Notice2026-03602
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 2616, Priority of Orders, To Conform With Amendments to Rules 600 and 603 of Regulation NMS
Primary source
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Published
February 24, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 36 (Tuesday, February 24, 2026)</title>
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[Federal Register Volume 91, Number 36 (Tuesday, February 24, 2026)]
[Notices]
[Pages 8924-8926]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-03602]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104866; File No. SR-PEARL-2026-10]
Self-Regulatory Organizations; MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange
Rule 2616, Priority of Orders, To Conform With Amendments to Rules 600
and 603 of Regulation NMS
February 19, 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 10, 2026, MIAX PEARL, LLC (``MIAX Pearl'' or the
``Exchange'') filed with the Securities and Exchange Commission
(``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 Exchange Rule 2616, Priority of
Orders, to conform with amendments to Rules 600 and 603 of Regulation
NMS approved by the Commission that concern the reporting and
dissemination of odd lot information.\3\
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\3\ See Securities Exchange Act Release No. 101070 (September
18, 2024), 89 FR 81620 (October 8, 2024) (S7-30-22) (``Adopting
Release'').
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The text of the proposed rule change is available on the Exchange's
website at <a href="https://www.miaxglobal.com/markets/us-options/pearl-options/rule-filings">https://www.miaxglobal.com/markets/us-options/pearl-options/rule-filings</a> and at MIAX Pearl'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 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 Exchange Rule 2616, Priority of
Orders, to conform with amendments to Rules 600 and 603 of Regulation
NMS approved by the Commission that concern the reporting and
dissemination of odd lot information.\4\ Specifically, the Exchange
proposes to adopt subparagraph (b)(3) under Exchange Rule 2616 to
address the Exchange's odd lot reporting obligations under Rules 600
and 603 of Regulation NMS.
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\4\ See id.
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On September 18, 2024, the Commission adopted Regulation NMS:
Minimum Pricing Increments, Access Fees and Transparency of Better
Priced Orders,\5\ which among other things, accelerated the
implementation of the odd-lot information definition in Rule 600(b)(69)
of Regulation NMS \6\ and added information about the best odd-
[[Page 8925]]
lot order to the definition of odd-lot information.\7\ The Commission
adopted a compliance date for implementing odd-lot information as the
first business day of May 2026.\8\
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\5\ See id.
\6\ 17 CFR 242.600(b)(69).
\7\ 17 CFR 242.600(b)(69)(iii).
\8\ See Adopting Release, supra note 3, at 81679-81681.
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In the Adopting Release, the Commission adopted amendments to Rules
600(b)(69) \9\ and 603(b)(3) \10\ of Regulation NMS. Rule 600(b)(69) of
Regulation NMS defines odd-lot information.\11\ Rule 600(b)(69)(ii) of
Regulation NMS includes ``odd-lots at a price greater than or equal to
the national best bid and less than or equal to the national best
offer, aggregated at each price level at each national securities
exchange and national securities association.'' \12\ Rule
600(b)(69)(iii) of Regulation NMS includes the highest priced odd-lot
order to buy that is priced higher than the national best bid, and the
lowest priced odd-lot order to sell that is priced lower than the
national best offer (i.e., the ``BOLO'').\13\ Rule 603(b)(3) of
Regulation NMS, among other things, requires the national securities
exchanges and national securities associations to make available to the
exclusive Securities Information Processor (``SIPs'') all data
necessary to generate odd-lot information, and require the exclusive
SIPs to collect, consolidate and disseminate odd-lot information.\14\
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\9\ 17 CFR 242.600(b)(69).
\10\ 17 CFR 242.603(b)(3).
\11\ 17 CFR 242.600(b)(69). Rule 600(b)(69)(i) requires odd-lot
transaction data to be provided as part of odd-lot information. The
exclusive SIPs already collect, consolidate and disseminate odd-lot
transaction information. See Securities Exchange Act Release Nos.
70793 (Oct. 31, 2013), 78 FR 66788 (Nov. 6, 2013) (order approving
Amendment No. 30 to the UTP Plan to require odd-lot transactions to
be reported to consolidated tape); 70794 (Oct. 31, 2013), 78 FR
66789 (Nov. 6, 2013) (order approving Eighteenth Substantive
Amendment to the Second Restatement of the CTA Plan to require odd-
lot transactions to be reported to consolidated tape).
\12\ 17 CFR 242.600(b)(69)(ii).
\13\ 17 CFR 242.600(b)(69)(iii).
\14\ 17 CFR 242.603(b)(3).
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The Commission recently issued an Exemptive Order allowing the
exclusive SIPs to defer implementation of the odd-lot information as
defined in Rule 600(b)(69)(ii) for two-years until May 2028.\15\ In May
2026, the exclusive SIPs will begin disseminating the BOLO and the best
odd-lot bid and offer priced at or better than the NBBO from each
exchange and FINRA.\16\ The exclusive SIPs will begin to disseminate
odd-lot quotations priced between each exchange's and FINRA's best odd-
lot bid or offer and the NBBO for each NMS stock in May 2028. The
Exchange will provide the required odd-lot information to the SIPs in
accordance with the above implementation dates.
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\15\ See Securities Exchange Act Release No. 104612 (January 15,
2026), 91 FR 2577 (January 21, 2026) (Order Granting Temporary
Exemptive Relief, Pursuant to Section 36(a)(1) of the Securities
Exchange Act of 1934 from Compliance with Rule 600(b)(69)(ii) of
Regulation NMS.)
\16\ See Press Release, SEC Grants Request for Exemption Related
to Dissemination of Odd-Lot Depth of Book, dated January 22, 2026,
available at https://www.prnewswire.com/news-releases/sec-grants-
request-for-exemption-related-to-dissemination-of-odd-lot-depth-of-
book-
302668045.html#:~:text=NEW%20YORK%2C%20Jan.%2022%2C,quotation%20for%2
0each%20NMS%20stock.
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The Exchange now proposes to amend Exchange Rule 2616, Priority of
Orders, to adopt subparagraph (b)(3) to address the Exchanges odd lot
reporting obligations under Rules 600 and 603 of Regulation NMS. As
proposed, subparagraph (b)(3) to Exchange Rule 2616 would provide that
``[p]ursuant to Rule 603 of Regulation NMS under the Exchange Act and
the January 15, 2026 Exemptive Order issued by the Commission, MIAX
Pearl Equities will transmit for display to the appropriate network
processor the data necessary to generate odd-lot information, as
defined in Rule 600 of Regulation NMS under the Exchange Act, for each
NMS Stock.''
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\17\ in general, and furthers the objectives of Section 6(b)(1)
\18\ in particular, in that it enables the Exchange to be so organized
as to have the capacity to be able to carry out the purposes of the Act
and to comply, and to enforce compliance by its members and persons
associated with its members, with the provisions of the Act, the rules
and regulations thereunder, and the rules of the Exchange. The Exchange
also believes that the proposed rule change is consistent with Section
6(b)(5) \19\ of the Act in that it is designed to promote just and
equitable principles of trade, to foster cooperation and coordination
with persons engaged in facilitating transactions in securities, to
remove impediments to and perfect the mechanism of a free and open
market and a national market system and, in general, to protect
investors and the public interest.
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\17\ 15 U.S.C. 78f(b).
\18\ 15 U.S.C. 78f(b)(1).
\19\ 15 U.S.C. 78f(b)(5).
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The Exchange proposes to amend Exchange Rule 2616, Priority of
Orders, to adopt subparagraph (b)(3) to address the Exchange's odd lot
reporting obligations under Rules 600 and 603 of Regulation NMS.\20\
These changes are being proposed solely to codify in the Exchange's
Rules its obligations under Rule 603(b)(3) of Regulation NMS, which
requires it to report to the exclusive SIPs all data necessary to
generate odd-lot information.\21\ The proposed rule changes would
reduce potential investor and market participant confusion and
therefore remove impediments to and perfect the mechanism of a free and
open market and a national market system by ensuring that the
Exchange's rules properly reflect the requirements of Rule 603(b)(3) of
Regulation NMS. The Exchange also believes that the proposed rule
changes would remove impediments to and perfects the mechanism of a
free and open market by ensuring that persons subject to the Exchange's
jurisdiction, regulators, and the investing public can more easily
navigate and understand the Exchange's rules. The proposed rule changes
would not be inconsistent with the public interest and the protection
of investors because investors will not be harmed and in fact would
benefit from the increased transparency and clarity, thereby reducing
potential confusion.
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\20\ See Adopting Release, supra note 3.
\21\ 17 CFR 242.603(b)(3).
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B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
The Exchange believes the proposed rule changes do not impose any
burden on intramarket or intermarket competition that is not necessary
or appropriate in furtherance of the purposes of the Act. The proposed
rule change is not intended to address competitive issues but rather
are concerned solely with amending the Exchange's Rules to address the
Exchanges odd lot reporting obligations under Rules 600 and 603 of
Regulation NMS.\22\
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\22\ See Adopting Release, supra note 3.
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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.
[[Page 8926]]
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Pursuant to Section 19(b)(3)(A) of the Act \23\ and Rule 19b-
4(f)(6) \24\ thereunder, the Exchange has designated this proposal as
one that effects a change that: (i) does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest.
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\23\ 15 U.S.C. 78s(b)(3)(A).
\24\ 17 CFR 240.19b-4(f)(6).
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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#fe8c8b929bd39d9193939b908a8dbe8d9b9dd0999188"><span class="__cf_email__" data-cfemail="2f5d5a434a024c4042424a415b5c6f5c4a4c01484059">[email protected]</span></a>. Please include
file number SR-PEARL-2026-10 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-PEARL-2026-10. 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-PEARL-2026-10 and should be submitted on
or before March 17, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\25\
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\25\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-03602 Filed 2-23-26; 8:45 am]
BILLING CODE 8011-01-P
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