[Federal Register Volume 90, Number 161 (Friday, August 22, 2025)]
[Notices]
[Pages 41145-41149]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-16073]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103744; File No. SR-NYSEAMER-2025-51]
Self-Regulatory Organizations; NYSE American LLC; Notice of
Filing and Immediate Effectiveness of Proposed Change To Amend Rule 904
August 19, 2025.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on August 15, 2025, NYSE American LLC (``NYSE American'' or the
``Exchange'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the self-regulatory
organization. The Commission is publishing this notice to solicit
comments on the proposed rule change from interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes to amend Rule 904 (Position Limits) regarding
the position limits for options on the Grayscale Bitcoin Trust ETF
(``GBTC''), the Grayscale Bitcoin Mini Trust ETF (``BTC''), and the
Bitwise Bitcoin ETF (``BITB'') (collectively, the ``Bitcoin ETFs'').
The proposed rule change is available on the Exchange's website at
www.nyse.com and at the principal office of the Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the self-regulatory organization
included statements concerning the purpose of, and basis for, the
proposed rule change and discussed any comments it received on the
proposed rule change. The text of 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.
A. Self-Regulatory Organization's Statement of the Purpose of, and the
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Rule 904 (Position Limits) regarding
the position limits for options on the Bitcoin ETFs. Specifically, the
proposed rule change amends Rule 904, Commentary .07(f) to delete the
25,000-contract position limit for options on each Bitcoin ETF. As a
result, the position limits for Bitcoin ETF options would be determined
in accordance with Rule 904, Commentary .07(a)-(e) and be based on
trading in each Bitcoin ETF during the most-recent six-month period.\4\
This proposal is based on substantially identical rule changes
submitted by NYSE Arca, Inc., the Exchange's affiliated equities
exchange, and approved by the Securities and Exchange Commission
(``Commission'').\5\
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\4\ Pursuant to Rule 905(a)(i), the exercise limits for options
on each Bitcoin ETF are equivalent to the position limits prescribed
for such options in current Rule 904. Therefore, currently, the
exercise limit for options on each Bitcoin ETF is 25,000 contracts.
The proposed rule change would modify the exercise limit for Bitcoin
ETF options to be equivalent to the position limit prescribed in
Rule 904, Commentary .07 (which may be 25,000, 50,000, 75,000,
200,000, or 250,000, depending on the six-month trading volume or
the six-month trading volume and outstanding shares of IBIT). See
Rule 904, Commentary .07(a)-(e).
\5\ See Securities Exchange Act Release Nos. 103567 (July 29,
2025) 90 FR 36253 (August 1, 2025) (SR-NYSEARCA-2025-07) (order
approving NYSE Arca proposed rule change to amend position and
exercise limits for GBTC options) and 103568 (July 29, 2025) 90 FR
36238 (August 1, 2025) (SR-NYSEARCA-2025-10) (order approving NYSE
Arca proposed rule change to amend position and exercise limits for
BTC and BITB options) (together, the ``Arca Approval Orders'').
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Each Bitcoin ETF is an Exchange-Traded Fund (``ETF'') that holds
bitcoin and is listed on NYSE Arca.\6\ On October 18, 2024, the
Commission approved the listing and trading of Bitcoin ETF options on
the Exchange.\7\ The position and exercise limits for options on each
Bitcoin ETF are 25,000 contracts, as set forth in Rule 904, Commentary
.07(f), the lowest available limit.\8\
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\6\ NYSE Arca received approval to list and trade Bitcoin-Based
Commodity-Based Trust Shares in GBTC, BTC, and BITB pursuant to NYSE
Arca Rule 8.201-E(c)(1). See Securities Exchange Act Release Nos.
99306 (January 10, 2024), 89 FR 3008 (January 17, 2024) (Order
Granting Accelerated Approval of Proposed Rule Changes, as Modified
by Amendments Thereto, to list and trade options on, among other
ETFs, GBTC and BITB) (SR-NYSEARCA-2021-90); 100610 (July 26, 2024)
(order approving listing and trading of Commodity-Based Trust Shares
of BTC, among other ETFs), 89 FR 62821 (August 1, 2024) (SR-
NYSEARCA-2023-45). The Exchange began trading Bitcoin ETF options on
November 22, 2024.
\7\ See Securities Exchange Act Release No. 101386 (October 18,
2024), 89 FR 84960 (October 24, 2024) (SR-NYSEAMER-2024-49) (order
approving the listing and trading of options on GBTC, BTC, and BITB,
pursuant to Rule 915, Commentary .10(a) (the ``Bitcoin ETF Options
Approval Order'').
\8\ See Rule 904, Commentary .07(e) and Rule 905(a)(i).
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Per the Commission ``rules regarding position and exercise limits
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 positions.'' \9\ For
this reason, the Commission requires that ``position and exercise
limits must be sufficient to prevent investors from disrupting the
market for the underlying security by acquiring and exercising a number
of options contracts disproportionate to the deliverable supply and
average trading volume of the underlying security.'' \10\ Based on its
review and analysis of the Bitcoin ETF data, the Commission concluded
that the 25,000-contract position limit for options on each Bitcoin ETF
satisfied these objectives.\11\
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\9\ See Bitcoin ETF Options Approval Order, 89 FR at 84971.
\10\ See id.
\11\ See id.
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While the Exchange proposed a 25,000-contract position limit in its
initial rule filing to list and trade Bitcoin ETF options, it
nonetheless believes that evidence existed to support a much higher
position limit. Specifically, when the Commission approved the
Exchange's proposal to permit the listing and trading of Bitcoin ETF
options, it considered and reviewed data analysis that the exercisable
risk associated with a position limit of 25,000 contracts represented
only 0.9% of the outstanding shares of GBTC; 0.7% of the outstanding
shares of BTC; and
[[Page 41146]]
3.6% of the outstanding shares of BITB.\12\ The Commission stated that
it also considered and reviewed the Exchange's statement that with a
position limit of 25,000 contracts on the same side of the market for
each Bitcoin ETF option: (1) with 284,570,100 shares of GBTC
outstanding, 114 market participants would have to simultaneously
exercise their positions to place GBTC under stress; (2) with
366,950,100 shares of BTC outstanding, 147 market participants would
have to simultaneously exercise their positions to place BTC under
stress; and (3) with 68,690,000 shares of BITB outstanding, 27 market
participants would have to simultaneously exercise their positions to
place BITB under stress.\13\ Based on this review, the Commission
concluded that the 25,000-contract position and exercise limit
applicable to Bitcoin ETF options were designed to prevent investors
from disrupting the market for the underlying security by acquiring and
exercising a number of options contracts disproportionate to the
deliverable supply and average trading volume of the underlying
security, and 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.\14\
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\12\ See id. (data as of August 30, 2024).
\13\ See id.
\14\ See id.
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Currently, each Bitcoin ETF option would qualify for the 250,000
contract position (and exercise) limit on same-side contracts pursuant
to Rule 904, Commentary .07(a)(i), which requires that trading volume
for the underlying security in the most-recent six months be at least
100 million shares.\15\ As of November 25, 2024, the market
capitalization and average daily volume (``ADV'') for the preceding
three months for each Bitcoin ETF was as shown in the table below.\16\
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\15\ Rule 904, Commentary .07(a) provides that to be eligible
for the 250,000-contract limit, either (i) the most recent six-month
trading volume of the underlying security must have totaled at least
100,000,000 shares or (ii) the most recent six-month trading volume
of the underlying security must have totaled at least 75,000,000
shares and the underlying must have at least 300,000,000 shares
currently outstanding.
\16\ The market capitalization for each Bitcoin ETF was
determined by multiplying a settlement price (GBTC, $42.16--BTC,
$51.70--BITB) by the number of shares outstanding (GBTC--
273,950,100, BTC--82,939,964, BITB--79,950,100). Data acquired from
FactSet.
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Three-month
Bitcoin ETF Market capitalization ADV (shares)
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GBTC.......................... $20,661,316,542 3,829,597
BTC........................... $3,496,748,882 2,036,369
BITB.......................... $4,095,157,000 2,480,478
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Therefore, each Bitcoin ETF is well-above the requisite 100 million
shares necessary to qualify for the 250,000-contract position and
exercise limit. Also, as of November 25, 2024, there were 19,787,762
bitcoins in circulation.\17\ At a price of $94,830 per bitcoin,\18\
that equates to a market capitalization of greater than $1.876
trillion. If a position limit of 250,000 contracts were considered, the
exercisable risk for each Bitcoin ETF would represent 9.13% (GBTC)
\19\; 30.14% (BTC); \20\ and 31.72% (BITB) \21\ of their respective
shares outstanding. Given each of the Bitcoin ETF's liquidity, the
current 25,000-contract position and exercise limit for options on each
Bitcoin ETF is extremely conservative.
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\17\ See https://www.coingecko.com/en/coins/bitcoin.
\18\ This is the approximate price of bitcoin from 4:00 p.m. ET
on November 25, 2024.
\19\ This percentage is arrived at with this equation: (250,000
contract limit * 100 shares per option/273,950.100 shares
outstanding).
\20\ This percentage is arrived at with this equation: (250,000
contract limit * 100 shares per option/82,939,964 BTC shares
outstanding).
\21\ This percentage is arrived at with this equation: (250,000
contract limit * 100 shares per option/79,950,100 BITB shares
outstanding).
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As noted above, position and exercise limits are designed to limit
the number of options contracts traded on an 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 Rules 904 and 905, 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.
To achieve this balance, the Exchange proposes to remove each
Bitcoin ETF (and their associated 25,000-contract limit) from the table
of position limits in Commentary .07(f), which would enable options on
each Bitcoin ETF to trade in the same manner as options on other ETFs
not included in this Commentary.\22\ Specifically, this proposal would
result in an increased position and exercise limit for options on each
Bitcoin ETF from 25,000 to 250,000 same-side contacts, pursuant to
Commentary .07(a)(i). In addition, like options on other ETFs not
listed in Commentary .07(f), position limits for options on each
Bitcoin ETF would be subject to subsequent six-month reviews to
determine future position and exercise limits.\23\
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\22\ See proposed Rule 904, Commentary .07(f). The Exchange
notes that the ETFs included in Commentary .07(f) (other than
certain ETFs that hold bitcoin) have significantly higher position
limits than are authorized by Rule, which increases were subject to
Exchange rule filings.
\23\ See Rule 904, Commentary .07(e) and Rule 905(a)(i).
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In support of its (now-approved) proposals to amend the position
and exercise limits for options on each Bitcoin ETF, NYSE Arca
performed several analyses, which the Exchange has reviewed and
considered. First, NYSE Arca reviewed each Bitcoin ETF's data relative
to the market capitalization of the entire bitcoin market in terms of
exercise risk and availability of deliverables. As noted above, as of
November 25, 2024, there were 19,787,762 bitcoins in circulation.\24\
At a price of $94,830 per bitcoin,\25\ that equates to a market
capitalization of greater than $1.876 trillion. If a position (and
exercise) limit of 250,000 contracts were considered for each Fund, the
exercisable risk would represent 9.13% of GBTC shares outstanding; \26\
30.14% of BTC shares outstanding \27\ and 31.27% of BITB shares
outstanding.\28\
[[Page 41147]]
Since each Bitcoin ETF has a creation and redemption process managed
through the issuer (whereby bitcoin is used to create shares of GBTC,
BTC or BITB, as applicable), NYSE Arca compared the position (and
exercise) limits sought to the total market capitalization of the
entire bitcoin market, and in that case, the exercisable risk for
options on each Fund would represent less than 0.10% (GBTC), 0.06%
(BTC) or 0.07% (BITB) of all bitcoin outstanding.\29\
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\24\ See https://www.coingecko.com/en/coins/bitcoin.
\25\ This is the approximate price of bitcoin from 4:00 p.m. ET
on November 25, 2024.
\26\ This percentage is arrived at with this equation: (250,000
contract limit * 100 shares per option/273,950.100 shares
outstanding).
\27\ This percentage is arrived at with this equation: (250,000
contract limit * 100 shares per option/82,939,964 BTC shares
outstanding).
\28\ This percentage is arrived at with this equation: (250,000
contract limit * 100 shares per option/79,950,100 BITB shares
outstanding).
\29\ For GBTC, this number was arrived at with this calculation:
((250,000 limit * 100 shares per option * $75.42 settle)/(19,787,762
bitcoin outstanding * $94,830 bitcoin price)); for BTC, this number
was arrived at with this calculation: ((250,000 limit * 100 shares
per option * $42.16 settle)/(19,787,762 bitcoin outstanding *
$94,830 bitcoin price)); and for BITB, this number was arrived at
with this calculation: ((250,000 limit * 100 shares per option *
$51.70 settle)/(19,787,762 bitcoin outstanding * $94,830 bitcoin
price)).
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The Exchange believes this analysis by NYSE Arca demonstrates that
a 250,000-contract position (and exercise) limit for each of GBTC, BTC,
and BITB options would be appropriate given each of these Bitcoin ETF's
liquidity.
Next, NYSE Arca reviewed a position and exercise limit of 250,000
contracts 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), the Exchange examined equivalent bitcoin futures
position limits. In particular, the Exchange looked to the Chicago
Mercantile Exchange (``CME'') bitcoin futures contract,\30\ which has a
position limit of 2,000 futures (for the initial spot month).\31\ On
October 22, 2024, CME bitcoin futures settled at $94,945.\32\ On
October 22, 2024, GBTC settled at $53.64, BTC settled at $29.90 and
BITB settled at $36.74, which would equate to approximately 17,700,410
(GBTC), 31,754,181 (BTC), and 25,842,406 (BITB) shares of each Bitcoin
ETF, respectively, if the CME notional position limit was utilized.
Since substantial portions of any distributed options portfolio are
likely to be out of the money at expiration, an options position limit
equivalent to the CME position limit for Bitcoin futures (considering
that all options deltas are <=1.00) should be a bit higher than the CME
implied 175,578 limit.
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\30\ CME Bitcoin Futures are described in Chapter 350 of CME's
Rulebook.
\31\ See the Position Accountability and Reportable Level Table
in the Interpretations & Special Notices Section of Chapter 5 of
CME's Rulebook. Each CME bitcoin futures contract is valued at five
bitcoins as defined by the CME CF Bitcoin Reference Rate (``BRR'').
See CME Rule 35001.
\32\ 2,000 futures at a 5-bitcoin multiplier (per the contract
specifications) equates to $949,450,000 (2000 contracts * 5 BTC per
contract * $94,945 price of November BTC future) of notional value.
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Of note, 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).\33\ 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 Exchange believes NYSE
Arca's comparison to CME's position limits on bitcoin futures
demonstrates that a 250,000-contract limit for Bitcoin ETF options is
appropriate.
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\33\ See https://www.cmegroup.com/education/courses/market-regulation/position-limits/position-limits-aggregation-of-contracts-and-table.html.
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Further, NYSE Arca analyzed a position and exercise limit of
250,000 for each of the Bitcoin ETFs against options on SPDR Gold
Shares (``GLD''), which like the Bitcoin ETFs, is a commodity-backed
ETF.\34\ The Exchange notes that GLD has a float of 306.1 million
shares and a position limit of 250,000 contracts.\35\ As previously
noted, 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. A position limit exercise in GLD would
represent 8.17% of the float of GLD. In comparison, a 250,000-contract
position limit in each of the Bitcoin ETFs would represent 9.13% of the
float of GBTC; 30.14% of the BTC float; and 31.27% of the BITB float.
While less conservative than the standard applied to options on GLD,
the Exchange nonetheless believes that subjecting options on the
Bitcoin ETFs to a 250,000-contract position and exercise limit would be
appropriate.
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\34\ Like the Bitcoin ETFs, GLD holds one asset in trust.
\35\ See https://www.ssga.com/us/en/intermediary/etfs/spdr-gold-shares-gld.
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Based on the foregoing analyses performed by NYSE Arca, the
Exchange believes that the Bitcoin ETFs have more than sufficient
liquidity to garner an increased position and exercise limit of 250,000
same-side contracts. The Exchange believes that the significant
liquidity present in each of the Bitcoin ETFs mitigates against the
potential for manipulation.
The Exchange believes that allowing Bitcoin ETF options to have
increased position and exercise limits would lead to a more liquid and
competitive market environment for such options, which will benefit
customers that trade these options. Further, the reporting requirement
for such options would remain unchanged. Thus, the Exchange will still
require that each member that maintains positions in Bitcoin ETF
options on the same side of the market, for its own account or for the
account of a customer, report certain information to the Exchange. This
information includes, but would not be limited to, the options
positions, whether such positions are hedged and, if so, a description
of the hedge(s). Market Makers \36\ would continue to be exempt from
this reporting requirement, however, the Exchange may access Market
Maker position information.\37\ Moreover, the Exchange's requirement
that members file reports with the Exchange for any customer who held
aggregate large long or short positions on the same side of the market
of 200 or more option contracts of any single class for the previous
day will remain at this level.\38\
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\36\ Per Rule 920NY(a), a Market Maker is an individual who is
registered with the Exchange for the purpose of making transactions
as a dealer-specialist.
\37\ OCC through the Large option Position Reporting (``LOPR'')
system acts as a centralized service provider for ATP Holder
compliance with position reporting requirements by collecting data
from each ATP Holder consolidating the information, and ultimately
providing detailed listings of each ATP Holder's report to the
Exchange, as well as Financial Industry Regulatory Authority, Inc.
(``FINRA''), acting as its agent pursuant to a regulatory services
agreement (``RSA'').
\38\ See Rule 906. Reporting of Options Positions.
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The Exchange also has no reason to believe that the growth in
trading volume in Bitcoin ETF options will not continue. Rather, the
Exchange expects continued options volume growth in Bitcoin ETF options
as opportunities for investors to participate in the options markets
increase and evolve. The Exchange believes that the current position
and exercise limits in Bitcoin ETF options are restrictive and will
hamper the listed options markets from being able to compete fairly and
effectively with the over-the-counter (``OTC'') markets. OTC
transactions occur through bilateral agreements, the terms of which are
not publicly disclosed to the marketplace. As such, OTC transactions do
not contribute to the price discovery process on a public
[[Page 41148]]
exchange or other lit markets. The Exchange believes that without the
proposed changes to position and exercise limits for Bitcoin ETF
options, market participants will find the 25,000-contract position and
exercise limit an impediment to their business and investment
objectives as well as an impediment to efficient pricing. As a result,
market participants may find the less transparent OTC markets a more
attractive alternative to achieve their investment and hedging
objectives, leading to a retreat from the listed options markets, where
trades are subject to reporting requirements and daily surveillance.
The Exchange notes that, consistent with Rules 904 and 905, the
position (and exercise) limits for Bitcoin ETF options would be
reviewed on a six-month basis, as is done for other options.
The Exchange represents that its existing trading surveillances are
adequate to monitor trading in Bitcoin ETF options. 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
each Bitcoin ETF on other exchanges through ISG. In addition, and as
referenced above, the Exchange has a regulatory services agreement with
FINRA, pursuant to which FINRA conducts certain surveillances on behalf
of the Exchange. Further, pursuant to a multi-party 17d-2 joint plan,
all options exchanges allocate regulatory responsibilities to FINRA to
conduct certain options-related market surveillances.\39\
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\39\ 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. See 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.
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2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Securities Exchange Act of 1934 (the ``Act''),\40\ in
general, and furthers the objectives of Section 6(b)(5) of the Act,\41\
in particular, in that it is designed to prevent fraudulent and
manipulative acts and practices, 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.
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\40\ 15 U.S.C. 78f(b).
\41\ 15 U.S.C. 78f(b)(5).
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In particular, the Exchange believes the proposed rule change will
remove impediments to and perfect the mechanism of free and open market
and a national market system, and, in general, protect investors and
the public interest, because it will provide market participants with
the ability to more effectively execute their trading and hedging
activities. Also, based on current trading volume, the resulting
increase in the position (and exercise) limits for Bitcoin ETF options
may allow Market Makers to maintain their liquidity in these options in
amounts commensurate with the continued high consumer demand in Bitcoin
ETF options. Subjecting Bitcoin ETF options to the position limits in
Rule 904, Commentary .07 and corresponding exercise limits in Rule 905
may also encourage other liquidity providers to continue to trade on
the Exchange rather than shift their volume to OTC markets, which will
enhance the process of price discovery conducted on the Exchange
through increased order flow. The Exchange notes the proposed rule
change would further allow institutional investors to utilize Bitcoin
ETF options for prudent risk management purposes.
In support of the proposed rule change, the Exchange cites the in-
depth analysis Bitcoin ETF options performed which, as noted above,
considered, among other things: (1) the market capitalization and ADV
of each Bitcoin ETF and a 250,000 contract position and exercise limit
in relation to the position limits of options on other securities; (2)
market capitalization of the entire Bitcoin market in terms of exercise
risk and availability of deliverables; and (3) comparing a 250,000
contract position limit to position limits for derivative products
regulated by the CFTC. Based on the Exchange's review of these
analyses, the Exchange believes that subjecting Bitcoin ETF options to
the position (and exercise) limits set forth in Rule 904, Commentary
.07 (which may go up to 250,000 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.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe 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 because all market participants would be subject to
the same position and exercise limits for Bitcoin ETF options. The
Exchange does not believe the proposed rule change will impose any
burden on intermarket competition, and may benefit competition, as the
proposed rule change is identical to NYSE Arca's recently-approved rule
changes.\42\ The Exchange believes that the proposed rule change will
also provide additional opportunities for market participants to
continue to efficiently achieve their investment and trading objectives
for equity options on the Exchange.
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\42\ See Arca Approval Orders.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A)(iii) of the Act \43\ and Rule 19b-4(f)(6) thereunder.\44\
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, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A)
[[Page 41149]]
of the Act \45\ and Rule 19b-4(f)(6) thereunder.\46\
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\43\ 15 U.S.C. 78s(b)(3)(A)(iii).
\44\ 17 CFR 240.19b-4(f)(6).
\45\ 15 U.S.C. 78s(b)(3)(A)(iii).
\46\ 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.
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A proposed rule change filed under Rule 19b-4(f)(6) \47\ under the
Act does not normally become operative prior to 30 days after the date
of the filing. However, pursuant to Rule 19b4(f)(6)(iii),\48\ 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 removal of the 25,000 contract
position and exercise limits for BTC, GBTC, and BITB, such that those
funds will be subject to the position and exercise limits as determined
for equity options for which no set limit has been otherwise
established on that exchange.\49\ The Exchange is proposing similarly
to remove of the 25,000 contract position and exercise limit for BTC,
GBTC, and BITB, such that those funds will be subject to the position
and exercise limits as determined by the position limit rules at Rule
904. The Exchange has provided information regarding BTC, GBTC, and
BITB, including, among other things, information regarding trading
volume, and the market capitalization of BTC, GBTC, and BITB and
surveillance procedures that will apply. The Commission notes that the
proposal raises no new or novel legal issues and would simply provide
an additional venue for trading BTC, GBTC, and BITB with position and
exercise limits that may be higher than 25,000 contracts. 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.\50\
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\47\ 17 CFR 240.19b-4(f)(6).
\48\ 17 CFR 240.19b-4(f)(6)(iii).
\49\ See Arca Approval Orders.
\50\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of such 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 under
Section 19(b)(2)(B) \51\ of the Act to determine whether the proposed
rule change should be approved or disapproved.
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\51\ 15 U.S.C. 78s(b)(2)(B).
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IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
Send an email to [email protected]. Please include
file number SR-NYSEAMER-2025-51 on the subject line.
Paper Comments
Send paper comments in triplicate to Secretary, Securities
and Exchange Commission, 100 F Street NE, Washington, DC 20549-1090.
All submissions should refer to file number SR-NYSEAMER-2025-51. This
file number should be included on the subject line if email is used. To
help the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (https://www.sec.gov/rules/sro.shtml). Copies of the filing 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-2025-51 and should be submitted
on or before September 12, 2025.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\52\
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\52\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-16073 Filed 8-21-25; 8:45 am]
BILLING CODE 8011-01-P