Notice2026-03238
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing of a Proposed Rule Change To Amend Rule 5.3-O
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
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 8037-8042]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03238]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104842; File No. SR-NYSEARCA-2026-17]
Self-Regulatory Organizations; NYSE Arca, Inc.; Notice of Filing
of a Proposed Rule Change To Amend Rule 5.3-O
February 13, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(the ``Act''),\1\ and Rule 19b-4 thereunder,\2\ notice is hereby given
that on February 6, 2026, NYSE Arca, Inc. (the ``Exchange'' or ``NYSE
Arca'') filed with the Securities and Exchange Commission (the
``Commission'') the proposed rule change as described in Items I, II,
and III 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 Rule 5.3-O (Criteria for Underlying
Securities) to adopt a [sic] listing criteria for options on a
Commodity-Based Trust that holds multiple crypto assets. The proposed
rule change is available on the Exchange's website at <a href="http://www.nyse.com">www.nyse.com</a>, at
the principal office of the Exchange, and at the Commission's Public
Reference Room.
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 Rule 5.3-O (Criteria for Underlying
Securities). Specifically, the Exchange proposes to amend Rule 5.3-O(g)
to list options on Exchange-Traded Fund Shares (``ETFs'').
The Exchange notes that this proposal is competitive as Nasdaq ISE,
LLC (``ISE'') has filed to adopt a substantially identical rule
change.\3\
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\3\ See Securities Exchange Act Release No. 104107 (September
26, 2025), 90 FR 47456 (October 1, 2025) (SR-ISE-2025-30) (Notice of
Filing of Proposed Rule Change to Adopt Listing Criteria for Options
on a Commodity-Based Trust That Holds Multiple Crypto Assets).
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On November 12, 2025, the Exchange's proposal to amend its listing
rules at Rule 5.3-O(g) was deemed approved.\4\ Currently, Rule 5.3-O(g)
[[Page 8038]]
specifies that the Exchange may list and trade options on shares of a
Commodity-Based Trust that meets the generic criteria of NYSE Arca Rule
8.201 (Generic) \5\ provided the trust holds a single crypto asset.\6\
Further, a Commodity-Based Trust that meets the requirements of Rule
5.3-O(g) must also satisfy the following requirements: (A) the total
global supply of the underlying crypto asset held by the Commodity-
Based Trust must have an average daily market value of at least $700
million over the last 12 months; and (B) the crypto asset held by the
Commodity-Based Trust must underlie 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 (``ISG'').
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\4\ See Securities Exchange Act Release No. 104210 (November 21,
2025), 90 FR 52727 (November 21, 2025) (SR-NYSEARCA-2025-16). See
also <a href="https://www.nyse.com/trader-update/history#110000952667">https://www.nyse.com/trader-update/history#110000952667</a>.
\5\ NYSE Arca Rule 8.201-E (generic) permits the listing and
trading of certain qualifying exchange-traded products that
physically hold commodities like precious metals and digital asset
commodities on the Exchange. Pursuant to NYSE Arca Rule 8.201-E
(Generic), the term ``Commodity-Based Trust Shares'' means a
security that: (i) is issued by a trust, limited liability company,
partnership, or other similar entity (``Trust'') that, if
applicable, is operated by a registered commodity pool operator
pursuant to the Commodity Exchange Act, and is not registered as an
investment company pursuant to the Investment Company Act of 1940,
or series or class thereof; (ii) is designed to reflect the
performance of one or more reference assets or an index of reference
assets; (iii) in order to reflect the performance as provided in
(c)(1)(ii) above, is issued by a Trust that holds (A) one or more
commodities or commodity-based assets as defined in (c)(3) below,
and (B) in addition to such commodities or commodity-based assets,
may hold securities, cash, and cash equivalents; (iv) is issued by
such Trust in a specified aggregate minimum number in return for a
deposit of (A) a specified quantity of the underlying commodities,
commodity-based assets, securities, cash, and/or cash equivalents,
or (B) a cash amount with a value based on the next determined net
asset value per Trust share; and (v) when aggregated in the same
specified minimum number, may be redeemed at a holder's request by
such Trust which will deliver to the redeeming holder (A) the
specified quantity of the underlying commodities, commodity-based
assets, securities, cash, and/or cash equivalents, or (B) a cash
amount with a value based on the next determined net asset value per
Trust share.
\6\ For purposes of this rule the term ``crypto asset'' means an
asset that is generated, issued and/or transferred using a
blockchain or similar distributive ledger technology network,
including but not limited to, assets known as ``tokens,'' ``digital
assets,'' ``virtual currencies,'' and ``coins'' and that relies on
cryptographic protocols. See Rule 5.3-O(g)(3).
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At this time, the Exchange proposes to amend Rule 5.3-O(g)(x) to
permit the listing and trading of options on a Commodity-Based Trust
that holds multiple crypto assets in addition to a Commodity-Based
Trust that holds a single crypto asset. As amended, Rule 5.3-O(g)(x)
would state:
Securities deemed appropriate for options trading shall include
shares or other securities (``Exchange-Traded Fund Shares'' or ``Fund
Shares'') that are traded on a national securities exchange and are
defined as an ``NMS stock'' in Rule 600(b)(55) of Regulation NMS, and
that . . . (x) represent interests in a Commodity-Based Trust that meet
the generic criteria of NYSE Arca Rule 8.201-E (Generic), except that
the Commodity-Based Trust holds a single crypto asset or multiple
crypto assets as defined in subparagraph (4) below, provide that:.\7\
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\7\ The Exchange proposes to amend ``meet'' to ``meets.''
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Further, the Exchange proposes to amend Rule 5.3-O(g)(3) to state:
Additionally, with respect to a Commodity-Based Trust that meets
the requirements of Rule 5.3-O(g)(x), the following requirements are
satisfied: (A) the total global supply of each underlying crypto
asset(s) held by the Commodity-Based Trust has an average daily market
value of at least $700 million over the last 12 months; and (B) each
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. For
purposes of this rule the term ``crypto asset'' means an asset that is
generated, issued and/or transferred using a blockchain or similar
distributive ledger technology network, including but not limited to,
assets known as ``tokens,'' ``digital assets,'' ``virtual currencies,''
and ``coins'' and that relies on cryptographic protocols.
With the addition of multi crypto assets, the criteria would
require each underlying crypto asset to meet the global supply figure
and to underlie a derivative contract that trades on a market with
which the Exchange has a comprehensive surveillance sharing agreement.
The market value for each underlying crypto asset held by a Commodity-
Based Trust will be calculated by taking the total global supply of the
particular crypto asset multiplied by the token price of that asset.\8\
The total supply of a crypto asset includes all crypto assets currently
issued and does not include unissued crypto assets.\9\
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\8\ The market supply information can be obtained from publicly
available sources such as <a href="http://coingecko.com">coingecko.com</a> or <a href="http://coinmarketcap.com">coinmarketcap.com</a>.
\9\ For example, if Bitcoin were the underlying crypto asset,
the Exchange would consider the total supply of all Bitcoin
currently issued instead of the maximum supply, which would be
currently issued as well as unminted Bitcoin. As of September 12,
2025, Bitcoin's total supply was 19,919,915 (the maximum supply was
21,000,000). See <a href="https://www.coingecko.com/en/coins/bitcoin">https://www.coingecko.com/en/coins/bitcoin</a>. The
Exchange would calculate market value by utilizing the total supply
number multiplied by the Bitcoin price on that day.
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Pursuant to this proposed rule change, the proposed listing
criteria would permit a Commodity-Based Trust that is generically
listed pursuant to NYSE Arca Rule 8.201-E (Generic) and holds multiple
crypto assets to qualify for the listing of options on that ETF,
provided Rule 5.3-O(g)(3) has also been met, as well as the listing
criteria in Rule 5.3-O(a) and (b), or Rule 5.3-O(g)(1)(B).
Similar to options on any ETF, an option on a Commodity-Based Trust
that meets the requirements of Rule 5.3-O(g)(x) would also be subject
to the Exchange's continued listing standards for options on ETFs set
forth in Rule 5.4-O(k). Pursuant to Rule 5.4-O(k), ETFs approved for
options trading pursuant to Rule 5.3-O(g) will not be deemed to meet
the requirements for continued approval, and the Exchange will not open
for trading any additional series of option contracts of the class
covering such ETFs if the ETFs are delisted from trading as provided in
Rule 5.4-O(b)(6) \10\ or the ETFs are halted from trading on their
primary market.\11\ With respect to options on Commodity-Based Trusts
that are approved subject to Rule 5.3-O(g)(x) the Exchange proposes to
amend Rule 5.4-O(k) to adopt a new subparagraph (3) which states, ``In
the case of options covering Exchange-Traded Fund Shares approved
pursuant to Rule 5.3-O(g)(x), if the criteria in Rule 5.3-O(g)(3)(A)
are no longer satisfied, as determined by the Exchange on a monthly
basis, or if the criteria in Rule 5.3-O(g)(3)(B) are no longer
satisfied.'' \12\ This proposed new criteria would require ETFs that
are listed pursuant to Rule 5.3-O(g)(x) to continue to meet the
requirements of Rule 5.3-O(g)(3)(A) and (B). The Exchange is proposing
that the criteria in Rule 5.3-O(g)(3)(A) be met on a monthly basis
while the criteria in Rule 5.3-O(g)(3)(B) be met on a daily basis. The
Exchange believes that requiring the criteria in Rule 5.3-O(g)(3)(A) to
be met on a monthly basis is reasonable given that the Exchange
believes that it is unlikely that a crypto asset with an
[[Page 8039]]
average daily market value of at least $700 million over the previous
twelve months would fail to meet that standard as a result of trading
over a relatively short period of time. By way of example, if a crypto
asset has a market capitalization of $900 million and traded at that
market capitalization for 15 days in a 20-day trading month, the crypto
asset could lose a substantial amount of its value (up to 88%) and
still meet the criteria. Similarly, a crypto asset with a market
capitalization of $500 million for 15 days in a 20-day trading month,
would have to achieve a market capitalization of $1.3 billion (a 160%
increase) in the last 5 days to meet the criteria. Given the
unlikelihood that there would be a huge movement over a month's period
of time and considering the work that would be required to calculate
the criteria on a daily basis as compared to each month, the Exchange
believes that the proposed continued listing obligation for the average
daily market value is sufficient. Further, options on Commodity-Based
Trusts that are approved subject to Rule 5.3-O(g)(x) would continue to
be subject to Rule 5.4-O(k)(5), as renumbered, which states that the
Exchange may consider suspending open [sic] transactions in options of
an ETF if, ``such other event shall occur or condition exist that in
the opinion of the Exchange makes further dealing in such options on
the Exchange inadvisable.'' The Exchange may determine at any point to
delist an option on a Commodity-Based Trust that may not have
sufficient liquidity or market demand.
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\10\ Rule 5.4-O(b)(6) provides, if underlying security is
approved for options listing and trading under the provisions of
Rule 5.3-O(a), the trading volume of the Original Security (as
therein defined) prior to but not after the commencement of trading
in the Restructured Security (as therein defined), including ``when
issued'' trading, may be taken into account in determining whether
the trading volume requirement of (3) of this paragraph (b), as well
as the trading volume requirement of paragraph (e) of this Rule are
satisfied.
\11\ See Rule 5.4-O(k).
\12\ The Exchange proposes to renumber the remaining paragraphs
in Rule 5.4-O(k).
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Consistent with Rule 6.4-O, which governs the opening of options
series on a specific underlying security (including ETFs), the Exchange
would open at least one expiration month \13\ for options on a
Commodity-Based Trusts at the commencement of trading on the Exchange
and may also list series of options on such Commodity-Based Trusts for
trading on a weekly,\14\ monthly,\15\ or quarterly \16\ basis. The
Exchange may also list long-term equity option series (``LEAPS'') that
expire from twelve to thirty-nine months from the time they are
listed.\17\
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\13\ See Rule 6.4-O(d). The monthly expirations are subject to
certain listing criteria for underlying securities described within
Rule 5.3-O. Monthly listings expire the third Friday of the month.
The term ``expiration date'' (unless separately defined elsewhere in
the OCC By-Laws), when used in respect of an option contract
(subject to certain exceptions), means the third Friday of the
expiration month of such option contract, or if such Friday is a day
on which the exchange on which such option is listed is not open for
business, the preceding day on which such exchange is open for
business. See OCC By-Laws Article I, Section 1. Pursuant to Rule
6.4-O(a), additional series of options of the same class may be
opened for trading on the Exchange when the Exchange deems it
necessary to maintain an orderly market, to meet customer demand or
when the market price of the underlying stock moves more than five
strike prices from the initial exercise price or prices. New series
of options on an individual stock may be added until the beginning
of the month in which the options contract will expire. Due to
unusual market conditions, the Exchange, in its discretion, may add
a new series of options on an individual stock until the close of
trading on the business day prior to expiration.
\14\ See Rule 6.4-O, Commentary .07.
\15\ See Rule 6.4-O, Commentary .09.
\16\ See Rule 6.4-O, Commentary .08.
\17\ See Rule 6.4-O(d).
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Pursuant to Rule 6.4-O, Commentary .05(a), which governs strike
prices of series of options on ETFs, the interval between strike prices
of series of options on an ETF, including ETFs listed pursuant to this
proposed rule change, would be $1 or greater when the strike price is
$200 or less and $5 or greater where the strike price is over $200.\18\
Additionally, the Exchange may list series of options pursuant to the
$1 Strike Price Interval Program,\19\ the $0.50 Strike Program,\20\ the
$2.50 Strike Price Program,\21\ and the $5 Strike Program.\22\ Pursuant
to Rule 6.72-O, where the price of a series of options on an ETF is
less than $3.00, the minimum increment will be $0.05, and where the
price is $3.00 or higher, the minimum increment will be $0.10.\23\ Any
and all new series of options on a Commodity-Based Trusts that are
approved pursuant to this proposed rule change would be subject to the
expirations, strike prices, and minimum increments set forth in Rules
6.4-O and 6.72-O, as applicable.
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\18\ The Exchange notes that for options listed pursuant to the
Short Term Option Series Program, the Monthly Options Series
Program, and the Quarterly Options Series Program, Rule 6.4-O,
Commentary .07 through .09, specifically set forth intervals between
strike prices on Quarterly Options Series, Short Term Option Series,
and Monthly Options Series, respectively.
\19\ See Rule 6.4-O, Commentary .04.
\20\ See Rule 6.4-O, Commentary .13.
\21\ See Rule 6.4-O, Commentary .03.
\22\ See Rule 6.4-O, Commentary .10.
\23\ If options on a Commodity-Based Trust are eligible to
participate in the Penny Interval Program, the minimum increment of
$0.01 below $3.00 and $0.50 above $3.00 would apply. See Rule 6.4-
O(a)(3). See also Rule 6.72A-O (which describes the requirements for
the Penny Interval Program).
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Options on Commodity-Based Trusts that are approved pursuant to
this proposed rule change would trade in the same manner as options on
other ETFs on the Exchange. The Exchange rules that currently apply to
the listing and trading of all options on ETFs on the Exchange,
including, for example, rules that govern listing criteria,
expirations, exercise prices, minimum increments, position and exercise
limits, margin requirements, customer accounts and trading halt
procedures would apply to the listing and trading of options on
Commodity-Based Trusts on the Exchange in the same manner as they apply
to other options on all other ETFs that are listed and traded on the
Exchange.
Position and exercise limits for options on Commodity-Based Trusts
that are approved pursuant to this proposed rule change would be
determined pursuant to Rules 6.8-O and 6.9-O, respectively, as is the
case for options on other ETFs. Position and exercise limits for
options on ETFs vary according to the number of outstanding shares and
the trading volumes of the underlying security over the past six
months, where the largest in capitalization and the most frequently
traded ETFs have position and exercise limit of 250,000 contracts (with
adjustments for splits, re-capitalizations, etc.) on the same side of
the market; and smaller capitalization ETFs have position and exercise
limits of 200,000, 75,000, 50,000 or 25,000 contracts (with adjustments
for splits, re-capitalizations, etc.) on the same side of the market.
Further, the Exchange notes that Rule 4.16-O, which governs margin
requirements applicable to the trading of all options on the Exchange,
including options on ETFs, will also apply to the trading of options on
Commodity-Based Trusts listed pursuant to this proposed rule change.
The Exchange represents that the surveillance procedures applicable
to all other options on other ETFs currently listed and traded on the
Exchange will apply to the trading on the Exchange of options on
Commodity-Based Trusts that are listed pursuant to this proposed rule
change. The Exchange represents that it has the necessary systems
capacity to support the new options series. The Exchange believes that
its existing surveillance and reporting safeguards are designed to
deter and detect possible manipulative behavior which might potentially
arise from listing and trading options on ETFs, including the listing
of options on Commodity-Based Trusts that are listed pursuant to this
proposed rule change.
Also, the Exchange may obtain information from designated contract
markets that are members of the ISG related to a financial instrument
that is based, in whole or in part, upon an interest in or performance
of a crypto asset, as applicable. The Exchange has specified in
proposed Rule 5.3-O(g)(3) that each crypto asset held by the Commodity-
Based Trust must underlie a derivatives contract that trades on a
market with which the Exchange has a
[[Page 8040]]
comprehensive surveillance sharing agreement, whether directly or
through common membership in ISG.\24\ The Exchange will be required to
ensure that this requirement is met prior to listing options on a
Commodity-Based Trust listed pursuant to proposed Rule 5.3-O(g)(x).
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\24\ There are a number of futures contracts on digital asset
commodities that are listed and trading on the CME and Coinbase
Derivatives, both of which are ISG members. See <a href="https://www.cmegroup.com/markets/cryptocurrencies.html#products">https://www.cmegroup.com/markets/cryptocurrencies.html#products</a>. See also
<a href="https://www.coinbase.com/derivatives">https://www.coinbase.com/derivatives</a>.
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Additionally, the Exchange has also analyzed its capacity and
represents that it believes the Exchange and the Options Price
Reporting Authority (``OPRA'') have the necessary systems capacity to
handle the additional traffic associated with the listing of new series
of ETFs, including the trading of options on Commodity-Based Trusts
that are approved pursuant to this proposed rule change, up to the
number of expirations currently permissible under the Exchange rules.
Finally, today, the Exchange lists and trades options on ETFs that
would qualify for listing as an option on a Commodity-Based Trust under
proposed Rule 5.3-O(g)(x).\25\
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\25\ The following ETFs currently have options listed on them on
the Exchange: iShares Bitcoin Trust, the Fidelity Wise Origin
Bitcoin Fund, the ARK21 Shares Bitcoin ETF, the Grayscale Bitcoin
Trust (BTC), the Grayscale Bitcoin Mini Trust BTC, and the Bitwise
Bitcoin ETF. See Rule 5.3-O, Commentary .01. The Exchange filed rule
proposals and received the appropriate regulatory notice or approval
to list the aforementioned options on the ETFs.
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2. Statutory Basis
The Exchange believes that its proposed rule change is consistent
with Section 6(b) of the Act,\26\ in general, and furthers the
objectives of Section 6(b)(5) of the Act \27\ 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.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section (6)(b)(5) \28\ requirement that the rules
of an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\26\ 15 U.S.C. 78f(b).
\27\ 15 U.S.C. 78f(b)(5).
\28\ 15 U.S.C. 78(f)(b)(5).
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In particular, the Exchange believes that its proposal to permit
Commodity-Based Trusts that hold multiple crypto assets to be listed
and traded without the need for additional approvals, will remove
impediments to and perfect the mechanism of a free and open market and
a national market system and, in general, protect investors because it
would allow the Exchange to immediately list and trade qualifying
options on Commodity-Based Trusts, provided the initial listing
criteria has been met, without any additional approvals from the
Commission.
Specifically, the Exchange's proposal to amend Rule 5.3-O(g)(x) to
allow the listing and trading of options on units that represent
interests in Commodity-Based Trusts that meet the generic criteria of
NYSE Arca Rule 8.201-E (Generic),\29\ and hold multiple crypto assets
in addition to single crypto assets, is consistent with the Act because
it will permit the Exchange to offer options on certain Commodity-Based
Trusts soon after the listing of the ETF on NYSE Arca, provided all
listing criteria have been met. Listing these options will avail market
participants of the opportunity to hedge their positions in the
Commodity-Based Trusts in a timely manner, thereby providing investors
with the ability to hedge their exposure to the underlying Commodity-
Based Trust. Options on Commodity-Based Trusts benefits investors,
similar to the listing of any other option on an ETF, by providing
investors with a relatively lower-cost risk management tool to manage
their positions and associated risk in their portfolios more easily in
connection with exposure to the price of a crypto asset. Additionally,
listing options on Commodity-Based Trusts provides investors with the
ability to transact in such options on a listed market as opposed to
the OTC options market, which increases market transparency and
enhances the process of price discovery to the benefit of all
investors.
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\29\ See supra note 5.
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Also, this proposal would permit options on certain Commodity-Based
Trusts to be listed on the Exchange in the same manner as options on
ETFs that are subject to the current listing criteria in Rule 5.3-O(g).
The Exchange notes that the majority of ETFs are able to list and trade
options once the initial listing criteria have been met without the
need for additional approvals. The proposed rule change would allow
options on certain Commodity-Based Trusts to likewise list and trade
once the proposed listing criteria have been met without the need for
additional approvals.
As proposed, the Exchange would list options on a Commodity-Based
Trust that met the generic criteria of NYSE Arca Rule 8.201-E
(Generic), provided the Commodity-Based Trust held multiple crypto
assets. Further, each crypto asset held by the Commodity-Based Trust
would also be required to satisfy the conditions in proposed Rule 5.3-
O(g)(3), which requires that (A) the total global supply of each
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 (B) each 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 ISG.
These requirements are consistent with the Act and the protection
of investors as they are designed to ensure that the underlying ETF has
sufficient liquidity prior to listing options, which will help to
prevent disruption to the underlying market. The Exchange believes that
market supply serves as a good measure of liquidity to permit options
trading in options on Commodity-Based Trusts that hold multiple crypto
assets. Requiring each underlying crypto asset to have a requisite
amount of deliverable supply, in addition to all the other criteria the
ETF is required to have under NYSE Arca Rule 8.201-E (Generic), helps
to ensure adequate liquidity prior to listing. Further, ensuring each
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 ISG, will provide the Exchange with
information to adequately surveil options on qualifying Commodity-Based
Trusts. Today, the Exchange has a comprehensive surveillance sharing
agreement in place with both the CME and Coinbase Derivatives through
its common membership in ISG. This facilitates the sharing of
information that is available to the CME and Coinbase Derivatives
through their surveillance of their respective markets, including their
surveillance of their respective digital asset futures markets.
The Exchange also believes the proposed rule change will remove
impediments to and perfect the mechanism of a free and open market
[[Page 8041]]
and a national market system, because it is consistent with current
Exchange rules, previously filed with the Commission. Options on
qualifying Commodity-Based Trusts must satisfy the initial listing
standards and continued listing standards currently in the Exchange
rules, applicable to options on all ETFs, including ETFs that hold
other crypto assets already deemed appropriate for options trading on
the Exchange in addition to the proposed criteria. Options on
qualifying Commodity-Based Trusts would trade in the same manner as any
other ETF options--the same Exchange rules that currently govern the
listing and trading of all ETF options, including permissible
expirations, strike prices and minimum increments, and applicable
position and exercise limits and margin requirements, will govern the
listing and trading of options on qualifying Commodity-Based Trusts.
Further, the proposal adopts new subparagraph (3) to Rule 5.4-O(k)
which will require each crypto asset held by a Commodity-Based Trust to
continue to meet the requirement of Rule 5.3-O(g)(3)(A) on a monthly
basis and for the criteria in Rule 5.3-O(g)(3)(B) to me [sic] met on a
continuous basis. Accordingly, each crypto asset held by a Commodity-
Based Trust must continue to have a total global supply with an average
daily market value of at least $700 million over the last 12 months,
and also must continue to underlie a derivatives contract that trades
on a market with which the Exchange has a surveillance sharing
agreement, whether directly or through common membership in the ISG.
The Exchange believes that this continued listing standard, in addition
to the requirements in Rule 5.3-O(g) would protect investors and the
public interest by ensuring that the crypto assets held by the
Commodity-Based Trust continue to remain liquid. The Exchange believes
that requiring the criteria in Rule 5.3-O(g)(3)(A) to be met on a
monthly basis is consistent with the Act and the protection of
investors given that the Exchange believes it is unlikely that a crypto
asset with an average daily market value of at least $700 million over
the previous twelve months would fail to meet that standard as a result
of trading over a relatively short period of time. Given the
unlikelihood that there would be a huge movement over a month's period
of time and considering the work that would be required to calculate
the criteria on a daily basis as compared to each month, the Exchange
believes that the proposed continued listing obligation for the average
daily market value criteria is sufficient. Further, options on
Commodity-Based Trusts that are approved subject to Rule 5.3-O(g)(x)
would continue to be subject to Rule 5.4-O(k)(5), as renumbered, which
states that the Exchange may consider suspending open [sic]
transactions in options of an ETF if, ``such other event shall occur or
condition exist that in the opinion of the Exchange makes further
dealing in such options on the Exchange inadvisable.'' The Exchange may
determine at any point to delist an option on a Commodity-Based Trust
that may not have sufficient liquidity or market demand.
Options on qualifying Commodity-Based Trusts would trade in the
same manner as any other ETF options--the same Exchange rules that
currently govern the listing and trading of all ETF options, including
permissible expirations, strike prices and minimum increments, and
applicable position and exercise limits and margin requirements, will
govern the listing and trading of options on qualifying Commodity-Based
Trusts.
The Exchange represents that it has the necessary systems capacity
to support the listing and trading of options on qualifying Commodity-
Based Trusts. The Exchange believes that its existing surveillance and
reporting safeguards are designed to deter and detect possible
manipulative behavior which might arise from listing and trading on the
Exchange of these options on Commodity-Based Trust [sic], particularly
in light of the additional requirement that each 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
ISG.
Finally, today, the Exchange lists and trades options on ETFs that
would qualify for listing as an option on a Commodity-Based Trust under
proposed Rule 5.3-O(g)(x).\30\
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\30\ The following ETFs currently have options listed on them on
the Exchange: iShares Bitcoin Trust, the Fidelity Wise Origin
Bitcoin Fund, the ARK21 Shares Bitcoin ETF, the Grayscale Bitcoin
Trust (BTC), the Grayscale Bitcoin Mini Trust BTC, and the Bitwise
Bitcoin ETF. See Rule 5.3-O, Commentary .01. The Exchange filed rule
proposals and received the appropriate regulatory notice or approval
to list the aforementioned options on the ETFs.
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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.
The Exchange does not believe that the proposal to amend the
listing criteria in Rule 5.3-O(g), with respect to ETFs, to adopt new
criteria to permit the listing and trading of options on certain
Commodity-Based Trusts that hold multiple crypto assets and that were
listed pursuant to NYSE Arca Rule 8.201-E (Generic), without the need
for additional approvals, will impose any burden on intramarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. All Exchange members will be able to trade options
on qualifying Commodity-Based Trusts that hold multiple crypto assets
in the same manner. Further, the proposed rules would apply in an equal
manner to options on qualifying Commodity-Based Trusts that contain
multiple crypto assets. Additionally, the Exchange notes that listing
and trading options on qualifying Commodity-Based Trusts on the
Exchange will subject such options to transparent exchange-based rules
as well as price discovery and liquidity, as opposed to alternatively
trading such options in the OTC market. The Exchange believes that the
proposed rule change may relieve any burden on, or otherwise promote,
competition as it is designed to increase competition for order flow on
the Exchange in a manner that is beneficial to investors by providing
them with a lower-cost option to hedge their investment portfolios in a
timely manner.
The Exchange does not believe that the proposal to amend the
listing criteria in Rule 5.3-O(g), with respect to ETFs, to adopt new
criteria to permit the listing and trading of options on certain
Commodity-Based Trusts that hold multiple crypto assets and that were
listed pursuant to NYSE Arca Rule 8.201-E (Generic), without the need
for additional approvals, will impose any burden on intermarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Other options exchanges are free to amend their
listing rules, as applicable, to permit them to list and trade options
on Commodity-Based Trusts.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were solicited or received with respect to the
proposed rule change.
[[Page 8042]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Within 45 days of the date of publication of this notice in the
Federal Register or within such longer period up to 90 days (i) as the
Commission may designate if it finds such longer period to be
appropriate and publishes its reasons for so finding or (ii) as to
which the Exchange consents, the Commission will:
A. by order approve or disapprove such proposed rule change, or
B. institute proceedings to determine whether the proposed rule
change should be disapproved.
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#92e0e7fef7bff1fdfffff7fce6e1d2e1f7f1bcf5fde4"><span class="__cf_email__" data-cfemail="ddafa8b1b8f0beb2b0b0b8b3a9ae9daeb8bef3bab2ab">[email protected]</span></a>. Please include
file number SR-NYSEARCA-2026-17 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-NYSEARCA-2026-17. 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-NYSEARCA-2026-17 and should be submitted
on or before March 12, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
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\31\ 17 CFR 200.30-3(a)(12).
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J. Matthew DeLesDernier,
Deputy Secretary.
[FR Doc. 2026-03238 Filed 2-18-26; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on February 19, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.