Notice2026-03237
Self-Regulatory Organizations; MEMX LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Rule 18.7, Position Limits, and Rule 18.9, Exercise Limits, Regarding Position and Exercise Limits on Options Overlying Certain Crypto Assets
Primary source
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Published
February 19, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 33 (Thursday, February 19, 2026)</title>
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[Federal Register Volume 91, Number 33 (Thursday, February 19, 2026)]
[Notices]
[Pages 8031-8033]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03237]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104840; File No. SR-MEMX-2026-04]
Self-Regulatory Organizations; MEMX LLC; Notice of Filing and
Immediate Effectiveness of a Proposed Rule Change To Amend Rule 18.7,
Position Limits, and Rule 18.9, Exercise Limits, Regarding Position and
Exercise Limits on Options Overlying Certain Crypto Assets
February 13, 2026.
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 January 30, 2026, MEMX LLC (``MEMX'' or ``Exchange'') filed with the
Securities and Exchange Commission (``Commission'') the proposed rule
change as described in Items I and II below, which Items have been
prepared by the Exchange. The Exchange filed the proposal as a ``non-
controversial''
[[Page 8032]]
proposed rule change pursuant to Section 19(b)(3)(A)(iii) of the Act
\3\ and Rule 19b-4(f)(6) thereunder.\4\ The Commission is publishing
this notice to solicit comments on the proposed rule change from
interested persons.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ 15 U.S.C. 78s(b)(3)(A).
\4\ 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 is filing with the Commission a proposed rule change
to amend Rule 18.7, Position Limits, and Rule 18.9, Exercise Limits,
regarding the position and exercise limits for options on the Fidelity
Wise Origin Bitcoin Fund, ARK 21Shares Bitcoin ETF, iShares Ethereum
Trust ETF, Fidelity Ethereum Fund, Grayscale Ethereum Trust ETF,
Grayscale Ethereum Mini Trust ETF and Bitwise Ethereum ETF. The text of
the proposed rule change is provided in Exhibit 5 and is available on
the Exchange's website at <a href="https://info.memxtrading.com/regulation/rules-and-filings/">https://info.memxtrading.com/regulation/rules-and-filings/</a>.
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 Rules 18.7 (Position Limits) and
18.9 (Exercise Limits) \5\ regarding the position and exercise limits
for options on the following Exchange Traded Fund Shares: Fidelity Wise
Origin Bitcoin Fund, ARK 21Shares Bitcoin ETF, iShares Ethereum Trust
ETF, Fidelity Ethereum Fund, Grayscale Ethereum Trust ETF, Grayscale
Ethereum Mini Trust ETF and Bitwise Ethereum ETF (collectively, ``the
Crypto Assets''). This is a competitive filing based on a similar
proposal submitted by Nasdaq ISE, LLC (``ISE'').\6\
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\5\ The Exchange notes that all the rules of Chapter 18 of MEMX,
including Rule 18.7 and 18.9, are incorporated by reference into the
rulebook of MX2, LLC.
\6\ See Securities Exchange Act Release No. 104648 (January 21,
2026) 91 FR 3282 (January 26, 2026) (SR-ISE-2026-01) (Self-
Regulatory Organizations; Nasdaq ISE, LLC; Notice of Filing and
Immediate Effectiveness of Proposed Rule Change to Remove
Restrictions on Certain Crypto Assets) (``ISE Filing'').
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Background
In December 2024, the Exchange filed a proposal which was noticed
for immediate effectiveness by the Commission to list and trade options
on the Fidelity Wise Origin Bitcoin Fund and the ARK 21Shares Bitcoin
ETF.\7\ In May 2025, the Exchange filed a proposal which was noticed
for immediate effectiveness by the Commission to list and trade options
on the iShares Ethereum Trust.\8\ In June 2025, the Exchange filed a
proposal which was noticed for immediate effectiveness by the
Commission to list and trade options on the Fidelity Ethereum Fund, the
Grayscale Ethereum Trust ETF, the Grayscale Ethereum Mini Trust ETF,
and the Bitwise Ethereum ETF.\9\ Those aforementioned notices permitted
the Exchange to trade the Crypto Assets subject to a 25,000 contract
position and exercise limit.
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\7\ See Securities Exchange Act Release No. 101975 (December 19,
2024) 89 FR 105118 (December 26, 2024) (SR-MEMX-2024-46).
\8\ See Securities Exchange Act Release No. 103019 (May 9, 2025)
90 FR 20707 (May 15, 2025) (SR-MEMX-2025-11).
\9\ See Securities Exchange Act Release No 103223 (June 11,
2025) 90 FR 25710 (June 17, 2025) (SR-MEMX-2025-15).
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In August 2025, the Exchange filed a proposal which was noticed for
immediate effectiveness by the Commission to amend the position and
exercise limits for options on the iShares Bitcoin Trust ETF, Grayscale
Bitcoin Trust ETF, Grayscale Bitcoin Mini Trust ETF, and the Bitwise
Bitcoin ETF to eliminate the 25,000 contract position and exercise
limits.\10\ Lastly, in January 2026, the Exchange filed a proposal
which was noticed for immediate effectiveness by the Commission to
permit options on Exchange-Traded Fund Shares that meet certain generic
requirements to be listed as a Commodity-Based Trust.\11\ As amended,
section (5) of Rule 19.3(i) specifies that the Exchange may list and
trade options on a Commodity-Based Trust that meets the generic listing
standards for Commodity-Based Trust Shares of the applicable primary
listing market, except that the Commodity-Based Trust holds a single
crypto asset. Further, a Commodity-Based Trust that meets the
requirements of Exchange Rule 19.3(i) must also satisfy the following
requirements: (i) the total global supply of the underlying crypto
asset held by the Commodity-Based Trust has an average daily market
value of at least $700 million over the last 12 months; and (ii) the
crypto asset held by the Commodity-Based Trust underlies a derivatives
contract that trades on a market with which the Exchange has a
comprehensive surveillance sharing agreement, whether directly or
through common membership in the Intermarket Surveillance Group.
Position and exercise limits for options on Commodity-Based Trusts that
list and trade pursuant to Exchange Rule 19.3(i) would be determined
pursuant to Exchange Rules 18.7 and 18.9, respectively, as is the case
for other options on other ETFs.
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\10\ See Securities Exchange Act Release No. 103752 (August 20,
2025) 90 FR 41436 (August 25, 2025) (SR-MEMX-2025-26).
\11\ See Securities Exchange Act Release No. 104592 (January 13,
2026) 91 FR 2244 (January 16, 2026) (SR-MEMX-2026-01).
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Proposal
The Crypto Assets all qualify for listing pursuant to section (5)
of Exchange Rule 19.3(i). As such, similar to other options listed
pursuant to Exchange Rule 19.3(i), the Crypto Assets should be subject
to the position limits set forth in Exchange Rule 18.7, and subject to
the exercise limits set forth in Exchange Rule 18.9. To that end, the
Exchange proposes to remove the 25,000 position and exercise limit
restrictions for the Crypto Assets. With this proposal, Crypto Assets
that qualify to be listed pursuant to Exchange [sic] 19.3(i) would be
treated similar to all other options for purposes of position and
exercise limits.
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.\12\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \13\ 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
[[Page 8033]]
investors and the public interest. Additionally, the Exchange believes
the proposed rule change is consistent with the Section 6(b)(5) \14\
requirement that the rules of an exchange not be designed to permit
unfair discrimination between customers, issuers, brokers, or dealers.
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\12\ 15 U.S.C. 78f(b).
\13\ 15 U.S.C. 78f(b)(5).
\14\ Id.
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The Exchange's proposal to permit the Crypto Assets, which qualify
for listing pursuant to Exchange Rule 19.3(i), to be subject to the
position limits set forth in Exchange Rule 18.7 and subject to the
exercise limits set forth in Exchange Rule 18.9 similar to all other
options is consistent with the Act as this treatment promotes just and
equitable principles of trade.
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. In this regard and as
indicated above, the Exchange notes that the rule change being proposed
is very similar in nature to the ISE Filing.\15\
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\15\ See supra note 6.
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The Exchange's proposal does not burden intra-market competition
because the Crypto Assets that qualify to be listed pursuant to
Exchange Rule 19.3(i) would be treated similar to all other options for
purposes of position and exercise limits. The Exchange does not believe
that the proposed rule change will impose any burden on inter-market
competition as the proposal is not competitive in nature. The Exchange
expects that all option exchanges will adopt substantively similar
proposals, such that the Exchange's proposal would benefit competition.
For these reasons, the Exchange does not believe that the proposed rule
change will impose any burden on competition not necessary or
appropriate in furtherance of the purposes of the Act.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
The Exchange neither solicited nor received comments on the
proposed rule change.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, 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)(iii) of the
Act \16\ and Rule 19b-4(f)(6) thereunder.\17\
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\16\ 15 U.S.C. 78s(b)(3)(A)(iii).
\17\ 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) \18\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\19\ 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. Waiver of the operative
delay will allow the Exchange to treat options on Crypto Assets in the
same manner as all other options that qualify for listing pursuant to
Exchange Rule 19.3(i)(5), and options on Crypto Assets that qualify for
listing pursuant to Exchange Rule 19.3(i)(5) are subject to the
position and exercise limits set forth in Exchange Rules 18.7 and 18.9,
respectively. Finally, the Exchange notes that another exchange filed a
notice for immediate effectiveness, substantively similar in relevant
part, with the Commission, which notice is effective.\20\ For these
reasons, and because the proposal does not raise new or novel
regulatory issues, the Commission believes that waiver of the operative
delay is consistent with the protection of investors and the public
interest. Accordingly, the Commission hereby waives the 30-day
operative delay and designates the proposal operative upon filing.\21\
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\18\ 17 CFR 240.19b-4(f)(6).
\19\ 17 CFR 240.19b-4(f)(6)(iii).
\20\ See supra note 6.
\21\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of 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="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#5725223b327a34383a3a323923241724323479303821"><span class="__cf_email__" data-cfemail="d4a6a1b8b1f9b7bbb9b9b1baa0a794a7b1b7fab3bba2">[email protected]</span></a>. Please include
file number SR-MEMX-2026-04 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-MEMX-2026-04. 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-MEMX-2026-04 and
should be submitted on or before March 12, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\22\
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\22\ 17 CFR 200.30-3(a)(12), (59).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-03237 Filed 2-18-26; 8:45 am]
BILLING CODE 8011-01-P
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