Notice2025-15322
Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Order Approving a Proposed Rule Change To Amend the Exchange's Index Options Rules To Allow the Exchange To List and Trade Options on Micro Narrow-Based Indexes
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 13, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 154 (Wednesday, August 13, 2025)</title>
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[Federal Register Volume 90, Number 154 (Wednesday, August 13, 2025)]
[Notices]
[Pages 39021-39025]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-15322]
[[Page 39021]]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-103641; File No. SR-MIAX-2025-27]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Order Approving a Proposed Rule Change To Amend the
Exchange's Index Options Rules To Allow the Exchange To List and Trade
Options on Micro Narrow-Based Indexes
August 8, 2025.
I. Introduction
On June 25, 2025, Miami International Securities Exchange, LLC
(``MIAX'' or ``Exchange'') filed with the Securities and Exchange
Commission (``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and
Rule 19b-4 thereunder,\2\ a proposal to amend the Exchange's index
option rules to permit the listing and trading of options on micro
narrow-based indexes. The proposed rule change was published for
comment in the Federal Register on July 8, 2025.\3\ The Commission
received no comments on the proposed rule change. This order grants
approval of the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 103376 (July 2,
2025), 90 FR 30177 (SR-MIAX-2025-27) (``Notice'').
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II. Description of the Proposed Rule Change
The Exchange proposes to amend its listing rules for index options,
as set forth in Chapter XVIII of its rules, to permit, as other
exchanges do already, the listing and trading of micro narrow-based
index options. Specifically, consistent with the rules of other
exchanges, the Exchange proposes to (1) adopt a definition of a micro
narrow-based index; (2) establish initial listing standards and
maintenance standards for micro narrow-based indexes; and (3) adopt
rules regarding position limits and exercise limits for options on
micro narrow-based indexes. The specific changes are discussed below.
A. Definition of Micro-Narrow Based Index
The Exchange proposes to add Rule 1801(m) defining micro narrow-
based index as an industry or narrow-based index that meets the
specific criteria provided under Rule 1802(f), which sets forth the
proposed initial listing criteria for micro narrow-based indexes.\4\
The Exchange states that the proposed definition is identical to the
definition of micro narrow-based indexes in the rules of Cboe Exchange,
Inc. (``Cboe'').\5\
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\4\ Notice, supra note 3, at 30178. See infra Section II.B for
discussion of the initial listing standards proposed in Rule
1802(f).
\5\ Id. at 30178 n.4 (citing the definition of a micro narrow-
based index at Cboe Rule 4.11). To reflect the addition of
subparagraph (m), the Exchange also proposes to renumber current
subparagraphs (m)-(t) of Rule 1801 as subparagraphs (n)-(u). Id.
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B. Proposed Initial Listing Criteria
The Exchange proposes in Rule 1802(f) to set forth the initial
listing standards for a micro narrow-based index. In addition, the
Exchange proposes to permit trading of options on a micro narrow-based
index pursuant to Rule 19b-4(e) \6\ under the Act if several conditions
are satisfied.\7\
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\6\ 17 CFR 240.19b-4(e).
\7\ Id. at 30178-79. The Exchange states that its proposed
initial listing standards are substantially similar to the initial
listing standards set forth in Cboe and MEMX LLC (``MEMX'') rules.
See id. at 30179 n.6 and accompanying text. See also Cboe Rule
4.10(d) and MEMX Rule 29.6(d).
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Specifically, proposed Rule 1802(f)(1) requires that the index is a
security index (i) that has nine or fewer component securities; (ii) in
which a component security comprises more than 30% of the index's
weighting; (iii) in which the five highest weighted component
securities in the aggregate comprise more than 60% of the index's
weighting; or (iv) in which the lowest weighted component securities
comprising, in the aggregate, 25% of the index's weighting have an
aggregate dollar value of average daily trading volume of less than
$50,000,000 (or in the case of an index with 15 or more component
securities, $30,000,000) except that if there are two or more
securities with equal weighting that could be included in the
calculation of the lowest weighted component securities comprising, in
the aggregate, 25% of the index's weighting, such securities shall be
ranked from lowest to highest dollar value of average daily trading
volume and shall be included in the calculation based on their ranking
starting with the lowest ranked security.\8\
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\8\ Id. at 30178.
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Proposed Rule 1802(f)(2) requires the index to be capitalization-
weighted, modified capitalization-weighted, price-weighted, share
weighted, equal dollar-weighted, approximate equal-dollar weighted, or
modified equal-dollar weighted.\9\ Proposed Rule 1802(f)(2)(i) defines
an approximate equal-dollar weighted index, for the purposes of
proposed Rule 1802(f), as composed of one or more securities in which
each component security will be weighted equally based on its market
price on the index's selection date, and the index must be
reconstituted and rebalanced if the notional value of the largest
component is at least twice the notional volume of the smallest
component for 50% or more of the trading days in the three months prior
to December 31 of each year.\10\ The proposed rule provides that
reconstitution and rebalancing are also mandatory if the number of
components in the index is greater than five at the time of
rebalancing, and that the Exchange reserves the right to rebalance
quarterly at its discretion.\11\ Proposed Rule 1802(f)(2)(ii) defines a
modified equal-dollar weighted index as an index in which each
underlying component represents a pre-determined weighting percentage
of the entire index.\12\ A modified equal-dollar weighted index will be
balanced quarterly.\13\ Proposed Rule 1802(f)(2)(iii) proposes that a
share-weighted index is calculated by multiplying the price of the
component security by an adjustment factor.\14\ The proposed rule
states that the value of the index is calculated by adding the weight
of each component security and dividing the total by an index divisor,
calculated to yield a benchmark index level as of a particular
date.\15\ The proposed rule further provides that a share-weighted
index is not adjusted to reflect changes in the number of outstanding
shares of its components and that a share-weighted micro narrow-based
index will not be re-balanced.\16\ If a share-weighted micro narrow-
based index fails to meet the maintenance listing standards set forth
in proposed Rule 1802(g), the Exchange will restrict trading in
existing option series to closing transactions and will not issue
additional series for that index.\17\ Proposed Rule 1802(f)(2)(iv)
permits the Exchange to rebalance any micro narrow-based index on an
interim basis if warranted as a result of
[[Page 39022]]
extraordinary changes in the relative values of the component
securities.\18\
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\9\ Id.
\10\ Id. For purposes of this provision, the ``notional value''
would mean the market price of the component times the number of
shares of the underlying component in the index. Id.
\11\ Id.
\12\ Id. The Exchange explains that each component is assigned a
weight that takes into account the relative market capitalization of
the securities comprising the index. Id.
\13\ Id.
\14\ Id. Adjustment factors are chosen to reflect the investment
objective deemed appropriate by the designer of the index and will
be published by the Exchange as part of the contract specifications.
Id.
\15\ Id.
\16\ Id.
\17\ Id.
\18\ Id. The proposed rule further states that to the extent
investors with open positions must rely upon the continuity of the
options contract on the index, outstanding contracts are unaffected
by rebalancings. Id.
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Proposed Rule 1802(f)(3) requires that each component security in
the index has a minimum market capitalization of at least $75 million,
except that each of the lowest weighted securities in the index that in
the aggregate account for no more than 10% of the weight of the index
may have a minimum market capitalization of only $50 million.\19\
Proposed Rule 1802(f)(4) requires that the average daily trading volume
in each of the preceding six months for each component security in the
index is at least 45,500 shares, except that each of the lowest
weighted component securities in the index that in the aggregate
account for no more than 10% of the weight of the index may have an
average daily trading volume of only 22,750 shares for each of the last
six months.\20\ Proposed Rule 1802(f)(5) requires that in a
capitalization-weighted index, the lesser of: (i) the five highest
weighted component securities in the index each have had an average
daily trading volume of at least 90,000 shares over the past six
months; or (ii) the highest weighted component securities in the index
that in the aggregate represent at least 30% of the total number of
component securities in the index each have had an average daily
trading volume of at least 90,000 shares over the past six months.\21\
Proposed Rule 1802(f)(6) requires that subject to proposed Rules
1802(f)(4) and (5), the component securities that account for at least
90% of the total index weight and at least 80% of the total number of
component securities in the index must meet the requirements of MIAX
Rule 402, which sets forth generally the criteria applicable to
individual underlying securities.\22\
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\19\ Id.
\20\ Id.
\21\ Id.
\22\ Id.
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Proposed Rule 1802(f)(7)(i) requires that each component security
in the index is an ``NMS Security'' as defined in Rule 600 of
Regulation NMS under the Exchange Act; and proposed Rule 1802(f)(7)(ii)
requires that foreign securities or ADRs that are not subject to
comprehensive surveillance sharing agreements do not represent more
than 20% of the weight of the index.\23\ Proposed Rule 1802(f)(8)
requires the current underlying index value to be reported at least
once every 15 seconds during the time the index options are traded on
the Exchange.\24\ Proposed Rule 1802(f)(9) requires an equal dollar-
weighted index to be rebalanced at least once every quarter.\25\
Proposed Rule 1802(f)(10) requires the underlying index, if it is
maintained by a broker-dealer, to be calculated by a third party who is
not a broker-dealer, and requires the broker-dealer to have in place an
information barrier around its personnel who have access to information
concerning changes in and adjustments to the index.\26\ Proposed Rule
1802(f)(11) requires that each component security in the index is
registered pursuant to Section 12 of the Exchange Act; and proposed
Rule 1802(f)(12) requires that cash settled index options are
designated as A.M.-settled options.\27\
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\23\ Id.
\24\ Id. at 30179.
\25\ Id.
\26\ Id.
\27\ Id.
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The Exchange also proposes to amend Rule 1802(a) to permit the
Exchange, if the initial listing standards set forth above are
satisfied, to list and trade micro narrow-based indexes without filing
a proposed rule change pursuant to Section 19(b) to be approved by the
Commission.\28\
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\28\ Id. at 30179. Rule 1802(a) currently permits the trading of
narrow-based indexes and broad-based indexes that meet the initial
listing criteria set forth in Rule 1802(b) and (d), respectively,
without filing a proposed rule change to be approved by the
Commission under Section 19(b) of the Act. Id.
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C. Proposed Maintenance Listing Criteria
The Exchange further proposes maintenance listing standards that
would apply to each class of options on micro narrow-based indexes that
met the initial listing criteria. An index must satisfy the criteria
set forth in proposed Rule 1802(g) to remain listed on the
Exchange.\29\ Specifically, proposed Rule 1802(g)(1) requires the index
to meet the initial listing standards in proposed Rule 1802(f)(1).\30\
Proposed Rule 1802(g)(2) states that subject to proposed Rules
1802(g)(9) and (10), discussed below, the component securities that
account for at least 90% of the total index weight and at least 80% of
the total number of component securities in the index must meet the
requirements of MIAX Rule 402.\31\ Proposed Rule 1802(g)(3) provides
that each component security in the index has a market capitalization
of at least $75 million, except that each of the lowest weighted
component securities that in the aggregate account for no more than 10%
of the weight of the index may have a market capitalization of only $50
million.\32\ Proposed Rule 1802(g)(4) requires each component security
in the index to be an ``NMS Security'' as defined in Rule 600 of
Regulation NMS under the Exchange Act.\33\ Proposed Rule 1802(g)(5)
requires that foreign securities or ADRs not subject to comprehensive
surveillance sharing agreements cannot represent more than 20% of the
weight of the index.\34\ Proposed Rule 1802(g)(6) requires the current
underlying index value to be reported at least once every 15 seconds
during the time the index options are traded on the Exchange.\35\
Proposed Rule 1802(g)(7) requires that if the underlying index is
maintained by a broker-dealer, the index is calculated by a third party
who is not a broker-dealer, and the broker-dealer has in place an
information barrier around its personnel who have access to information
concerning changes in and adjustments to the index.\36\ Proposed Rule
1802(g)(8) states that the total number of component securities in the
index may not increase or decrease by more than 33 \1/3\% from the
number of component securities in the index at the time of its initial
listing.\37\ Proposed Rule 1802(g)(9) requires that trading volume of
each component security in the index must be at least 500,000 shares
for each of the last six months, except that for each of the lowest
weighted component securities in the index that in the aggregate
account for no more than 10% of the weight of the index, trading volume
must be at least 400,000 shares for each of the last six months.\38\
Proposed Rule 1802(g)(10) requires that in a capitalization-weighted
index and a modified capitalization weighted index, the lesser of the
five highest weighted component securities in the index or the highest
weighted component securities in the index that in the aggregate
represent at least 30% of the total number of stocks in the index each
have had an average monthly trading volume of at least 1,000,000 shares
over the past six months.\39\ Proposed Rule 1802(g)(11)
[[Page 39023]]
requires each component security in the index to be registered pursuant
to Section 12 of the Exchange Act. Proposed Rule 1802(g)(12) requires
that in an approximate equal-dollar weighted index, the index must be
reconstituted and rebalanced if the notional value of the largest
component is at least twice the notional volume of the smallest
component for 50% or more of the trading days in the three months prior
to December 31 of each year.\40\ The proposed rule would provide that
reconstitution and rebalancing are also mandatory if the number of
components in the index is greater than five at the time of rebalancing
and that the Exchange reserves the right to rebalance quarterly at its
discretion.\41\ Proposed Rule 1802(g)(13) requires that in a modified
equal-dollar weighted index the Exchange will re-balance the index
quarterly.\42\ Proposed Rule 1802(g)(14) states that in a share-
weighted index, if a share-weighted micro narrow-based index fails to
meet the maintenance listing standards under proposed Rule 1802(g), the
Exchange will not re-balance the index, will restrict trading in
existing option series to closing transactions, and will not issue
additional series for that index.\43\ Finally, proposed Rule
1802(g)(15) states that in the event a class of index options listed on
the Exchange fails to satisfy the maintenance listing standards, the
Exchange will not open for trading any additional series of options of
that class unless such failure is determined by the Exchange not to be
significant and the Commission concurs in that determination, or unless
the continued listing of that class of index options has been approved
by the Commission under Section 19(b)(2) of the Exchange Act.\44\
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\29\ Id. at 30179-80. The Exchange states that its proposed
maintenance listing standards are substantially similar to the
maintenance standards set forth in the Cboe and MEMX rules. Id. at
30180 n.7. See also Cboe Rule 4.10(e) and MEMX Rule 29.6(e).
\30\ Id. at 30179. See supra section II.B for a description of
proposed Rule 1802(f)(1).
\31\ Id.
\32\ Id.
\33\ Id.
\34\ Id.
\35\ Id.
\36\ Id.
\37\ Id.
\38\ Id.
\39\ Id.
\40\ Id. Proposed Rule 1802(g)(12) defines, for purposes of this
provision, ``notional value'' as the market price of the component
times the number of shares of the underlying component in the index.
Id.
\41\ Id.
\42\ Id.
\43\ Id.
\44\ Id.
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D. Proposed Position and Exercise Limits
The Exchange proposes to adopt Rule 1805B concerning position
limits for micro narrow-based index options. Specifically, proposed
Rule 1805B(a) would require Members \45\ to comply with applicable Cboe
rules with respect to position limits for micro narrow-based index
options traded on both the Exchange and Cboe, or with the applicable
Exchange rules for industry index options traded on the Exchange but
not on Cboe.\46\ Proposed Rule 1805B(b) would require that index option
contracts not be aggregated with options contracts on any stocks whose
prices are the basis for the calculation of the index.\47\ Proposed
Rule 1805B(c) would require positions in reduced-value index options to
be aggregated with positions in full-value index options. For such
purposes, ten (10) reduced-value options would equal one (1) full-value
contract.\48\
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\45\ Id. at 30180. The term ``Member'' means an individual or
organization approved to exercise the trading rights associated with
a Trading Permit. Members are deemed ``members'' under the Exchange
Act. See id. at 30180 n.8 (citing the definition of ``Member'' in
Exchange Rule 100).
\46\ Id. The Exchange proposes to incorporate by reference Cboe
rules relating to position limits. See infra Section IV.
\47\ See Notice, supra note 3, at 30180.
\48\ Id. The Exchange cites as MEMX Rule 29.7 as setting forth
substantially similar requirements. Id. at n.10. See also Nasdaq
Stock Market LLC Options 4A, Section 7. Id.
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The Exchange also proposes to amend Rule 1807(a) to provide that
exercise limits for micro narrow-based index options shall be
equivalent to the position limits for micro narrow-based index options
with the nearest expiration date in proposed Rule 1805B.\49\ The
Exchange states that this approach is consistent with the Exchange's
approach for determining exercise limits for broad-based index options,
industry index options, and foreign currency index options.\50\ The
Exchange further states that this approach would impose limits on the
aggregate number of options contracts a Member could exercise, which
would minimize the potential for mini-manipulations and corners or
squeezes of the underlying market.\51\
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\49\ See Notice, supra note 3, at 30180.
\50\ Id. at 30180-81. The Exchange also cites MEMX Rule 29.9(a)
and Cboe BZX Exchange, Inc. Rule 29.9 as setting forth similar
requirements. Id. at 30181 n.15.
\51\ See id. at 30181.
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The Exchange represents that it has in place adequate surveillance
procedures to monitor trading in micro narrow-based index options to
ensure the maintenance of fair and orderly markets and that it will
apply these program procedures to trading in micro narrow-based index
options.\52\ The surveillance program includes real-time patterns for
price and volume movements and post-trade surveillance patterns (e.g.,
spoofing, marking the close, pinging, and phishing).\53\ The Exchange
represents that it will review activity in the underlying components of
the micro narrow-based indexes when conducting surveillances for market
abuse or manipulation in options on micro narrow-based indexes.\54\ The
Exchange additionally states that it is a member of the Intermarket
Surveillance Group (``ISG'') under the Intermarket Surveillance Group
Agreement, through which ISG members coordinate surveillance and
investigative information sharing in the stock, options, and futures
markets.\55\ Thus, in addition to obtaining surveillance data from the
Exchange's affiliates, MIAX PEARL, LLC (``MIAX Pearl''), MIAX Emerald,
LLC (``MIAX Emerald''), and MIAX Sapphire, LLC (``MIAX Sapphire''), the
Exchange states it will be able to obtain information from Cboe, NYSE
American LLC (``NYSE American''), and other markets through ISG.\56\
The Exchange states that it also has a Regulatory Services Agreement
with Financial Industry Regulatory Authority (``FINRA'') and that
pursuant to a multi-party 17d-2 joint plan, all options exchanges
allocate regulatory responsibilities to FINRA to conduct certain
options-related market surveillance that are common to rules of all
options exchanges.\57\
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\52\ Id.
\53\ Id.
\54\ Id.
\55\ Id.
\56\ Id.
\57\ Id.
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III. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
changes are consistent with the requirements of the Act and the rules
and regulations thereunder applicable to a national securities
exchange.\58\ Specifically, the Commission finds that the proposed rule
change is consistent with Section 6(b)(1) of the Act,\59\ which
requires, among other things, that the Exchange to be so organized and
have the capacity to be able to carry out the purposes of the Act and
to enforce compliance by its members and persons associated with its
members with the provisions of the Act, Commission rules and
regulations thereunder, and its own rules. The Commission also finds
that the proposed rule change is consistent with Section 6(b)(5) of the
Act,\60\ which requires that the rules of a national securities
exchange be designed, among other things, to prevent fraudulent and
manipulative acts and practices, to promote just and equitable
principles of trade, to remove impediments to and
[[Page 39024]]
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 not be designed to permit unfair discrimination between customers,
issuers, brokers or dealers. The proposed rule change would permit the
Exchange to list and trade, pursuant to Rule 19b-4(e) under the Act,
options on micro narrow-based security indexes that meet the listing
criteria in the proposed rules.
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\58\ In approving this proposed rule change the Commission notes
that it has considered the proposed rule's impact on efficiency,
competition, and capital formation. See 15 U.S.C. 78c(f).
\59\ 15 U.S.C. 78f(b)(1).
\60\ 15 U.S.C. 78f(b)(5).
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Permitting the listing and trading of micro narrow-based index
options on the Exchange provides investors with an additional vehicle
through which they can gain and hedge exposure to micro narrow-based
indexes. The availability of these products may encourage market makers
to trade options on micro narrow-based indexes, potentially resulting
in greater liquidity and more competitive quoting on the Exchange. In
addition, the proposal will permit the Exchange to compete for order
flow with Exchanges that already have rules in place to list and trade
options on these indexes. Moreover, the Commission believes that the
listing and trading of micro narrow-based index options does not raise
unique regulatory concerns. Trading of options on such products is not
novel and the proposed initial and continuing listing requirements, as
well as the proposed rules regarding position and exercise limits for
micro narrow-based index options, are consistent with the requirements
currently in effect on Cboe and MEMX.\61\
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\61\ See Notice, supra note 3, at 30180 n. 4, 6, 7, 10, and 15.
As a result of adding paragraph (m) to Rule 1801, which defines
micro narrow-based index options, the Exchange proposes to renumber
current subparagraphs (m)-(t) or Rule 1801 to subparagraphs (n)-(u).
The Exchange also proposes to amend Rule 1802(a) to allow trading on
the Exchange of options on micro narrow-based indexes without filing
a proposed rule change with the Commission pursuant to Section 19(b)
of the Act. The Commission believes that these proposed changes will
add clarity to the Exchange's definitions and rule filing
requirements applicable to index options.
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Further, as noted above, the Exchange represents that it has an
adequate surveillance program in place for micro narrow-based options
that includes monitoring real-time patterns for price and volume
movements as well as post-trade surveillance patterns. The Exchange
also represents that it will review activity in the component
securities of the micro narrow-based indexes when conducting
surveillance for market abuse or manipulation of options on micro
narrow-based indexes. In addition, the Exchange represents that as a
member of ISG the Exchange will be able to obtain surveillance data
from other markets, as well as from its affiliate exchanges.
In light of the foregoing, the Commission believes that the
proposal is consistent with Sections 6(b)(1) and 6(b)(5) of the
Act.\62\
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\62\ 15 U.S.C. 78f(b)(1); 15 U.S.C. 78f(b)(5).
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IV. Exemption From Section 19(b) of the Act With Regard to Cboe Rules
Incorporated by Reference
The Exchange proposes to incorporate by reference as MIAX rules
certain rules of Cboe. Specifically, MIAX Rule 1805B proposes to
incorporate by reference the applicable rules of Cboe with respect to
position limits for micro-narrow based index options traded on MIAX and
also on Cboe.\63\ Thus, for certain MIAX rules, Exchange members will
comply with a MIAX rule by complying with the Cboe rule referenced. In
connection with its proposal to incorporate Cboe rules by reference,
the Exchange requests, pursuant to Rule 240.0-12 under the Act,\64\ an
exemption under Section 36 of the Act \65\ from the rule filing
requirements of Section 19(b) of the Act for changes to those Exchange
rules that are effected solely by virtue of a change to a Cboe rule
with respect to position limits on micro narrow-based index
options.\66\ The Exchange proposes to incorporate by reference
categories of rules (rather than individual rules within a category)
that are not trading rules. The Exchange agrees to provide written
notice to Members of the specific Cboe rules that it is incorporating
by reference.\67\ In addition, the Exchange represents that it will
notify Members whenever Cboe proposes a change to a cross-referenced
Cboe rule concerning position limits on micro narrow-based index
options.\68\
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\63\ See Notice, supra note 3, at 30180.
\64\ 17 CFR 240.0-12.
\65\ 15 U.S.C. 78mm.
\66\ See Notice, supra note 3, at 30180.
\67\ Id.
\68\ The Exchange represents that it will provide such notice
through a regulatory circular posted on the Exchange's website. See
id. at 30180 n.13.
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The Commission previously has exempted, pursuant to its authority
under Section 36 of the Act, SROs from the requirement to file proposed
rule changes under Section 19(b) of the Act in circumstances similar to
those presented here.\69\ Each such exempted SRO is governed by the
incorporated rules, as amended from time to time, but is not required
to file a separate proposed rule change with the Commission each time
the SRO whose rules are incorporated by reference seeks to modify its
rules. In addition, each exempted SRO incorporated by reference only
regulatory rules (e.g., margin, suitability, arbitration), not trading
rules, and incorporated by reference whole categories of rules (i.e.,
did not ``cherry-pick'' certain individual rules within a category).
Each exempted SRO had procedures in place to provide written notice to
its members each time a change is proposed to the incorporated rules of
another SRO in order to provide its members with notice of a proposed
rule change that affects their interests, so that they would have an
opportunity to comment.
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\69\ See, e.g., Securities Exchange Act Release No. 49260
(February 17, 2004), 69 FR 8500 (February 24, 2004) (granting
application for exemptions pursuant to Section 36(a) under the Act
by the American Stock Exchange LLC, the International Securities
Exchange, Inc., the Municipal Securities Rulemaking Board, the
Pacific Exchange, Inc., the Philadelphia Stock Exchange, Inc., and
the Boston Stock Exchange, Inc.). See also, e.g., Securities
Exchange Act Release Nos. 75760 (August 7, 2015) 80 FR 48600 (August
13, 2015) (SR-EDGX-2015-18) (approving the operations of EDGX
Options Exchange, which included exemptive relief pursuant to
Section 36(a) under the Act); 57478 (March 12, 2008), 73 FR 14521
(March 18, 2008) (order approving SR-NASDAQ-2007-004 and SR-NASDAQ-
2007-080, which included exemptive relief pursuant to Section 36(a)
under the Act) and 53128 (January 13, 2006); 95445 (August 8, 2022),
87 FR 49894 (August 12, 2022) (SR-MEMX-2022-10) (approving MEMX to
adopt rules to govern the trading of options on the Exchange for a
new facility called MEMX Options).
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The Commission is granting the Exchange's request for an exemption,
pursuant to Section 36 of the Act, from the rule filing requirements of
Section 19(b) of the Act with respect to the Cboe rules that the
Exchange proposes to incorporate by reference into its rules. The
Commission believes that this exemption is appropriate in the public
interest and consistent with the protection of investors because it
will promote more efficient use of Commission and SRO resources by
avoiding duplicative rule filings based on simultaneous changes to
identical rule text sought by more than one SRO. Consequently, the
Commission grants the Exchange's exemption request. This exemption is
conditioned upon the Exchange providing written notice to its Members
whenever Cboe proposes to change a rule that the Exchange has
incorporated by reference.
IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\70\ that the proposed rule change (SR-MIAX-2025-27) be, and hereby
is approved.
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\70\ See id.
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It is further ordered, pursuant to Section 36 of the Act,\71\ that
the Exchange shall be exempted from the rule filing requirements of
Section 19(b)
[[Page 39025]]
of the Act \72\ with respect to the Cboe rules that the Exchange
proposes to incorporate by reference in MIAX Rule 1805B, subject to the
conditions specified in this Order.
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\71\ 15 U.S.C. 78mm.
\72\ 15 U.S.C. 78s(b).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\73\
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\73\ 17 CFR 200.30-3(a)(12) and 17 CFR 200.30(a)(76).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2025-15322 Filed 8-12-25; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on August 13, 2025.
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