Notice2025-23656
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing of a Proposed Rule Change To Amend Exchange Rule 516, Order Types, To Remove the Definition of a Route to Floor Order
Primary source
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Published
December 23, 2025
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 90 Issue 244 (Tuesday, December 23, 2025)</title>
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[Federal Register Volume 90, Number 244 (Tuesday, December 23, 2025)]
[Notices]
[Pages 60160-60162]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-23656]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104457; File No. SR-SAPPHIRE-2025-40]
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of
Filing of a Proposed Rule Change To Amend Exchange Rule 516, Order
Types, To Remove the Definition of a Route to Floor Order
December 18, 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 December 5, 2025, MIAX Sapphire, LLC (``MIAX Sapphire'' 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 Exchange Rule 516 to remove the
definition of Route to Floor Order.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings">https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings</a>, and at the Exchange's principal office.
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
[[Page 60161]]
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
On July 15, 2024, the U.S. Securities and Exchange Commission (the
``Commission'') approved the Exchange's Form 1 application to register
as a national securities exchange under Section 6 of the Exchange
Act.\3\ At that time, the Exchange adopted its Rulebook which
established rules for both the electronic market and the physical
Trading Floor,\4\ even though the physical Trading Floor \5\ was slated
to launch several months following the launch of the electronic
market.\6\ Included in the Rulebook was Rule 516, Order Types, which
established a ``Route to Floor Order'' order type, among other order
types. At the time the Exchange adopted Rule 516 (July 15, 2024), the
Exchange believed that such an order type might be desired by Members
once the Trading Floor actually launched. However, to date, there has
been no such Member interest to implement and support such order type.
Accordingly, since this order type was never built in the Exchange's
System \7\ or implemented on the Exchange, and since the Exchange does
not propose to build and implement this order type in the future, the
Exchange proposes to remove this order type from the Exchange's
Rulebook. To the extent that the Exchange changes its opinion and
desires to implement such an order type in the future, the Exchange
will file a separate rule change with the Commission under Rule 19b-4.
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\3\ See Securities Exchange Act Release No. 100539 (July 15,
2024), 89 FR 58848 (July 19, 2024) (File No. 10-240) (order
approving application of MIAX Sapphire, LLC for registration as a
national securities exchange). (Exhibit B) (establishing rules for
the physical Trading Floor).
\4\ The term ``Trading Floor'' or ``Floor'' means the physical
trading floor of the Exchange located in Miami, Florida. The Trading
Floor shall consist of one ``Crowd Area'' or ``Pit'' where Floor
Participants will be located and option contracts will be traded.
The Crowd Area or Pit shall be marked with specific visible
boundaries on the Trading Floor, as determined by the Exchange. A
Floor Broker must represent all orders in an ``open outcry'' fashion
in the Crowd Area. See Exchange Rule 100.
\5\ Physical trading began on the MIAX Sapphire Trading Floor on
September 12, 2025. See MIAX Press Release, Miami International
Holdings Launches Next-Generation Options Trading Floor in Miami,
available online at <a href="https://www.miaxglobal.com/sites/default/files/press_release-files/MIAX_Press_Release_09162025.pdf">https://www.miaxglobal.com/sites/default/files/press_release-files/MIAX_Press_Release_09162025.pdf</a>.
\6\ Electronic trading began on MIAX Sapphire on August 12,
2024. See MIAX Press Release, Miami International Holdings Announces
Successful Launch of MIAX Sapphire Options Exchange, available
online at <a href="https://www.miaxglobal.com/sites/default/files/press_release-files/MIAX_Press_Release_08132024.pdf">https://www.miaxglobal.com/sites/default/files/press_release-files/MIAX_Press_Release_08132024.pdf</a>.
\7\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
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Proposal To Remove the Definition of Route to Floor Order
The Exchange proposes to amend Exchange Rule 516 to remove the
definition of Route to Floor Order. Currently, Exchange Rule 516(k)
provides that, ``[a] Route to Floor order is an order that is routed to
a designated Floor Broker \8\ on the Exchange's Trading Floor. An order
routed to the Trading Floor is handled in accordance with Rule 2040.''
The Exchange notes that Route to Floor orders have never been
implemented and are not currently in use. Additionally, the Exchange
has no plans to implement this order type and now proposes to remove
paragraph (k) of Rule 516 in its entirety. The purpose of the proposed
change is to remove an unused order type from the Exchange's Rulebook
to provide greater clarity to Members \9\ and the public regarding the
Exchange's offerings and functionality.
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\8\ A Floor Broker is an individual who is registered with the
Exchange for the purpose, while on the Trading Floor, of accepting
and handling options orders. A floor Broker must be registered as a
Floor Participant prior to registering as a Floor Broker. A Floor
Broker may take into his own account, and subsequently liquidate,
any position that results from an error made while attempting to
execute, as Floor Broker, an order. See Exchange Rule 2015.
\9\ 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
Exchange Rule 100.
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2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\10\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\11\ in particular, in that it
is 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.
Specifically, the Exchange believes that the proposed rule change will
provide greater clarity to Members and the public regarding the
Exchange's Rulebook by removing the description of an order type that
was not implemented for use on the Exchange, thereby providing accuracy
and consistency within the Exchange's Rulebook.
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\10\ 15 U.S.C. 78f(b).
\11\ 15 U.S.C. 78f(b)(5).
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The Exchange believes that the proposed rule change also furthers
the objectives of Section 6(b)(5) of the Act.\12\ In particular, that
it is designed to prevent fraudulent and manipulative acts and
practices, promote just and equitable principles of trade, foster
cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, remove impediments to and
perfect the mechanisms of a free and open market and a national market
system and, in general, protect investors and the public interest. The
Exchange believes the proposed change promotes just and equitable
principles of trade and remove impediments to and perfect the mechanism
of a free and open market and a national market system because the
proposed rule change will provide greater clarity to Members and the
public regarding the Exchange's Rulebook by removing the description of
an order type which was not implemented for use on the Exchange,
thereby removing any inconsistency between the Exchange's Rulebook and
its System. It is in the public interest for the Exchange's Rulebook to
be accurate and concise so as to eliminate the potential for confusion.
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\12\ 15 U.S.C. 78f(b)(5).
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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 that 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 as the order type
was never implemented for use on the Exchange, therefore removal of the
description of the order type from the Rulebook is benign. The proposed
rule change is not
[[Page 60162]]
intended to address any competitive issue but rather is concerned
solely with ensuring the Exchange's Rulebook accurately reflects
functionality currently in place on the Exchange.
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 any competitive issue but rather is concerned
solely with updating the Exchange's Rulebook to provide accuracy and
consistency regarding functionality offered by the Exchange and
eliminate the potential for confusion.
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
The Exchange has filed the proposed rule change pursuant to Section
19(b)(3)(A) of the Act \13\ and Rule 19b-4(f)(6) \14\ thereunder.
Because the proposed rule change does not: (i) significantly affect the
protection of investors or the public interest; (ii) impose any
significant burden on competition; and (iii) become operative prior to
30 days from the date on which it was filed, or such shorter time as
the Commission may designate, if consistent with the protection of
investors and the public interest, the proposed rule change has become
effective pursuant to Section 19(b)(3)(A) of the Act \15\ and Rule 19b-
4(f)(6) \16\ thereunder.
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\13\ 15 U.S.C. 78s(b)(3)(A).
\14\ 17 CFR 240.19b-4(f)(6).
\15\ 15 U.S.C. 78s(b)(3)(A).
\16\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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A proposed rule change filed under Rule 19b-4(f)(6) \17\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b4(f)(6)(iii),\18\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay so that the proposal
may become operative immediately upon filing. The Commission believes
that waiving the 30-day operative delay is consistent with the
protection of investors and the public interest, because it will allow
the Exchange to immediately remove the description of an order type
that was never implemented for use on the Exchange from the Exchange's
Rulebook, which will provide greater accuracy, clarity and consistency
to Members and the public regarding the Exchange's Rulebook.
Accordingly, the Commission designates the proposed rule change to be
operative upon filing.\19\
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\17\ 17 CFR 240.19b-4(f)(6).
\18\ 17 CFR 240.19b-4(f)(6)(iii).
\19\ For purposes only of waiving the 30-day operative delay,
the Commission also has 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 this 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="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#2153544d440c424e4c4c444f5552615244420f464e57"><span class="__cf_email__" data-cfemail="f486819891d9979b9999919a8087b4879197da939b82">[email protected]</span></a>. Please include
file number SR-SAPPHIRE-2025-40 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-SAPPHIRE-2025-40. 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 also 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-SAPPHIRE-2025-40 and should be submitted
on or before January 13, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
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\20\ 17 CFR 200.30-3(a)(12) and (59).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2025-23656 Filed 12-22-25; 8:45 am]
BILLING CODE 8011-01-P
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