[Federal Register Volume 86, Number 81 (Thursday, April 29, 2021)]
[Notices]
[Pages 22737-22741]
[FR Doc No: 2021-08899]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-91652; File No. SR-CboeBZX-2021-033]

Self-Regulatory Organizations; Cboe BZX Exchange, Inc.; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Rule 19.6.05 To Allow Monday and Wednesday Expirations for Options
Listed Pursuant to the Short Term Option Series Program on the Invesco
QQQ Trust (``QQQ'')

April 23, 2021.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on April 21, 2021, Cboe BZX Exchange, Inc. (the ``Exchange'' or
``BZX'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I and II
below, which Items have been prepared by the Exchange. The Exchange
filed the proposal as a ``non-controversial'' proposed rule change
pursuant to Section 19(b)(3)(A)(iii) of the Act \3\ and Rule 19b-
4(f)(6) thereunder.\4\ The Commission is publishing this notice to
solicit comments on the proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
    \3\ 15 U.S.C. 78s(b)(3)(A)(iii).
    \4\ 17 CFR 240.19b-4(f)(6).

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I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change

    Cboe BZX Exchange, Inc. (the ``Exchange'' or ``BZX Options'')
proposes to amend Rule 19.6.05 to allow Monday and Wednesday
expirations for options listed pursuant to the Short Term Option Series
Program on the Invesco QQQ Trust (``QQQ''). The text of the proposed
rule change is provided in Exhibit 5.
    The text of the proposed rule change is also available on the
Exchange's website (http://markets.cboe.com/us/equities/regulation/rule_filings/bzx/), at the Exchange's Office of the Secretary, and at
the Commission's Public Reference Room.

II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Rule 19.6.05 to allow Monday and
Wednesday expirations for options listed pursuant to the Short Term
Option Series Program on QQQ. The Exchange notes that this proposed
rule change is substantively identical to a rule change recently
adopted by Nasdaq Phlx LLC. (``Phlx''), filed with the Securities and
Exchange Commission (``Commission'').\5\
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    \5\ See Securities Exchange Release No. 91238 (March 2, 2021),
86 FR 13404 (March 8, 2021) (SR-Phlx-2021-10) (Notice of Filing of
Proposed Rule Change To Permit Monday and Wednesday Expirations for
Options Listed Pursuant to the Short Term Option Series Program on
the Invesco QQQ TrustSM).
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    Rule 19.6.05 currently governs the Exchange's Short Term Option
Series Program. The term ``Short Term Option Series'' means a series in
an option class that is approved for listing and trading on the
Exchange in which the series is opened for trading on any Monday,
Tuesday, Wednesday, Thursday or Friday that is a business day and that
expires on the Monday, Wednesday or Friday of the next business week,
or, in the case of a series that is listed on a Friday and expires on a
Monday, is listed one business week and one business day prior to that
expiration. If a Tuesday, Wednesday, Thursday or Friday is not a
business day, the series may be opened (or shall expire) on the first
business day immediately prior to that Tuesday, Wednesday, Thursday or
Friday, respectively. For a series listed pursuant to this section for
Monday expiration, if a Monday is not a business day, the series shall
expire on the first business day immediately following that Monday.\6\
Rule 19.6.05(h) provides that the Exchange may open weekly series for
options on the SPDR S&P 500 ETF Trust (``SPY'') with Monday and
Wednesday expirations. The proposed rule change amends Rule 19.6.05(h)
to also allow Monday and Wednesday expiations for options on QQQ.
Specifically, the proposed rule change amends Rule 19.6.05(h) to
provide that the Exchange may open for trading on any Friday or Monday
that is a business day series of options on the SPDR S&P 500 ETF Trust
(``SPY'') and series of options on the Invesco QQQ Trust (``QQQ'') to
expire on any Monday of the month that is a business day and is not a
Monday on which Quarterly Options Series expire (``Monday SPY
Expirations'' and ``Monday QQQ Expirations''), provided that any Friday
on which the Exchange opens for trading a Monday SPY and QQQ Expiration
is one business week and one business day prior to expiration. The
Exchange may also open for trading on any Tuesday or Wednesday that is
a business day series of SPY options and series of QQQ options to
expire on any Wednesday of the month that is a business day and is not
a Wednesday on which Quarterly Options Series expire (``Wednesday SPY
Expirations'' and ``Wednesday QQQ Expirations''). The Exchange may list
up to five consecutive series of each Monday SPY and QQQ Expirations
and up to five consecutive series of each Wednesday SPY and QQQ
Expirations at one time; the Exchange may have no more than a total of
five of each Monday SPY and QQQ Expirations and no more than a total of
five of each Wednesday SPY and QQQ Expirations. Monday and Wednesday
SPY and QQQ Expirations will be subject to the provisions of this
Rule.\7\ Additionally, the proposed rule change amends Rule 19.6.05(b),
which currently excepts Monday and Wednesday SPY Expirations from the
prohibition on Short Term Option Series expiring in the same week in
which monthly option series on the same class expire, to provide that,
with the exception of Monday and Wednesday SPY and QQQ Expirations, no
Short Term Option Series may expire in the same week in which monthly
option series on the same class expire.
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    \6\ See Rule 16.1, definition of ``Short Term Option Series''.
    \7\ The proposed rule change also updates a reference to
``Monday or Wednesday SPY Expirations'' in Rule 19.6.05 to refer to
``Monday or Wednesday SPY and QQQ Expirations''.
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    The Exchange believes that the introduction of QQQ Monday and
Wednesday Expirations will expand hedging tools available to market
participants and assist in reducing the premium cost of buying
protection. By offering Monday and Wednesday QQQ Expirations, the
proposed rule change will allow market participants to purchase QQQ
based on their timing needs and allow them to more effectively tailor
their investment and hedging strategies.
    The Exchange notes that, pursuant to the definition of Short Term
Option Series,\8\ if the Exchange is not open for business on a
Wednesday, then a Wednesday QQQ Expiration will expire on the first
business day immediately prior to that Wednesday (e.g., Tuesday of that
week). However, regarding Monday QQQ Expirations, if the Exchange is
not open for business on a Monday, then a Monday QQQ Expiration will
expire on the first business day following that Monday (e.g., Tuesday
of that week). This is the same expiration process currently in place
for Monday and Wednesday SPY Expirations. The Exchange believes that it
is appropriate to require Monday expiration series to expire on the
Tuesday of that week, rather than the previous business day (e.g., the
previous Friday), when expiration Monday does not fall on a business
day because the immediately following Tuesday is closer in time to the
scheduled expiration date of the series than the previous Friday.
Therefore, the following business day in this case may be more
representative of anticipated market conditions than the previous
business day. The Exchange notes that, not only are Monday SPY
Expirations treated in the same manner today, but the same applies to
weekly index options listed pursuant to the Nonstandard Expiration
Program.\9\ The Exchange also notes that permitting Monday and
Wednesday QQQ Expirations to expire in the same week as monthly options
series on the same

class, like that of Monday and Wednesday SPY Expirations, is
appropriate because Monday and Wednesday QQQ Expirations and standard
monthly options will not expire on the same trading day, as standard
monthly options expire on Fridays. Additionally, the Exchange believes
that listing Monday and Wednesday QQQ Expirations each week of the
month will provide consistency for investors and mitigate any potential
confusion regarding weekly listings.
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    \8\ See supra note 6.
    \9\ See Rule 29.11(j)(1).
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    The Exchange notes that the interval between strike prices for the
proposed Monday and Wednesday QQQ Expirations are the same as those for
the Monday and Wednesday SPY Expirations and the Short Term Option
Series with Wednesday and Friday expirations.\10\ Specifically, the
proposed Monday and Wednesday QQQ Expirations have a $0.50 strike
interval minimum.\11\ As is the case with other equity options series
listed pursuant to the Short Term Option Series Program, Monday and
Wednesday QQQ Expirations are P.M.-settled. Also, pursuant to Rule
19.6.05(a), the Exchange may open up to 30 Short Term Option Series for
each expiration date in each option class eligible for participation in
the Short Term Option Series Program. This includes Monday and
Wednesday QQQ Expirations for QQQ options. In addition to the 30 series
per class, the Exchange may open Short Term Option Series, including
Monday and Wednesday QQQ Expirations, that are opened by other
securities exchanges in option classes selected by such exchanges under
their respective short term option rules.
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    \10\ See Rule 19.6.05(e).
    \11\ See id.
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    The Exchange does not believe that listing series of P.M.-settled
Monday and Wednesday expirations for options on QQQ will have any
adverse impact on fair and orderly markets as the Exchange already
lists weekly series with the same settlement and expirations for
options on SPY, as well as for weekly index options pursuant to the
Nonstandard Pilot Program,\12\ and has not experienced any issues
regarding adverse market impact in connection with the listing of these
series. The Exchange represents that it has the necessary capacity and
surveillance programs in place to support and properly monitor trading
in the proposed Monday and Wednesday QQQ Expirations. The Exchange
currently deploys such surveillance programs to monitor Monday and
Wednesday SPY Expirations and has not experienced any issues with
capacity in connection with listing Monday and Wednesday SPY
Expirations. The Exchange intends to begin implementation of the
proposed rule change on April 23, 2021, as Phlx intends to begin
listing weekly Monday QQQ Expirations on this date.\13\ The Exchange
will issue a notice of the planned implementation date to its Members
in advance.
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    \12\ See supra note 9.
    \13\ See Options Trader Alert #2021--23, Nasdaq PHLX Introduces
Monday and Wednesday Weekly Expirations For QQQ Options (April 12,
2021) available at: http://www.nasdaqtrader.com/MicroNews.aspx?id=23. Phlx anticipates listing weekly Wednesday QQQ
Expirations on April 27, 2021.
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2. Statutory Basis
    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.\14\ Specifically, the
Exchange believes the proposed rule change is consistent with the
Section 6(b)(5) \15\ 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) \16\ requirement that the rules of an exchange not be
designed to permit unfair discrimination between customers, issuers,
brokers, or dealers.
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    \14\ 15 U.S.C. 78f(b).
    \15\ 15 U.S.C. 78f(b)(5).
    \16\ Id.
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    In particular, the Exchange believes the Short Term Option Series
Program has been successful to date and that listing Monday and
Wednesday QQQ Expirations, like Monday and Wednesday SPY Expirations
already listed for trading, will expand the ability of investors to
effectively hedge risk against market movements stemming from economic
releases or market events that occur throughout the month. The Exchange
believes that offering Monday and Wednesday QQQ Expirations will create
greater trading and hedging opportunities and flexibility for
investors, allowing them to use QQQ options listed pursuant to the
Short Term Option Series Program in a manner more effectively tailored
their investment and hedging objectives. As already noted, the Exchange
currently offers series with the same settlement (P.M.) and expirations
(Monday and Wednesday) for options on SPY and for weekly index options
pursuant to the Nonstandard Pilot Program.\17\ The Exchange again notes
that the proposed rule change is substantively identical to a rule
recently adopted by Phlx and filed with the Commission.\18\
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    \17\ See supra note 9.
    \18\ See supra note 5.
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    The manner in which Monday QQQ Expirations will expire when
expiration Monday lands on a holiday is consistent with the manner in
which Monday SPY Expirations currently expire under the same
circumstances. The Exchange believes that allowing Monday QQQ
Expirations that expire on a holiday to fall on the following business
day, as opposed to the prior business day (as applicable to Wednesday
and Friday expirations that expire on a holiday), removes impediments
to and perfects the mechanism of a free and open market and national by
permitting such Monday expirations to occur closer in time to the
scheduled expiration date of the series, which may be more
representative of anticipated market conditions. Additionally, the
proposed rule change to except Monday and Wednesday QQQ Expirations
from the prohibition on Short Term Option Series expiring in the same
week in which monthly option series on the same class expire is
consistent with the same exception that currently applies to Monday and
Wednesday SPY Expirations.\19\ The proposed rule change is designed to
provide consistency for investors and mitigate any potential confusion
regarding weekly listings each week of the month.
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    \19\ As stated herein, because monthly options expire on
Fridays, Monday and Wednesday weekly options will not land on the
same day.
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    The Exchange does not believe that listing series of P.M.-settled
Monday and Wednesday expirations for options on QQQ will have any
adverse impact on fair and orderly markets as the Exchange already
lists series with the same settlement and expirations for options on
SPY, as well as for weekly index options pursuant to the Nonstandard
Pilot Program,\20\ and has not observed any adverse market impact in
connection with the listing of these series. The Exchange represents
that it already has an adequate surveillance program in place to detect
and deter any manipulative trading in Monday and

Wednesday expirations, including Monday and Wednesday QQQ Expirations,
and that it has the necessary systems capacity to support the listing
and trading of the new series.
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    \20\ See supra note 9.
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B. Self-Regulatory Organization's Statement on Burden on Competition

    The Exchange does not believe that the proposed rule change will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The Exchange does not
believe that the proposed rule change will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act as Monday and Wednesday QQQ
Expirations will be available for quoting and trading on the Exchange
for all market participants. Therefore, all market participants will
equally be able to transact in QQQ series listed with Monday and
Wednesday expirations for trading on the Exchange.
    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 it only
impacts the permissible expirations for an option series listed on the
Exchange. As stated, another options exchange has recently implemented
a substantively identical rule to permit Monday and Wednesday QQQ
expirations on its exchange.\21\ As such, this proposal is a
competitive response that will permit the Exchange to list the same
expirations for series in a multiply-listed option as another options
exchange.
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    \21\ See supra note 5.
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C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others

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

III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action

    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) of the Act \22\ and Rule 19b-
4(f)(6) thereunder.\23\
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    \22\ 15 U.S.C. 78s(b)(3)(A).
    \23\ 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 intention 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 that requirement in this case.
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    A proposed rule change filed pursuant to Rule 19b-4(f)(6) under the
Act normally does not become operative for 30 days after the date of
its filing. However, Rule 19b-4(f)(6)(iii) \24\ permits the Commission
to designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has
requested that the Commission waive the five-day prefiling requirement
and the 30-day operative delay so that the proposal may become
operative immediately upon filing. The Commission notes that it
recently approved Phlx's substantially similar proposal to list and
trade Monday QQQ Expirations and Wednesday QQQ Expirations.\25\ The
Exchange has stated that waiver of the five-day prefiling requirement
and the 30-day operative delay will allow the Exchange to implement the
proposal as a competitive response, permitting the Exchange to list the
same expirations for series in a multiply-listed option as another
options exchange, at the same time that such options exchange intends
to list such series. For these reasons, the Commission believes that
the proposed rule change presents no novel issues and that waiver of
the 30-day operative delay is consistent with the protection of
investors and the public interest, and will allow the Exchange to
remain competitive with other exchanges. Accordingly, the Commission
hereby waives the prefiling requirement and the operative delay and
designates the proposed rule change operative upon filing.\26\
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    \24\ 17 CFR 240.19b-4(f)(6)(iii).
    \25\ See Securities Exchange Act Release No. 91614 (April 20,
2021).
    \26\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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    At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule change should be approved or
disapproved.

IV. Solicitation of Comments

    Interested persons are invited to submit written data, views, and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:

Electronic Comments

     Use the Commission's internet comment form (http://www.sec.gov/rules/sro.shtml); or
     Send an email to<EMAIL_ADDRESS>Please include
File Number SR-CboeBZX-2021-033 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-CboeBZX-2021-033.
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 (http://www.sec.gov/rules/sro.shtml). Copies of the submission, all subsequent amendments,
all written statements with respect to the proposed rule change that
are filed with the Commission, and all written communications relating
to the proposed rule change between the Commission and any person,
other than those that may be withheld from the public in accordance
with the provisions of 5 U.S.C. 552, will be available for website
viewing and printing in the Commission's Public Reference Room, 100 F
Street NE, Washington, DC 20549 on official business days between the
hours of 10:00 a.m. and 3:00 p.m. Copies of the filing also will be
available for inspection and copying at the principal office of the
Exchange. All comments received will be posted without change. Persons
submitting comments are cautioned that we do not redact or edit
personal identifying information from comment submissions. You should
submit only information that you wish to make available publicly. All
submissions should refer to File Number SR-CboeBZX-2021-033 and should
be submitted on or before May 20, 2021.

    For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\27\
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    \27\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Assistant Secretary.
[FR Doc. 2021-08899 Filed 4-28-21; 8:45 am]
BILLING CODE 8011-01-P


[Federal Register: April 17, 2009 (Volume 74, Number 73)]
[Notices]
[Page 17871]
[DOCID:fr17ap09-80]

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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Food and Drug Administration

[Docket No. FDA-2008-N-0272]

Agency Information Collection Activities; Announcement of Office
of Management and Budget Approval; Guidance for Industry: Notification
of a Health Claim or Nutrient Content Claim Based on an Authoritative
Statement of a Scientific Body

AGENCY:  Food and Drug Administration, HHS.

ACTION:  Notice.

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SUMMARY:  The Food and Drug Administration (FDA) is announcing that a
collection of information entitled ``Guidance for Industry:
Notification of a Health Claim or Nutrient Content Claim Based on an
Authoritative Statement of a Scientific Body'' has been approved by the
Office of Management and Budget (OMB) under the Paperwork Reduction Act
of 1995.

FOR FURTHER INFORMATION CONTACT: Jonna Capezzuto, Office of Information
Management (HFA-710), Food and Drug Administration, 5600 Fishers Lane,
Rockville, MD 20857,<PHONE_NUMBER>.

SUPPLEMENTARY INFORMATION: In the Federal Register of September 25,
2008 (73 FR 55516), the agency announced that the proposed information
collection had been submitted to OMB for review and clearance under 44
U.S.C. 3507. 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. OMB has now approved the
information collection and has assigned OMB control number 0910-0374.
The approval expires on December 31, 2011. A copy of the supporting
statement for this information collection is available on the Internet
at http://www.reginfo.gov/public/do/PRAMain.

    Dated: April 10, 2009.
Jeffrey Shuren,
Associate Commissioner for Policy and Planning.
[FR Doc. E9-8836 Filed 4-16-09; 8:45 am]

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