Notice2025-15069

Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 1801, Definitions

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Published
August 8, 2025

Issuing agencies

Securities and Exchange Commission

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<title>Federal Register, Volume 90 Issue 151 (Friday, August 8, 2025)</title>
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[Federal Register Volume 90, Number 151 (Friday, August 8, 2025)]
[Notices]
[Pages 38519-38521]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-15069]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-103635; File No. SR-MIAX-2025-34]


Self-Regulatory Organizations; Miami International Securities 
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change To Amend Exchange Rule 1801, Definitions

August 5, 2025
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'') \1\ and Rule 19b-4 thereunder,\2\ notice is hereby given that 
on July 21, 2025, Miami International Securities Exchange, LLC 
(``MIAX'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'') a proposed rule change as described in 
Items I and II below, which Items have been prepared by the Exchange. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend Interpretation and Policy .01 to 
Exchange Rule 1801 to update the name of an index on which the Exchange 
may list and trade options.
    The text of the proposed rule change is available on the Exchange's 
website at <a href="https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings">https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings</a>, and at MIAX's principal office.

[[Page 38520]]

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 Interpretation and Policy .01 to 
Exchange Rule 1801 to update the table of reporting authorities \3\ for 
indexes on which the Exchange may list and trade options. In 
particular, the Exchange proposes to amend the name of the ``Bloomberg 
US Large Cap Price Return Index'' (the ``B500 Index'') to ``Bloomberg 
500 Index,'' due to Bloomberg Index Services Limited (``BISL'') 
rebranding the B500 Index under the new name ``Bloomberg 500 
Index''.\4\
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    \3\ The term ``reporting authority'' with respect to a 
particular index means the institution or reporting service 
designated by the Exchange as the official source for (1) 
calculating the level of the index from the reported prices of the 
underlying securities that are the basis of the index and (2) 
reporting such level. The reporting authority for each index 
approved for options trading on the Exchange shall be Specified (as 
provided in Rule 1800) in the Interpretations and Policies to Rule 
1801. See Exchange Rule 1801(q).
    \4\ See Index Announcement, Bloomberg US Large Cap Index To Be 
Renamed Bloomberg 500 Index, available at <a href="https://assets.bbhub.io/professional/sites/27/Bloomberg-US-Large-Cap-Index-To-Be-Renamed-Bloomberg-500-Index.pdf">https://assets.bbhub.io/professional/sites/27/Bloomberg-US-Large-Cap-Index-To-Be-Renamed-Bloomberg-500-Index.pdf</a> (last visited July 11, 2025).
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    On March 10, 2025, the Exchange filed its proposal with the 
Securities and Exchange Commission (the ``Commission'') to amend 
certain of the Exchange's rules in connection with the Exchange's plan 
to list and trade options on the B500 Index.\5\ The B500 Index is a 
broad-based, float \6\ market-capitalization-weighted benchmark of the 
500 most highly capitalized U.S.-listed companies.\7\ All constituents 
of the B500 Index \8\ are securities consisting of common stocks, real 
estate investment trusts (``REITs''), and tracking stocks, which are 
primarily listed on a U.S. securities exchange, as provided for in the 
Methodology Guide.\9\ The components of the B500 Index are determined 
from the U.S.-listed companies that have the largest cumulative free-
float market capitalization. Each component security of the B500 Index 
must also meet certain minimum eligibility and liquidity screening 
requirements, as detailed in the Methodology Guide.\10\ Since the 
Commission issued the B500 Approval Order and to date, the Exchange has 
not listed options for trading on the B500 Index for business 
reasons.\11\
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    \5\ See Securities Exchange Act Release No. 102959 (April 30, 
2025), 90 FR 19236 (May 6, 2025) (SR-MIAX-2025-08) (Order Granting 
Approval of a Proposed Rule Change To Amend Certain MIAX Options 
Exchange Rules To Permit the Listing and Trading of Options on the 
Bloomberg US Large Cap Price Return Index) (the ``B500 Approval 
Order'').
    \6\ As part of the construction of the B500 Index, BISL, the 
administrator of the B500 Index, performs a liquidity screening for 
each component security that is initially eligible to be included in 
the B500 Index. Part of the liquidity screening process involves 
removing all securities from the B500 Index that failed the minimum 
free-float shares screening. Free-float shares are used in 
calculation of the B500 Index. BISL calculates the free-float shares 
figure by subtracting shares held by insiders and those deemed to be 
stagnant shareholders from the shares outstanding. Securities should 
have free-float market capitalization equal to or greater than 50% 
of the equity universe minimum size requirement (total market 
capitalization) to be included in the index. See Bloomberg US 
Domestic Equity Indices Methodology, at page 6, dated September 
2024, available at <a href="https://assets.bbhub.io/professional/sites/10/Bloomberg-US-Domestic-Equity-Indices-Methodology.pdf">https://assets.bbhub.io/professional/sites/10/Bloomberg-US-Domestic-Equity-Indices-Methodology.pdf</a> (the 
``Methodology Guide'').
    \7\ See Bloomberg US Large Cap Index Fact Sheet, dated March 31, 
2025, available at <a href="https://assets.bbhub.io/professional/sites/27/Bloomberg-US-Large-Cap-Index-Fact-Sheet.pdf">https://assets.bbhub.io/professional/sites/27/Bloomberg-US-Large-Cap-Index-Fact-Sheet.pdf</a> (the ``Fact Sheet'').
    \8\ In the B500 Approval Order, references to the ``B500 Index'' 
were to the ``Bloomberg US Large Cap Price Return Index,'' as 
described in the Methodology Guide. The Exchange notes that the 
Bloomberg US Large Cap Total Return Index and Bloomberg US Large Cap 
Net Return Index have different calculations than the Bloomberg US 
Large Cap Price Return Index. For example, the Bloomberg US Large 
Cap Total Return Index reflects reinvestment of gross dividends and 
the Bloomberg US Large Cap Net Return Index reflects the 
reinvestment of net of tax dividends. See Methodology Guide, supra 
note 6, at pages 14-15.
    \9\ See Methodology Guide, supra note 6. Each component security 
of the B500 Index must be primarily listed on one of the following 
U.S. securities exchanges: NYSE, NYSE American, NYSE ARCA, IEX, 
NASDAQ CM, NASDAQ GS, NASDAQ GM and CBOE BZX. See id., at page 4.
    \10\ See Methodology Guide, supra note 6, at pages 4-7.
    \11\ As previously represented to the Commission, the Exchange 
will not list for trading B500 Index options until (i) the self-
certification filing by MIAX Futures is past the CFTC's statutory 
review period; and (ii) MIAX Futures has commenced the listing and 
trading of B500 Index futures. See Letter from Joseph W. Ferraro 
III, SVP and Deputy General Counsel, the Exchange, to Vanessa 
Countryman, Commission, dated April 2, 2025, available at <a href="https://www.sec.gov/comments/sr-miax-2025-08/srmiax202508-586555-1695102.pdf">https://www.sec.gov/comments/sr-miax-2025-08/srmiax202508-586555-1695102.pdf</a>. At the time of this filing, MIAX Futures has not yet 
listed B500 Index futures.
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    As announced, BISL plans to rebrand the Bloomberg US Large Cap 
Price Return Index as the Bloomberg 500 Index.\12\ For the avoidance of 
doubt and to keep the name succinct for references across various sites 
and collateral, BISL removed ``Price Return'' from the name of the B500 
Index. However, references to the ``Total Return'' and ``Net Return'' 
derivations of the B500 Index, will be to the ``Bloomberg 500 Total 
Return Index'' or the ``Bloomberg 500 Net Return Index,'' as the case 
may be. Accordingly, the Exchange proposes to amend the table of 
indexes in Exchange Rule 1801, Interpretation and Policy .01, to amend 
the name of the B500 Index from the ``Bloomberg US Large Cap Price 
Return Index'' to ``Bloomberg 500 Index'' under the heading 
``Underlying Index''. The purpose of the proposed rule change is to 
reflect the rebranded name of the B500 Index on which the Exchange is 
authorized to list and trade options. This is to promote transparency 
in its rules and eliminate any potential confusion among market 
participants.
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    \12\ See supra note 4.
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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.\13\ Specifically, the Exchange believes the proposed rule change 
is consistent with the Section 6(b)(5) \14\ 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.
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    \13\ 15 U.S.C. 78f(b).
    \14\ 15 U.S.C. 78f(b)(5).
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    The Exchange believes that the proposed rule change removes 
impediments to and perfects the mechanism of a free and open market a 
national market system, and protects investors and the public interest 
by updating the Exchange's rules listing reporting authorities for 
certain indexes to reflect the rebranded name of the B500 Index on 
which the Exchange is authorized to list and trade options. The 
Exchange believes this promotes transparency in its rules and may 
eliminate any potential confusion

[[Page 38521]]

among market participants. The proposed rule change will have no impact 
on the dissemination of index values of the B500 Index once listed on 
the Exchange, but merely reflects the rebranded name of the B500 Index 
on which the Exchange is authorized to list options. The Exchange 
believes this proposal perfects the mechanism of a free and open market 
a national market system, and protects investors and the public 
interest because, with the proposed rebrand from the ``Bloomberg US 
Large Cap Price Return Index'' to ``Bloomberg 500 Index,'' there will 
be no change to the initial or maintenance listing criteria, expiration 
months, settlement or exercise style of options on the B500 Index. The 
Exchange notes that this proposal is simply to clarify the rebranded 
name of the B500 Index. Values for the B500 Index will continue to be 
disseminated and available to market participants in the same manner 
and in the same intervals.\15\ The Exchange notes that it has not 
listed options on the B500 Index at this time for business reasons.
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    \15\ On April 16, 2025, Miami International Holdings, Inc., the 
parent company of the Exchange, announced that B500 Index values 
began to be disseminated over the Options Price Reporting Authority 
data feed and the MIAX Product Feed. See Press Release, Miami 
International Holdings Begins Publishing Bloomberg 500 Index on OPRA 
and MIAX Data Feeds, dated April 16, 2025, available at <a href="https://www.miaxglobal.com/sites/default/files/alert-files/MIAX_Press_Release_B500_Dissemination_4.16.25_Final.pdf">https://www.miaxglobal.com/sites/default/files/alert-files/MIAX_Press_Release_B500_Dissemination_4.16.25_Final.pdf</a>.
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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.
Intramarket Competition
    The Exchange believes the proposed rule change does not impose any 
burden on intramarket competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change is 
not intended to address competitive issues but rather is concerned 
solely with updating the name of the B500 Index. The proposed rule 
change has no impact on the dissemination of index values for the B500 
Index. Further, the Exchange has not yet listed options for trading on 
the B500 Index.
Intermarket Competition
    The Exchange believes the proposed rule change does not impose any 
burden on intermarket competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule change is 
not intended to address competitive issues but rather is concerned 
solely with updating the name of the B500 Index. The proposed rule 
change has no impact on the dissemination of index values for the B500 
Index. Further, the Exchange has not yet listed options for trading on 
the B500 Index.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    Written comments were neither solicited nor received.

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 \16\ and Rule 19b-
4(f)(6) \17\ thereunder.
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    \16\ 15 U.S.C. 78s(b)(3)(A).
    \17\ 17 CFR 240.19b-4(f)(6).
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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.

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

    <bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
    <bullet> Send an email to <a href="/cdn-cgi/l/email-protection#f183849d94dc929e9c9c949f8582b1829492df969e87"><span class="__cf_email__" data-cfemail="3644435a531b55595b5b535842457645535518515940">[email&#160;protected]</span></a>. Please include 
file number SR-MIAX-2025-34 on the subject line.

Paper Comments

    <bullet> 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-MIAX-2025-34. 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 (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). 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-MIAX-2025-34 and should be submitted on 
or before August 29, 2025.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\18\
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    \18\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-15069 Filed 8-7-25; 8:45 am]
BILLING CODE 8011-01-P


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Indexed from Federal Register on August 8, 2025.

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