On July 23, 2026, Cboe BZX Exchange, Inc. (the “Exchange” or “BZX”) filed with the Securities and Exchange Commission (the “Commission”), pursuant to Section 19(b)(1) of the Securities Exchange Act ( printed page 48958) of 1934 (“Act”) ^[1] and Rule 19b-4 thereunder (“Rule 19b-4”),^[2] a proposed rule change to amend BZX Rule 14.11(e)(4) to modify the generic listing standards for Commodity-Based Trust Shares. The proposed rule change is 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 and is approving the proposed rule change (the “Proposal”), on an accelerated basis.

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

Cboe BZX Exchange, Inc. (“BZX” or the “Exchange”) is filing with the Securities and Exchange Commission (“Commission” or “SEC”) a proposed rule change to amend Rule 14.11(e)(4) to modify the generic listing standards for Commodity-Based Trust Shares to: (1) allow for a buffer of up to 15% of the net asset value (“NAV”) of the Commodity-Based Trust Shares holdings to consist of certain assets that do not meet the eligibility criteria under the generic listing standards; (2) add a definition for digital commodity; and (3) allow for actively-managed strategies. The text of the proposed rule change is provided in Exhibit 5.

The text of the proposed rule change is also available on the Commission's website ( https://www.sec.gov/​rules/​sro.shtml), the Exchange's website ( https://www.cboe.com/​us/​equities/​regulation/​rule_​filings/​bzx/​), 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 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 previously received approval to adopt generic listing standards (“GLS”) for Commodity-Based Trust Shares under Rule 14.11(e)(4).^[3] The Exchange now proposes to amend Rule 14.11(e)(4) to modify the GLS for Commodity-Based Trust Shares to (1) allow for a buffer of up to 15% of the NAV of the Commodity-Based Trust Shares holdings to consist of certain assets that do not meet the GLS eligibility criteria; (2) add a definition for digital commodity; and (3) allow for actively-managed Commodity-Based Trust Shares.^[4] Each change is discussed in detail below.

15% Buffer and Digital Commodity

Today, the GLS in Rule 14.11(e)(4)(C)(i) contemplates that Commodity-Based Trust Shares may hold one or more commodities or Commodity-Based Assets,^[5] and, in addition to such commodities or Commodity-Based Assets, may hold securities, cash, and Cash Equivalents. Rule 14.11(e)(4)(D) sets forth specific eligibility requirements that the commodity, Commodity-Based Asset, and security holdings of Commodity-Based Trust Shares must meet on an initial and, except for the exchange-traded fund criterion described below, continuing basis. In particular, Rule 14.11(e)(4)(D)(i) sets forth the eligibility requirements for commodity and Commodity-Based Asset holdings of Commodity-Based Trust Shares. Specifically, each commodity or commodity that underlies a Commodity-Based Asset held by the Trust must meet at least one of the following criteria: (a) the commodity trades on a market that is an Intermarket Surveillance Group (“ISG”) member, provided that the Exchange may obtain information about trading in such commodity from the ISG member; (b) the commodity underlies a futures contract that has been made available to trade on a Designated Contract Market for at least six months, provided that the Exchange has a comprehensive surveillance sharing agreement, whether directly or through common membership in ISG, with such Designated Contract Market; or (c) on an initial basis only, an Exchange-Traded Fund designed to provide economic exposure of no less than 40% of its NAV to the commodity lists and trades on a national securities exchange.

These criteria are generally designed to ensure that the Exchange can obtain information regarding trading in the commodities or commodities underlying Commodity-Based Assets held by the Trust issuing the Commodity-Based Trust Shares, which would assist in monitoring trading in such Shares on the Exchange and to deter and detect violations of Exchange rules and applicable federal securities laws, thereby making the Commodity-Based Trust Shares less readily susceptible to fraud and manipulation. In addition, Rule 14.11(e)(4)(D)(ii) sets forth the eligibility requirements for the Trust's security holdings. Specifically, if the Trust holds any securities, each security held by the Trust must meet the criteria of Rule 14.11(i) (Managed Fund Shares), paragraphs (4)(C)(i) and (ii), or, if the security is a listed option, trades on an ISG market. The Commission previously found that the generic listing standards for Managed Fund Shares are consistent with the Act, including the requirements relating to component equity and fixed income securities underlying Managed Fund Shares.^[6] Further, with respect to listed options, ISG membership would help to ensure the availability of information necessary to detect and deter potential manipulations and other trading abuses, thereby making the Commodity-Based Trust Shares less readily susceptible to manipulation.

The Exchange now proposes to amend Rule 14.11(e)(4)(D) to allow up to 15% of the NAV of the Commodity-Based Trust Shares holdings to consist of certain assets that do not meet the GLS eligibility criteria in Rule 14.11(e)(4)(D)(i) and (ii) as described above. Specifically, new Rule 14.11(e)(4)(D)(iii) will provide that, notwithstanding the eligibility requirements described above, up to 15% of the NAV of the Commodity- ( printed page 48959) Based Trust Shares holdings in the aggregate may consist of (1) digital commodities that do not meet the criteria in Rule 14.11(e)(4)(D)(i), or (2) securities that do not meet the criteria in Rule 14.11(e)(4)(D)(ii). For purposes of calculating the 15% limitation, any derivative held by the Trust will be calculated based on its gross notional value.^[7]

In connection with the proposed adoption of the 15% buffer, the Exchange also proposes to add a definition for “digital commodity” in new Rule 14.11(e)(4)(C)(v). As proposed, the term “digital commodity” will mean a commodity that is a digital asset and is intrinsically linked to and derives its value from the programmatic operation of a functional crypto system, as well as supply and demand dynamics, rather than from the expectation of profits from the essential managerial efforts of others. The Exchange is adopting this definition to make clear what types of digital assets may be included within the 15% buffer described above. The Exchange notes that the proposed definition of digital commodity is informed by the joint interpretive guidance issued by the SEC and the Commodity Futures Trading Commission (“CFTC”), effective March 23, 2026.^[8] The Exchange represents that, to the extent legislation is enacted defining “digital commodity” or a substantially similar term, the Exchange will submit a rule filing to conform the definition in the GLS to the statutory definition. The proposed changes would effectively exclude other commodities, such as non-fungible assets or non-fungible collectibles, from being included in the 15% buffer for generically listed Commodity-Based Trust Shares. However, this would not preclude the Exchange from submitting a rule filing pursuant to Section 19(b) of the Act to seek the listing and trading of a Commodity-Based Trust Share that holds other commodities, including commodities that fall outside of the definition of digital commodity, if it determines to do so at a later date. The Exchange notes that generic listing standards are generally intended to apply to products that were known and contemplated at the time of adoption ( e.g., Commodity-Based Trust Shares holding digital commodities). They are not intended to apply to novel products or materially distinct structures that were not considered when the standards were adopted. The Exchange therefore believes it is appropriate to delineate the scope of what can be included in the 15% buffer to digital commodities.

As proposed, the GLS will still require that at least 85% of the NAV of the Commodity-Based Trust Shares holdings be comprised of assets that are already allowed under the GLS.^[9] Further, the Trust must otherwise comply with all applicable requirements of the GLS ( e.g., the website disclosure requirements of Rule 14.11(e)(4)(E)) in order for the Commodity-Based Trust Share to be generically listed. The sponsor of the Commodity-Based Trust Share must monitor compliance with this 85% threshold daily and must promptly notify the Exchange if the Commodity-Based Trust Share breaches this requirement.^[10]

The following examples illustrate how the 15% buffer will be applied:

1. A Commodity-Based Trust Share (“CBTS”) holds $95 million in market value of Bitcoin, Ether, Solana, and XRP, which all presently qualify as eligible commodities under Rule 14.11(e)(4)(D)(i)(b) and (c) ( i.e., each commodity underlies a futures contract that has been trading on an ISG market for at least six months, and has an Exchange-Traded Fund that provides at least 40% economic exposure to the commodity). The CBTS also holds $5 million in market value in several digital commodities that do not presently qualify as eligible commodities under the GLS. Because at least 95% of the Trust's NAV ($95 million/$100 million = 95%) meets the eligibility criteria under Rule 14.11(e)(4)(D)(i)(b) and (c), and the additional 5% consists of digital commodities that do not meet the eligibility criteria, consistent with the 15% buffer, the CBTS would qualify under the proposed generic criteria.

2. A CBTS holds gold and gold futures contracts. Both assets presently qualify as an eligible commodity or Commodity-Based Asset under Rule 14.11(e)(4)(D)(i)(b) because the commodity (gold) underlies gold futures contracts that are listed and trading on an ISG market for at least six months. The gold held by the Trust has a market value of $80 million. The gold futures contract trading unit size is 100 troy ounces and an ounce of gold is currently worth $4,000. The Trust holds 100 gold futures contracts with a gross notional value of $40 million (100 contracts * 100 troy ounces * $4,000). Both the gold and gold futures holdings of $120 million in total (100% of NAV) would meet the eligibility criteria under Rule 14.11(e)(4)(D)(i)(b). As such, the CBTS would qualify under the proposed generic criteria.

3. A CBTS holds bitcoin and OTC call options on a bitcoin ETF. Bitcoin presently qualifies as an eligible commodity under Rule 14.11(e)(4)(D)(i)(b) and (c) ( i.e., bitcoin underlies a futures contract that has been trading on an ISG market for at least six months, and has an Exchange-Traded Fund that provides at least 40% economic exposure to bitcoin). The bitcoin held by the Trust currently has a market value of $100 million. The Trust also holds 5,000 OTC call options (with each option contract representing 100 shares) on a bitcoin ETF with a current market price of $80 per share, resulting in a gross notional value of $40 million (5,000 option contracts * 100 option contract multiplier * $80 share price). Because these options are traded over-the-counter rather than on an ISG market, they do not meet the GLS eligibility criteria for securities under Rule 14.11(e)(4)(D)(ii). Accordingly, only the bitcoin holdings of $100 million, or approximately 71% of NAV ($100 million/$140 million = 71.42%), would meet the GLS eligibility criteria under Rule 14.11(e)(4)(D)(i)(b) and (c). While the CBTS could hold up to 15% of OTC options under the 15% buffer, here, the OTC options exceed the 15% limitation. Accordingly, the CBTS would not qualify under the proposed generic criteria.

The Exchange notes that the proposed 15% buffer for Commodity-Based Trust Shares is consistent with the thresholds recently approved by the Commission for similar digital commodity-based ETPs.^[11] In those filings, the Commission ( printed page 48960) approved the listing and trading of digital commodity-based ETPs holding a diversified portfolio of underlying digital commodities that tracked transparent, rules-based indexes. There, the Commission found that the requirement that the Trusts hold at least 85% of their investments in assets approved by the Commission to underlie an ETP as primary investments (and the rest of their assets in other digital commodities) would enable adequate surveillance of the Shares on the Exchange, and found that the applicable exchange's rules were designed to prevent fraud and manipulation. Although the ETPs in the Grayscale Order and the Bitwise Order were listed under a different listing rule for Trust Units, the Exchange believes that the policy rationale applies with equal force to Commodity-Based Trust Shares listed under Rule 14.11(e)(4). Here, the Exchange is proposing to require that at least 85% of the NAV of the Trust's holdings be composed of assets that already qualify under the GLS ( i.e., commodities, Commodity-Based Assets, and securities that meet the eligibility criteria in Rule 14.11(e)(4)(D), as well as cash and Cash Equivalents). These eligibility criteria are designed to assist the Exchange in monitoring trading in such Shares on the Exchange, thereby mitigating risks around fraud and manipulation. The Exchange is also proposing to limit the 15% buffer to just digital commodities and securities that do not meet the eligibility criteria. The Exchange therefore believes that its proposal strikes an appropriate balance between ensuring that the primary exposure of the ETP is to assets meeting established eligibility standards approved by the Commission, and allowing limited exposure to certain additional assets that enhance diversification and flexibility without undermining market integrity or investor protection.

Actively-Managed Commodity-Based Trust Shares

Rule 14.11(e)(4)(C)(i) currently requires Commodity-Based Trust Shares to be designed to reflect the performance of one or more reference assets or an index of reference assets, less expenses and other liabilities. In other words, Commodity-Based Trust Shares are required to be passively managed under the GLS. The Exchange now proposes to delete this provision, and a similar provision, in the definition of Commodity-Based Trust Shares in order to allow for both passively- and actively-managed strategies. The Exchange will also make non-substantive changes to renumber the paragraphs in the definition of Commodity-Based Trust Shares to reflect the deletion. The Exchange also proposes to add the phrase “consistent with the Trust's investment objective and policies” to align with language in the Exchange's Managed Fund Shares rule in Rule 14.11(i), which governs the listing of actively-managed ETFs today.

The Exchange also proposes to implement additional requirements around material non-public information in Rule 14.11(e)(4)(M) that would apply specifically to actively-managed Commodity-Based Trust Shares. In particular, proposed Rule 14.11(e)(4)(M)(iii) will provide that any person associated with, or an agent of (including a Reporting Authority), the Trust who has access to non-public information regarding the portfolio of the Commodity-Based Trust Shares, including any change thereto, must be subject to procedures designed to prevent the use and dissemination of material non-public information regarding the portfolio. In connection with this change, the Exchange proposes to add a definition for Reporting Authority in proposed Rule 14.11(e)(4)(C)(xii), which would provide that the term “Reporting Authority” with respect to Commodity-Based Trust Shares means an institution or reporting service designated by the Exchange or the Trust as the official source for calculating and reporting information relating to the Commodity-Based Trust Shares, including, but not limited to, its portfolio, the amount of any cash distribution to holders of Commodity-Based Trust Shares, net asset value, or other information relating to the issuance, redemption or trading of Commodity-Based Trust Shares. Each Commodity-Based Trust Shares may have more than one Reporting Authority, each having different functions. In connection with the foregoing changes, the Exchange proposes non-substantive changes to renumber the existing firewall provisions of Rule 14.11(e)(4)(M). These additional requirements are substantively rooted in the current prohibitions against the use and dissemination of material non-public information within the Exchange's rules governing actively-managed ETFs, and would apply to anyone associated with, or is an agent of, the Trust who has access to non-public information regarding the Trust's portfolio. These proposed requirements would apply in addition to what is already required under Rule 14.11(e)(4)(M).^[12] The proposed requirements would provide additional protection against the potential misuse of material, non-public information relating to the Trust's actively-managed portfolio.

Additionally, while actively-managed Commodity-Based Trust Shares would remain subject to the existing trading halt requirements of Rule 14.11(e)(4)(J), the Exchange proposes to amend Rule 14.11(e)(4)(J) to provide that if the Exchange becomes aware that the information required by Rule 14.11(e)(4)(E)(i) is not disseminated to all market participants at the same time, it will halt trading in the Commodity-Based Trust Shares until such time as the information is available to all market participants.^[13] This additional trading halt requirement will help ensure that all market participants have transparency relating to the Trust's ( printed page 48961) underlying portfolio, which information is key to pricing the Commodity-Based Trust Shares, and that no market participant has an unfair informational advantage. Ensuring such transparency relating to the Trust's underlying portfolio for all market participants will help facilitate a fair and orderly market for the Commodity-Based Trust Shares, as well as help to ensure that the Commodity-Based Trust Shares are not susceptible to manipulation.

Actively-managed ETFs have become a significant and growing segment of the U.S. and global ETF markets. For example, in 2024, around 49% of all ETFs launched globally were active, and in the U.S., active ETF launches outnumbered index launches by nearly 4:1.^[14] Active ETFs in the U.S. represent the vast majority of total ETF launches in 2025,^[15] with over a third of U.S. ETF inflows coming from active strategies over the past two years.^[16] By the end of 2025, approximately 83% of the year's new ETFs were actively managed.^[17] The Exchange believes that these figures demonstrate substantial market demand for actively-managed strategies, and that this proposal would benefit investors by providing a transparent, regulated investment vehicle as an alternative to less regulated avenues that investors could use to obtain commodity (including digital commodity) exposure.

2. Statutory Basis

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.^[18] Specifically, the Exchange believes the proposed rule change is consistent with the Section 6(b)(5) ^[19] 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) ^[20] requirement that the rules of an exchange not be designed to permit unfair discrimination between customers, issuers, brokers, or dealers.

The proposed rule change is designed to 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 it would facilitate the listing and trading of additional Commodity-Based Trust Shares, which would enhance competition among market participants, to the benefit of investors and the marketplace. As discussed above, the Exchange is requiring at least 85% of the NAV of the Trust's holdings to be composed of assets that already qualify under the GLS ( i.e., cash and Cash Equivalents, as well as commodities, Commodity-Based Assets, and securities that meet the eligibility criteria in Rule 14.11(e)(4)(D)). By requiring that the primary exposure of Commodity-Based Trust Shares be in assets meeting established eligibility criteria under this Rule, the Exchange believes that its proposal will ensure flexibility for product innovation while maintaining robust investor protections. As discussed above, these eligibility criteria are generally designed to ensure that the Exchange can obtain information regarding trading in the assets held by the Trust issuing the Commodity-Based Trust Shares. This, in turn, would assist in monitoring the trading in such Shares on the Exchange and to deter and detect violations of Exchange rules and applicable federal securities laws, thereby making Commodity-Based Trust Shares less readily susceptible to fraud and manipulation.

The Exchange also believes it is consistent with the Act to add the definition of digital commodity in the GLS, and to clearly delineate that the proposed 15% buffer could only include digital commodities that do not meet the GLS eligibility criteria as well as securities that do not meet the GLS eligibility criteria. As discussed above, this approach provides appropriate specificity as to the types of assets that may be included in the buffer, while maintaining flexibility for product innovation. With novel products that were not contemplated at the time of adoption, the Exchange may submit an individual rule filing pursuant to Section 19(b) of the Act to seek the listing and trading of such Commodity-Based Trust Shares if it determines to do so at a later date. The Exchange believes that the 15% buffer is consistent with the Act for the reasons discussed above and because the Commission has approved comparable 85%/15% thresholds for similar digital commodity-based ETPs.^[21]

The Exchange also believes that the proposed expansion of the GLS to allow for actively-managed Commodity-Based Trust Shares is consistent with the Act. The Exchange notes that the Commission has approved individual rule filings for the listing and trading of actively-managed Commodity-Based Trust Shares.^[22] In approving those products, the Commission found that the applicable generic listing standards, coupled with additional firewall and trading halt representations regarding the listing and trading of the actively-managed product, were designed to prevent fraudulent and manipulative acts and practices and to protect investors and the public interest consistent with Section 6(b)(5) of the Act. Notably, the Commission cited a prior approval order where it had stated, in the context of ETFs, that “the mere addition of active management to a portfolio that would otherwise qualify for generic listing as an index-based ETF should not affect the portfolio's susceptibility to manipulation or the availability of arbitrage between the ETF and its underlying portfolio.” ^[23] The Exchange agrees that this principle holds true for Commodity-Based Trust Shares as well, and believes that the proposed amendments to the GLS to permit actively-managed Commodity- ( printed page 48962) Based Trust Shares are therefore consistent with the Act. As discussed above, the Exchange is adopting safeguards around trading halts and material non-public information that are already in place for other actively-managed products listed and trading on the Exchange today. Further, these actively-managed Commodity-Based Trust Shares would be subject to the same requirements under the GLS that are currently applicable to passively-managed strategies, including requirements related to portfolio transparency, valuation, and dissemination. As the Commission stated in the Prior Approval, consistently applying listing standards across products with economic exposures to the same underlying commodities levels the playing field between issuers, which should promote competition and would more readily afford investors greater investment options. The Exchange believes that extending the GLS to accommodate actively-managed strategies would further this objective by enabling additional issuers to bring innovative products to market through a transparent, regulated framework.

For the above reasons, the Exchange believes that the proposed rule change is consistent with the requirements of Section 6(b)(5) of the Act.

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. To the contrary, the Exchange believes that the proposed rule change would enhance competition by facilitating the listing and trading of additional types of Commodity-Based Trust Shares pursuant to generic listing standards, provided that the applicable requirements are satisfied. Accordingly, the proposal is designed to facilitate product innovation and efficient listing processes, thereby enhancing competition among issuers and listing venues, to the benefit of investors and the marketplace. The Exchange also believes that the proposed change would enhance competition among Commodity-Based Trust Shares by ensuring the application of uniform listing standards.

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 written comment letters on this proposal.

III. 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 torule-comments@sec.gov. Please include file number SR-CboeBZX-2026-061 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-2026-061. 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-CboeBZX-2026-061 and should be submitted on or before August 24, 2026.

IV. Commission's Findings and Order Granting Accelerated Approval of Proposed Rule Change

After careful review, the Commission finds that the Proposal is consistent with the Act and rules and regulations thereunder applicable to a national securities exchange.^[24] In particular, the Commission finds that the Proposal is consistent with Section 6(b)(5) of the Act,^[25] which requires, among other things, that the Exchange's rules be 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 and are not designed to permit unfair discrimination between customers, issuers, brokers, or dealers.

Since the Prior Approval, which established generic listing standards ^[26] for Commodity-Based Trust Shares on the Exchange, the Commission has approved Commodity-Based Trust Shares that hold up to 15% of the portfolio in digital assets not previously approved by the Commission as permissible investments of an exchange-traded product (“ETP”).^[27] In each of the Grayscale Order and the Bitwise Order, the Commission stated that the risks associated with fraud and manipulation are sufficiently mitigated if an ETP holds at least 80% of the investments in assets that do not raise concerns relating to fraud and manipulation.^[28] Accordingly, the Commission found that the requirement that each ETP holds at least 85% of its investments in commodities approved by the Commission to underlie an ETP as primary investments will enable adequate surveillance of the shares on the listing exchange.^[29]

Likewise, since the Prior Approval, the Commission has approved Commodity-Based Trust Shares that are not “designed to reflect the performance of one or more reference assets or an index of reference assets, less expenses and other liabilities,” but are actively managed.^[30] In each of the iShares Approval Order and the T. Rowe Price Approval Order, the Commission stated that, in the context of exchange-traded ( printed page 48963) funds (“ETFs”) registered under the 1940 Act, the mere addition of active management to a portfolio that would otherwise qualify for generic listing as an index-based ETF does not affect the portfolio's susceptibility to manipulation or the availability of arbitrage between the ETF and its underlying portfolio.^[31] The Commission stated that this principle also holds true for Commodity-Based Trust Shares.^[32] Further, the Commission stated that consistently applying listing standards across products with economic exposures to the same underlying commodities levels the playing field between issuers, which should promote competition and would more readily afford investors greater investment options.^[33]

Rule 19b-4(e) provides that the listing and trading of a new derivative securities product by a national securities exchange shall not be deemed a proposed rule change pursuant to paragraph (c)(1) of Rule 19b-4 ^[34] if the Commission has approved, pursuant to Section 19(b) of the Act,^[35] the exchange's trading rules, procedures, and listing standards for the product class that would include the new derivatives securities product, and the exchange has a surveillance program for the product class.^[36] The Exchange proposes to amend its generic listing standards for Commodity-Based Trust Shares to include the 15% buffer and active-management that the Commission has previously considered and approved in separate Rule 19b-4 filings. Accordingly, the Proposal fulfills the intended objective of Rule 19b-4(e) by permitting Commodity-Based Trust Shares that satisfy the requirements previously found to be consistent with the Act to commence trading without public comment and Commission approval.^[37] The Exchange's ability to rely on Rule 19b-4(e) to list and trade additional Commodity-Based Trust Shares that meet the applicable requirements and minimum standards will reduce the time frame for bringing the shares to market and thereby reduce the burdens on issuers and other market participants, while also promoting competition.^[38]

Similarly, the Exchange's proposed additional trading halt and firewall provisions are consistent with the Act.^[39] Because BZX Rule 14.11(e)(4) currently contemplates only passive management,^[40] the Exchange proposes changes designed to address active management of Commodity-Based Trust Shares, namely provisions related to (1) trading halts if Commodity-Based Trust Shares' portfolio information ^[41] is not disseminated to all market participants at the same time,^[42] and (2) procedures designed to prevent the use and dissemination of material non-public portfolio information.^[43] The Exchange's proposed changes are substantively identical to BZX's rule governing the listing and trading of actively managed ETFs,^[44] and apply in addition to what is already required under BZX Rule 14.11(e)(4)(J) and (M). The additional trading halt provision will help to ensure that all market participants have transparency relating to the Commodity-Based Trust Shares' underlying portfolio, which information is key to pricing the shares and that no market participant has an unfair informational advantage. Ensuring such transparency relating to the underlying portfolio for all market participants will help facilitate a fair and orderly market for the Commodity-Based Trust Shares, as well as help to ensure that the Commodity-Based Trust Shares are not susceptible to manipulation. Likewise, the additional firewall provision will provide additional protection against the potential misuse of material, non-public information relating to a Commodity-Based Trust Share's actively-managed portfolio.

Finally, Commodity-Based Trust Shares listed pursuant to BZX Rule 14.11(e)(4), as modified by the Proposal, would be required to comply with all applicable requirements of BZX Rule 14.11(e)(4). In addition, all Commodity-Based Trust Shares listed under BZX Rule 14.11(e)(4) will be subject to the rules and procedures of the Exchange that currently govern the trading of equity securities on the Exchange.^[45] The Exchange would continue to be required to submit a rule filing with the Commission when seeking to list and trade Commodity-Based Trust Shares that do not meet the generic listing standards under BZX Rule 14.11(e)(4), as proposed to be modified.

For the same reasons discussed above, the Commission finds good cause, pursuant to Section 19(b)(2) of the ( printed page 48964) Act,^[46] for approving the proposed rule change prior to the thirtieth day after the date of publication of the notice of the filing thereof in the Federal Register . The Proposal conforms the Exchange's rules to the changes the Commission previously considered and approved for generic listing standards for Commodity-Based Trust Shares.^[47] Accordingly, the Commission finds good cause, pursuant to Section 19(b)(2) of the Act,^[48] to approve the Proposal on an accelerated basis.

V. Conclusion

This approval order is based on all of the Exchange's representations and descriptions in the Proposal, which the Commission has evaluated as discussed above. For the reasons set forth above, the Commission finds, pursuant to Section 19(b)(2) of the Act,^[49] that the Proposal is consistent with the requirements of the Act and the rules and regulations thereunder applicable to a national securities exchange, and in particular, with Section 6(b)(5) of the Act.^[50]

It is therefore ordered, pursuant to Section 19(b)(2) of the Act,^[51] that the proposed rule change (SR-CBOEBZX-2026-061) be, and hereby is, approved on an accelerated basis.