Notice2026-04060
Joint Industry Plan; Order Approving Amendment To Add Paragraph (c) to Section 6 of the Plan for the Purpose of Developing and Implementing Procedures Designed To Facilitate the Listing and Trading of Standardized Options (OLPP) To Create a Forum for Discussion Concerning Plan Matters
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
March 2, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 40 (Monday, March 2, 2026)</title>
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[Federal Register Volume 91, Number 40 (Monday, March 2, 2026)]
[Notices]
[Pages 10168-10169]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-04060]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-104892; File No. 4-443]
Joint Industry Plan; Order Approving Amendment To Add Paragraph
(c) to Section 6 of the Plan for the Purpose of Developing and
Implementing Procedures Designed To Facilitate the Listing and Trading
of Standardized Options (OLPP) To Create a Forum for Discussion
Concerning Plan Matters
February 25, 2026.
I. Introduction
On November 13, 2025, Cboe BZX Exchange, Inc., Cboe C2 Exchange,
Inc., Cboe EDGX Exchange, Inc., and Cboe Exchange, Inc., on behalf of
the Sponsors \1\ of the Plan for the Purpose of Developing and
Implementing Procedures Designed to Facilitate the Listing and Trading
of Standardized Options Submitted Pursuant to Section 11A(a)(3)(B) of
the Securities Exchange Act of 1934 (``Options Listing Procedures
Plan,'' ``OLPP,'' or ``Plan''),\2\ filed with the Securities and
Exchange Commission (``Commission''), pursuant to Section 11A of the
Securities Exchange Act of 1934 (``Exchange Act'') \3\ and Rule 608 of
Regulation NMS thereunder,\4\ a proposed amendment to the OLPP
(``Amendment'').\5\ The Amendment proposes to add a provision to the
OLPP authorizing the OLPP Sponsors to act jointly to discuss issues
within the scope of the Plan, authority which is intended to facilitate
both discussions among the Sponsors and, as appropriate, discussions
among the Sponsors and other industry participants, concerning ways to
achieve and enhance a fair and orderly market for options trading. As
discussed below, the Amendment also includes governance provisions with
respect to the manner in which the Plan discussions will take place and
a provision requiring that Plan discussions cannot take place without a
Commission staff observer present. The Amendment was published for
comment in the Federal Register on December 1, 2025.\6\ The Commission
has not received any comments. This order approves the Amendment.
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\1\ The Sponsors of the OLPP are: BOX Exchange LLC; Cboe BZX
Exchange, Inc.; Cboe C2 Exchange, Inc.; Cboe EDGX Exchange, Inc.;
Cboe Exchange, Inc.; MEMX LLC; Miami International Securities
Exchange LLC; MIAX Emerald, LLC; MIAX Pearl, LLC; MIAX Sapphire,
LLC; Nasdaq BX, Inc.; Nasdaq GEMX, LLC; Nasdaq ISE, LLC; Nasdaq MRX,
LLC; Nasdaq PHLX LLC; The Nasdaq Stock Market LLC; NYSE American
LLC; NYSE Arca, Inc.; and The Options Clearing Corporation
(``OCC'').
\2\ OLPP is a national market system plan approved by the
Commission pursuant to Section 11A of the Exchange Act and Rule 608
thereunder. See Securities Exchange Act Release No. 44521 (July 6,
2001), 66 FR 36809 (July 13, 2001). The full text of the OLPP is
available at <a href="https://www.theocc.com/getmedia/198bfc93-5d51-443c-9e5b-fd575a0a7d0f/options_listing_procedures_plan.pdf">https://www.theocc.com/getmedia/198bfc93-5d51-443c-9e5b-fd575a0a7d0f/options_listing_procedures_plan.pdf</a>.
\3\ 15 U.S.C. 78k-1.
\4\ 17 CFR 242.608.
\5\ The Sponsors previously filed an amendment on October 31,
2024. See Securities Exchange Act Release No. 101640 (Nov. 15,
2024), 89 FR 92238 (Nov. 21, 2024). On February 19, 2025, the
Sponsors withdrew that amendment. The Amendment revised the October
2024 version by adding several prerequisites and conditions for Plan
discussions to occur to promote transparency and participation.
\6\ See Securities Exchange Act Release No. 104268 (Nov. 25,
2025), 90 FR 55203 (Dec. 1, 2025) (``Notice'').
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II. Background and Description of the Amendment
A. Background
The OLPP is a national market system plan that, among other things,
provides procedures for listing and trading new multiply listed options
classes and selecting new options series. As the number of listed
options classes and series, and the number of options exchanges,
increase over time, the amount of options quotation data that market
participants encounter increases, which presents certain issues and
ideas for how to address them.\7\ For example, as discussed in the
Notice, the Commission approved an OLPP amendment from the Sponsors
that was intended to reduce the amount of quote traffic that had
resulted from the adoption of the Options Penny Pilot Program, which
permitted the options exchanges to quote certain options series in one-
cent and five-cent increments and thus expanded the number of series
quoted.\8\
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\7\ See, e.g., Letter from Ellen Green, Managing Director,
SIFMA, dated Apr. 8, 2019, available at <a href="https://www.sifma.org/resources/submissions/letters/options-market-structure-proliferation-of-listed-options-series-available-for-quoting-and-trading/">https://www.sifma.org/resources/submissions/letters/options-market-structure-proliferation-of-listed-options-series-available-for-quoting-and-trading/</a>. See also Notice, supra note 6, at 90 FR 55205 (noting the
increase in series listed per day has increased from 1,107,980 in
June 2020 to 1,406,632 in June 2024).
\8\ See also Notice, supra note 6, at 90 FR 55204. See also
Securities Exchange Act Release No. 60531 (Aug. 19, 2009), 74 FR
43173 (Aug. 26, 2009).
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B. Description of the Amendment
The Amendment will authorize the Plan Sponsors to act jointly to
discuss matters within the scope of the Plan for the purpose of
discussing whether to file proposed Plan amendments, or whether
exchanges on their own motion are considering filing proposed rule
changes with the Commission, in either case to promote, where
appropriate, uniform procedures and standards for multiply listed
options overlying equity securities to facilitate their trading on
multiple exchanges (``Plan discussions''). Matters within the scope of
the Plan that may be the subject of such discussions could include for
example: procedures for the listing of standardized options; options
adjustments; criteria related to permissible classes of options
overlying equity securities and series' strikes, expirations, and
trading increments; and the potential reduction of the number of listed
option series to mitigate quote message traffic and address capacity
issues.
The Amendment provides several prerequisites and conditions for
Plan discussions to occur, which are
[[Page 10169]]
intended to promote transparency and participation. First, the Sponsors
may hold Plan discussions as frequently as they deem necessary and
appropriate.\9\ Any Sponsor may request Plan discussions be held, and
such discussions may occur as part of broader industry group meetings.
Second, an agenda for any Plan discussions must be prepared and
distributed at least two business days in advance of such discussions
to all persons required to be present.\10\ Any Sponsor may object to
the inclusion of any proposed agenda item, in which case that item
would be removed from the agenda. Third, the following persons must be
present during any Plan discussions: (i) one or more representatives of
each Sponsor; (ii) legal counsel for each exchange Sponsor (who may
also serve as the representative); and (iii) one or more Commission
staff observers.\11\ The Sponsors may invite additional observers,
including representatives of industry members and/or industry groups,
to attend such discussions (or portions thereof), though any Sponsor
may object to such invitation in which case that observer would not be
permitted to attend such discussions. Fourth, one Sponsor
representative must take minutes of any Plan discussions and provide
each Sponsor with an opportunity to review and approve such
minutes.\12\ Following any Plan discussions, the Sponsors can act
jointly for purposes of determining whether to file with the Commission
one or more proposed amendments to the Plan or one or more proposed
rule change filings pursuant to Rule 19b-4 under the Exchange Act for
matters within the scope of the Plan that were the subject of Plan
discussions.\13\
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\9\ See proposed Section 6(c)(1) of the OLPP.
\10\ See id. at 6(c)(2).
\11\ See id. at 6(c)(3).
\12\ See id. at 6(c)(4).
\13\ See id. at 6(c)(5).
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III. Discussion and Commission Findings
Section 11A of the Exchange Act authorizes the Commission, by rule
or order, to authorize or require the self-regulatory organizations
(``SROs'') to act jointly with respect to matters as to which they
share authority under the Exchange Act in planning, developing,
operating, or regulating a national market system or one or more
facilities thereof.\14\ Rule 608 of Regulation NMS authorizes two or
more SROs, acting jointly, to file with the Commission proposed
amendments to an effective national market system plan, and further
provides that no amendment may become effective unless approved by the
Commission or otherwise permitted to be put into effect upon filing
with the Commission.\15\
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\14\ See 15 U.S.C. 78k-1(a)(3)(B).
\15\ 17 CFR 242.608(a)(1) and (b)(1).
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The Commission shall approve an amendment to an effective plan,
with such changes or subject to such conditions as the Commission may
deem necessary or appropriate, if it finds that such plan or amendment
is necessary or appropriate in the public interest, for the protection
of investors and the maintenance of fair and orderly markets, to remove
impediments to, and perfect the mechanisms of, a national market
system, or otherwise in furtherance of the purposes of the Exchange
Act.\16\
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\16\ See 17 CFR 242.608(b)(2).
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The Commission finds that the Amendment is consistent with the
requirements of the Exchange Act and Rule 608 of Regulation NMS for the
reasons set forth below.\17\ The Amendment will provide a forum and
procedures for the Sponsors and other parties to jointly discuss
matters concerning options listing ``to achieve and enhance a fair and
orderly market for options trading.'' \18\ The Amendment also includes
governance provisions with respect to convening and conducting such
discussions, including how a discussion should be initiated, formation
of the agenda for a discussion, required representatives for the
discussion (including Commission staff observers), and maintenance of
written records for the discussions. These provisions provide a
reasonable framework to promote participation and transparency about
discussions between Sponsors and other parties, while helping to ensure
such discussions are limited to matters within the scope of the Plan.
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\17\ 17 CFR 242.608.
\18\ See Notice, supra note 6, at 90 FR 55203-04.
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Finally, the Amendment authorizes the convening of a forum for Plan
discussions, but does not provide the Sponsors with any new authority
to take action under the Plan. Rather, any proposed changes to the Plan
or any exchange rules that result from Plan discussions would require a
formal proposal that would be filed with the Commission and published
for public notice and comment. The Amendment is designed to facilitate
broad dialogue on options listings, which can involve highly technical
and complex questions and considerations and thus can benefit from a
deliberative process that solicits a multitude of views. As a result,
Sponsors will have access to valuable industry expertise thereby
facilitating their ability to draft and file thoughtful and thoroughly
considered Plan amendments and SRO proposed rule changes that are
better positioned to elicit meaningful public comment.
For the reasons discussed above, the Commission finds that the
Amendment is necessary or appropriate in the public interest, for the
protection of investors and the maintenance of fair and orderly
markets, to remove impediments to, and perfect the mechanisms of, a
national market system, or otherwise in furtherance of the purposes of
the Exchange Act.
IV. Conclusion
It is therefore ordered, pursuant to Section 11A of the Exchange
Act \19\ and Rule 608(b)(2) of Regulation NMS thereunder,\20\ that the
Amendment to the Options Listing Procedures Plan (File No. 4-443) be,
and hereby is, approved.
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\19\ 15 U.S.C. 78k-1.
\20\ 17 CFR 242.608(b)(2).
By the Commission.
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-04060 Filed 2-27-26; 8:45 am]
BILLING CODE 8011-01-P
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