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4810-AL-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="S">DEPARTMENT OF THE TREASURY</AGENCY>
                <SUBAGY>Internal Revenue Service</SUBAGY>
                <SUBJECT>Proposed Collection; Comment Request for Regulation Project</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Internal Revenue Service (IRS), Treasury.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice and request for comments.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>The Internal Revenue Service, as part of its continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on continuing information collections, as required by the Paperwork Reduction Act of 1995. The IRS is soliciting comments concerning reporting requirements for notice regarding certain church plan clarifications under section 336 of the PATH Act.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>Written comments should be received on or before June 16, 2025 to be assured of consideration.</P>
                </DATES>
                <ADD>
                    <HD SOURCE="HED">ADDRESSES:</HD>
                    <P>
                        Direct all written comments to Andres Garcia, Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington, DC 20224, or by email to 
                        <E T="03">pra.comments@irs.gov</E>
                        . Include OMB control number 1545-2279 or Notice Regarding Certain Church Plan Clarifications under Section 336 of the PATH Act, in the subject line of the message.
                    </P>
                </ADD>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>
                        Requests for additional information or copies of the notice should be directed to Kerry Dennis at (202) 317-5751, or at Internal Revenue Service, Room 6526, 1111 Constitution Avenue NW, Washington DC 20224, or through the internet, at 
                        <E T="03">Kerry.L.Dennis@irs.gov</E>
                        .
                    </P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P/>
                <P>
                    <E T="03">Title:</E>
                     Notice Regarding Certain Church Plan Clarifications under Section 336 of the PATH Act.
                </P>
                <P>
                    <E T="03">OMB Number:</E>
                     1545-2279.
                </P>
                <P>
                    <E T="03">Regulation Project Number:</E>
                     Notice-2018-81.
                </P>
                <P>
                    <E T="03">Abstract:</E>
                     Notice 2018-81 describes the manner in which taxpayers notify the Internal Revenue Service (IRS) of revocation of an election to aggregate or disaggregate certain church-related organizations from treatment as a single employer under section 414(c)(2)(C) and (D). Churches and church-related organizations are allowed to make elections to aggregate or disaggregate for this purpose under section 414(c)(2)(C) and (D), which were added to the Code by section 336(a) of the Protecting Americans from Tax Hikes Act of 2015 (Pub. L. 114-113 (129 Stat. 2242 (2015)) (PATH Act).
                </P>
                <P>
                    <E T="03">Current Actions:</E>
                     There are no changes to the paperwork burden previously approved by OMB.
                </P>
                <P>
                    <E T="03">Type of Review:</E>
                     Extension of a currently approved collection.
                </P>
                <P>
                    <E T="03">Affected Public:</E>
                     Business or other Not-for-profit; Individuals or households.
                </P>
                <P>
                    <E T="03">Estimated Number of Respondents:</E>
                     3.
                </P>
                <P>
                    <E T="03">Estimated Time per Respondent:</E>
                     2 hours.
                    <PRTPAGE P="16427"/>
                </P>
                <P>
                    <E T="03">Estimated Total Annual Burden Hours:</E>
                     6 hours.
                </P>
                <P>The following paragraph applies to all the collections of information covered by this notice.</P>
                <P>An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless the collection of information displays a valid OMB control number. Books or records relating to a collection of information must be retained if their contents may become material in the administration of any internal revenue law. Generally, tax returns and tax return information are confidential, as required by 26 U.S.C. 6103.</P>
                <P>
                    <E T="03">Request for Comments:</E>
                     Comments submitted in response to this notice will be summarized and/or included in the request for OMB approval. All comments will become a matter of public record. Comments are invited on: (a) whether the collection of information is necessary for the proper performance of the functions of the agency, including whether the information shall have practical utility; (b) the accuracy of the agency's estimate of the burden of the collection of information; (c) ways to enhance the quality, utility, and clarity of the information to be collected; (d) ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology; and (e) estimates of capital or start-up costs and costs of operation, maintenance, and purchase of services to provide information.
                </P>
                <SIG>
                    <DATED>Approved: April 11, 2025.</DATED>
                    <NAME>Kerry L. Dennis,</NAME>
                    <TITLE>Tax Analyst.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06493 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 4830-01-P</BILCOD>
        </NOTICE>
        <NOTICE>
            <PREAMB>
                <AGENCY TYPE="N">DEPARTMENT OF VETERANS AFFAIRS</AGENCY>
                <SUBJECT>Order Suspending the Application of Section 1-402 or 1-404 of Executive Order 12171</SUBJECT>
                <AGY>
                    <HD SOURCE="HED">AGENCY:</HD>
                    <P>Department of Veterans Affairs.</P>
                </AGY>
                <ACT>
                    <HD SOURCE="HED">ACTION:</HD>
                    <P>Notice.</P>
                </ACT>
                <SUM>
                    <HD SOURCE="HED">SUMMARY:</HD>
                    <P>An Executive Order (E.O.), issued on March 27, 2025, provides the Secretary of the Department of Veterans Affairs (VA) with delegated authority to suspend the application of sections of a separate Executive Order to any subdivision of the VA that he supervises, thereby bringing those subdivisions under the coverage of the Federal Service Labor-Management Relations Statute.</P>
                </SUM>
                <DATES>
                    <HD SOURCE="HED">DATES:</HD>
                    <P>This suspension is effective upon publication.</P>
                </DATES>
                <FURINF>
                    <HD SOURCE="HED">FOR FURTHER INFORMATION CONTACT:</HD>
                    <P>Tracey Therit, Chief Human Capital Officer, Office of Human Resources and Administration/Operations, Security and Preparedness, Department of Veterans Affairs, 810 Vermont Ave. NW, Room 265, Washington, DC, Office: (202) 461-0235, Mobile: (202) 359-8960.</P>
                </FURINF>
            </PREAMB>
            <SUPLINF>
                <HD SOURCE="HED">SUPPLEMENTARY INFORMATION:</HD>
                <P>
                    Pursuant to the authority provided to the Secretary of the VA in section 4 of E.O. 14251, 
                    <E T="03">Exclusions from Federal Labor-Management Relations Programs,</E>
                     the VA suspends the application of section 1-402 or 1-404 of Executive Order 12171, as amended, for employees represented by Laborers International Union of North America (LIUNA); Western Federation of Nurses and Health Professionals (WFNHP), Veterans Affairs Staff Nurse Council (VASNC) Local 5032 at the VA Medical Center Milwaukee, WI; International Association of Fire Fighters (IAFF-99) at the VA Medical Center, Little Rock, AR; United Nurses Association of California/Union of Healthcare Professionals (UNAC/UHCP) at the VA Medical Center, Loma Linda, CA; Teamsters Union Local 115 at the Department of Veterans Affairs Medical Center, Coatesville, PA; International Brotherhood of Electrical Workers (IBEW) Local 2168 at the Cheyenne WY VA Medical Center; and, International Association of Machinists and Aerospace Workers, (IAMAW) Local 1998 at the VA National Cemetery of the Pacific in Honolulu, HI thereby bringing such employees under the coverage of the Federal Service Labor-Management Relations Statute. The Secretary specifically concurs with the President's determinations as set forth in Executive Order 14251 Section 1(b). Specifically, the Secretary agrees the Department of Veterans Affairs has as a primary function national security work, and the requirements of Chapter 71 of title 5 cannot be applied to its operations consistent with national security requirements and considerations.
                </P>
                <HD SOURCE="HD1">Signing Authority</HD>
                <P>Douglas A. Collins, Secretary of Veterans Affairs, approved this document on April 11, 2025, and authorized the undersigned to sign and submit the document to the Office of the Federal Register for publication electronically as an official document of the Department of Veterans Affairs.</P>
                <SIG>
                    <NAME>Michael P. Shores,</NAME>
                    <TITLE>Director, Office of Regulation Policy &amp; Management, Office of General Counsel, Department of Veterans Affairs.</TITLE>
                </SIG>
            </SUPLINF>
            <FRDOC>[FR Doc. 2025-06566 Filed 4-16-25; 8:45 am]</FRDOC>
            <BILCOD>BILLING CODE 8320-01-P</BILCOD>
        </NOTICE>
    </NOTICES>
    <VOL>90</VOL>
    <NO>73</NO>
    <DATE>Thursday, April 17, 2025</DATE>
    <UNITNAME>Presidential Documents</UNITNAME>
    <NEWPART>
        <PTITLE>
            <PRTPAGE P="16429"/>
            <PARTNO>Part II</PARTNO>
            <PRES>The President</PRES>
            <PNOTICE>Notice of April 15, 2025—Continuation of the National Emergency and of the Emergency Authority Relating to the Regulation of the Anchorage and Movement of Russian-Affiliated Vessels to United States Ports</PNOTICE>
        </PTITLE>
        <PRESDOCS>
            <PRESDOCU>
                <PRNOTICE>
                    <TITLE3>Title 3—</TITLE3>
                    <PRES>
                        The President
                        <PRTPAGE P="16431"/>
                    </PRES>
                    <PNOTICE>Notice of April 15, 2025</PNOTICE>
                    <HD SOURCE="HED">Continuation of the National Emergency and of the Emergency Authority Relating to the Regulation of the Anchorage and Movement of Russian-Affiliated Vessels to United States Ports</HD>
                    <FP>
                        On April 21, 2022, by Proclamation 10371, the President declared a national emergency by reason of a disturbance or threatened disturbance of international relations of the United States and authorized the Secretary of Homeland Security to regulate the anchorage and movement of Russian-affiliated vessels, pursuant to the National Emergencies Act (50 U.S.C. 1601 
                        <E T="03">et seq.</E>
                        ) and section 1 of title II of Public Law 65-24, ch. 30, June 15, 1917, as amended (Magnuson Act) (46 U.S.C. 70051).
                    </FP>
                    <FP>The policies and actions of the Government of the Russian Federation continue to constitute a national emergency by reason of a disturbance or threatened disturbance of international relations of the United States. Therefore, in accordance with section 202(d) of the National Emergencies Act (50 U.S.C. 1622(d)), I am continuing for 1 year the national emergency with respect to the Russian Federation and the emergency authority relating to the regulation of the anchorage and movement of Russian-affiliated vessels to United States ports set out in Proclamation 10371.</FP>
                    <FP>
                        This notice shall be published in the 
                        <E T="03">Federal Register</E>
                         and transmitted to the Congress.
                    </FP>
                    <GPH SPAN="1" DEEP="80" HTYPE="RIGHT">
                        <GID>Trump.EPS</GID>
                    </GPH>
                    <PSIG> </PSIG>
                    <PLACE>THE WHITE HOUSE,</PLACE>
                    <DATE>April 15, 2025.</DATE>
                    <FRDOC>[FR Doc. 2025-06799</FRDOC>
                    <FILED>Filed 4-16-25; 11:15 am]</FILED>
                    <BILCOD>Billing code 3395-F4-P</BILCOD>
                </PRNOTICE>
            </PRESDOCU>
        </PRESDOCS>
    </NEWPART>
</FEDREG>
