Notice2026-06153
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing of a Proposed Rule Change To Adopt Extended Trading Hours for Eligible Equity and Index Options
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 31, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 61 (Tuesday, March 31, 2026)</title>
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[Federal Register Volume 91, Number 61 (Tuesday, March 31, 2026)]
[Notices]
[Pages 16066-16074]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-06153]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105097; File No. SR-MRX-2026-11]
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing
of a Proposed Rule Change To Adopt Extended Trading Hours for Eligible
Equity and Index Options
March 26, 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 March 19, 2026, Nasdaq MRX, LLC (``MRX'' 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 its rules to adopt extended trading
hours to allow for the trading of certain eligible index options and
equity options, and make related conforming changes.
[[Page 16067]]
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/mrx/rulefilings">https://listingcenter.nasdaq.com/rulebook/mrx/rulefilings</a>,
and at the principal office of the Exchange.
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 its rules to adopt extended trading
hours (``Extended Trading Hours'' or ``ETH'') for certain eligible
index options and equity options, and to make related conforming
changes. Specifically for index options, the Exchange proposes to allow
for ETH trading of NDX,\3\ NDPX,\4\ and XND \5\ options during ETH. For
equity (e.g., stock and ETF) options, the Exchange proposes to allow
for ETH trading of multi-listed equity options that meet certain
eligibility criteria based on quantitative metrics like trading volume
and market capitalization, which are designed to limit eligibility to
actively traded and liquid products. As discussed in detail below,
Extended Trading Hours will consist of:
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\3\ NDX options refers to a.m.-settled options on the Nasdaq-100
Index.
\4\ NDXP options refers to p.m.-settled options on the Nasdaq-
100 Index.
\5\ XND options refers to options that are based on 1/100 the
value of the Nasdaq-100 Index.
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<bullet> An early ETH session (``Early ETH Session'') from 7:30
a.m. Eastern Time \6\ to 9:25 a.m.; and
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\6\ All times in this filing are Eastern Time unless otherwise
noted.
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<bullet> An extended close (``Extended Close'') where trading in
certain eligible option classes will extend beyond 4:00 p.m. to 4:15
p.m.
Background
Currently, options transactions may be made on the Exchange from
9:30 a.m. through 4:00 p.m. or 4:15 p.m.\7\ (9:30 a.m. through 4:00
p.m. or 4:15 p.m., as applicable, will be referred to as ``Regular
Trading Hours'' or ``RTH''). Regular Trading Hours are consistent with
the regular trading hours of other U.S. options exchanges and U.S.
equity exchanges. However, many U.S. equity exchanges and certain other
U.S. options exchanges, including Cboe Exchange, Inc. (``Cboe''),
presently allow for trading outside of Regular Trading Hours as
well.\8\
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\7\ See Options 3, Section 1.
\8\ For example, The Nasdaq Stock Exchange LLC (``Nasdaq'')
currently allows for a Pre-Market Hours session from 4:00 a.m. to
9:30 a.m. and a Post-Market Hours session from 4:00 p.m. until 8:00
p.m. See Nasdaq Equity 1, Section 1(a)(9). Cboe BZX Exchange, Inc.
(``BZX'') also allows for an Early Trading Session from 4:00 a.m. to
8:00 a.m., a Pre-Opening Session from 8:00 a.m. to 9:30 a.m., and an
After Hours Trading Session from 4:00 p.m. through 8:00 p.m. See BZX
Rule 1.5(c), (r), and (ff). Additionally, Cboe currently allows for
the trading of certain index options during Global Trading Hours
from 8:15 p.m. (previous day) to 9:25 a.m. and during Curb Trading
Hours from 4:15 p.m. to 5:00 p.m. See Cboe Rule 5.1(c) and (d). Cboe
also currently has a pending proposal to allow for the trading of
certain eligible multi-listed equity options during Global Trading
Hours. See Securities Exchange Act Release No. 104160 (September 30,
2025), 90 FR 48091 (October 3, 2025) (SR-CBOE-2025-079). Further,
Cboe C2 Exchange, Inc. (``C2'') currently allows for the trading of
certain index options during Global Trading Hours from 8:30 a.m. to
9:15 a.m. See C2 Rule 5.1(c).
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The Exchange believes there is investor demand for trading equity
options and index options outside of RTH. As noted above, many U.S.
equity exchanges allow for trading in securities before and after the
regular trading hours of 9:30 a.m. to 4:00 p.m., including in stocks
that comprise the Nasdaq-100 Index.\9\ It is common for investors to
engage in hedging and other investment strategies that involve index
options and some of the stocks that comprise the underlying index, as
well as investment strategies involving equity options and their
underlying securities. Currently, this investment activity on the
Exchange would be limited to Regular Trading Hours. Allowing certain
eligible index options and equity options to participate during
Extended Trading Hours would help align trading in such products to the
expanded trading that already occurs for the underlying securities, and
help meet investor demand to use these products outside of Regular
Trading Hours.
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\9\ As noted above, the proposed eligible index options for ETH
trading, NDX, NDXP, and XND options, are all based on the Nasdaq-100
Index.
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Proposal
To implement Extended Trading Hours, the Exchange proposes to adopt
new Options 3C (Extended Trading Hours). All rules applicable to
options during Regular Trading Hours will apply to the extent possible
to options during Extended Trading Hours, including, without
limitation, trading rules, listing rules, and business conduct rules.
All Members may (but are not required to) participate in ETH, and
Members do not need to separately apply to participate during ETH. The
Exchange is therefore adopting new Options 3C to address only the
operational and structural differences that are unique to ETH trading
while maintaining the applicability of the broader rulebook.
To reflect this concept, proposed Options 3C, Section 1(a) will
provide that Options 3C rules will apply only during Extended Trading
Hours. Options traded during Extended Trading Hours will be subject to
all other rules applicable to options on the Exchange, including,
without limitation, the trading rules, the listing rules, and business
conduct rules, unless the context otherwise requires or otherwise
provided in Options 3C.
Proposed Section 1(b) will provide that for purposes of Options 3C,
``Extended Trading Hours'' or ``ETH'' will mean the trading hours
outside of Regular Trading Hours of 9:30 a.m. ET to 4:00 p.m. (or 4:15
p.m. for certain products pursuant to Options 3, Section 1) and will
cover:
<bullet> the Early ETH Session, as described in Options 3C, Section
2; and
<bullet> the Extended Close, as described in Options 3C, Section 2.
Proposed Section 1(c) will provide that for purposes of Options 3C,
the ``Extended RTH Session'' will include RTH and the Extended Close.
Proposed Options 3C, Section 2(a) will provide that for option
classes designated by the Exchange as eligible for trading pursuant to
Options 3C, Section 3, the Early ETH Session will be conducted from
7:30 a.m. ET. to 9:25 a.m. ET on the business days specified in General
3, Rule 1030.\10\
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\10\ General 3, Rule 1030, which incorporates Nasdaq General 3,
Rule 1030 by reference, provides that the Exchange will be open for
the transaction of business days, and lists out the holidays on
which the Exchange will not be open for business.
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Proposed Section 2(b) will provide that for option classes
designated by the Exchange as eligible for trading pursuant to Section
3 below, trading will continue until 4:15 p.m. ET on the business days
specified in General 3, Rule 1030.
Proposed Section 2(c) will specify the interaction between the
different trading sessions on holidays and shortened trading days.
Proposed Section 2(c)(1) will provide that if there are no Regular
Trading Hours, there will be no Early ETH Session or Extended Close.
Proposed Section 2(c)(2) will provide
[[Page 16068]]
that on a trading day with shortened Regular Trading Hours (e.g., the
Exchange is open for a half day of regular trading between 9:30 a.m.
through 1 p.m.): (1) the Early ETH Session will occur prior to the
shortened Regular Trading Hours; and (2) the Extended Close will
commence at the end of the shortened Regular Trading Hours and continue
for 15 minutes (e.g., 1:00 p.m. to 1:15 p.m.).
The Exchange recognizes that the proposed Extended Trading Hours
are shorter than the extended trading hours for equities, which may
commence as early as 4:00 a.m. and conclude as late as 8:00 p.m.\11\
Since equity options generally will not trade unless the underlying
security also trades, any trading hours outside of RTH available for
equity options are limited to extended trading hours available for the
underlying equities. Although ETH for equity options could mirror the
extended trading hours available for the underlying equities, the
Exchange proposes to limit ETH trading, and establishes trading hours
for equity options that are notably shorter than the hours of extended
trading for equities. The Exchange believes that the shorter Extended
Trading Hours running from 7:30 a.m. to 9:25 a.m. and 4:00 p.m. to 4:15
p.m., rather than hours that align with the full extended trading hours
available to the underlying equities, is appropriate because of the
lack of industry experience with ETH for equity options that are
physically-settled. Limiting the ETH window of time for equity options
allows for a paced introduction of this new type of trading session for
equity options. The limited trading hours for ETH will allow the
Exchange to monitor and assess the development and functioning of ETH
markets for equity options. As it relates to index options, the
Exchange recognizes that the proposed Extended Trading Hours for NDX,
NDXP, and XND options are notably shorter than the extended trading
hours for certain index options on Cboe.\12\ However, the Exchange
believes that it is appropriate to align the extended trading hours for
both index and equity options on its market to help ensure an orderly
and measured implementation, as this is the first time the Exchange is
expanding its trading hours beyond RTH. Additionally, the Exchange
believes that the proposed timeframe for ETH for both index and equity
options can be supported by Market Makers,\13\ clearing firms, and
other market participants from a personnel coverage perspective.
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\11\ See supra note 8.
\12\ See supra note 8.
\13\ The term ``Market Makers'' refers to ``Competitive Market
Makers'' and ``Primary Market Makers'' collectively. See Options 1,
Section 1(a)(22).
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Extended Hours Trading will allow market participants to engage in
trading of designated index and equity options in conjunction with the
trading in the underlying securities during these hours. As it relates
to trading in multi-listed equity options during ETH, however, since
trading in such options is a new initiative, the Exchange proposes in
proposed Options 3C, Section 3(a) to limit the number of equity option
classes that may be designated for ETH at 100 option classes.\14\ The
limit is intended to allow the Exchange to monitor and assess the
development and functioning of ETH markets for equity options within a
limited group of equity options initially.
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\14\ As noted above, Cboe already allows for the trading of
certain index options outside of their regular trading hours today.
See supra note 8.
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In particular, proposed Section 3(a) will establish specific
eligibility criteria for an equity option class to meet in order to be
eligible for ETH trading, and will provide that the Exchange may
designate as eligible for trading during ETH up to 100 actively-traded
and multiply-listed equity option classes that satisfy the following
criteria:
<bullet> the option has an average daily volume of 150,000
contracts;
<bullet> the underlying equity to the option has a $50 billion
market capitalization; and
<bullet> the underlying equity to the option has an average daily
trading volume of 10 million shares.
The Exchange believes these criteria will help ensure equity
options designated for trading in ETH will have sufficient demand and
liquidity to support an ETH market. Additionally, this criteria may be
waived if, during the three days following an underlying security's
initial public offering (``IPO'') day, the underlying security has a
market capitalization of at least $3 billion based upon the offering
price of its IPO, in which case options on the underlying security may
be listed and traded in ETH starting on or after the second business
day following the IPO day. If in the case of an IPO, the Exchange
waives the criteria to designate an equity option class for ETH, such
option class will be included against the 100 option class limit in
proposed Section 3(a)(1). The Exchange believes that the requirements
established in proposed Section 3 will result in the eligibility of
equity option classes for ETH for option classes with the highest
anticipated demand.
Proposed Section 3(a)(3) will establish the process by which the
Exchange would review and determine eligibility for equity option
classes pursuant to proposed Section 3(a)(1). Specifically, the
Exchange will determine bi-annually the underlying equities that
satisfy the eligibility criteria in subparagraph (1) of Section 3(a) by
using trading statistics for the previous six-month period.\15\ The
Exchange may designate no more than 100 underlying equities that meet
the eligibility criteria in subparagraph (1) as eligible for trading
during ETH. If more than 100 underlying equities satisfy eligibility
criteria in subparagraph (1) above, the Exchange may select the top 100
equity options that have the highest average daily trading volume.
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\15\ The Exchange proposes to conduct the bi-annual review on
January 1 and July 1 of each year. As such, the six-month periods
will be from January to June, and from July to December each year.
The result of the bi-annual review will be announced through a
public alert to all Members, and any new equity options that qualify
would be permitted to trade during ETH beginning on February 1 and
August 1 of each year. If the Exchange initially begins to allow for
ETH trading on a different date (e.g., September 1), it would
initially allow for the trading of equity options during ETH that
qualified as of the last bi-annual review (e.g., the one conducted
on July 1).
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Proposed Section 3(a)(4) will provide that the Exchange may also
designate as eligible for trading during ETH any equity option that is
traded on another exchange during ETH. Any equity option designated by
the Exchange as eligible for ETH trading because the option is traded
by another exchange during ETH will not be included against the 100
option class limit in proposed Section 3(a)(1). The Exchange believes
that the exclusion from the 100 option class limit of such equity
options initially traded during ETH on another options exchange is
appropriate for competitive purposes since such listings can indicate
the continued expansion of equity options trading outside of RTH.
Additionally, this exclusion from the 100 option class limit is similar
in structure to the rules for Short Term Options Series, which allows
the Exchange to list additional option classes selected by other
exchanges under their short term options rules and such selections are
in addition to the 50 Short Term Option Series classes that the
Exchange may select.\16\
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\16\ See Supplementary Material .03(a) to Options 4, Section 5,
which incorporates Nasdaq ISE, LLC (``ISE'') Supplementary Material
.03(a) to Options 4, Section 5 by reference.
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Proposed Section 3(b)(1) will provide that the Exchange may
designate as eligible for trading during ETH the following index
options: NDX, NDXP, and XND. Proposed Section 3(b)(2) will
[[Page 16069]]
provide that if the Exchange designates a class of index options as
eligible for trading during ETH, Binary Options with the same
underlying index are also deemed eligible for trading during ETH.\17\
Proposed Section 3(b)(3) will provide that the Exchange will not report
a value of an index underlying an index option during ETH because the
value of the underlying index will not be recalculated during or at the
close of ETH.\18\ The closing value of the index from the previous
trading day will be available for Members that trade during ETH.
However, the Exchange does not believe it would be useful or efficient
to disseminate to Members the same value repeatedly at frequent
intervals, as it does during Regular Trading Hours (when the index
value is being updated).\19\
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\17\ See Securities Exchange Act Release No. 104966 (March 11,
2026), 91 FR 12652 (March 16, 2026) (SR-MRX-2026-05).
\18\ See Cboe Rule 5.1(c)(3) and (d)(3) for similar provisions.
\19\ ISE Options 4A, Section 3(d)(11), which the Exchange
incorporates by reference, currently provides that the underlying
index value for a broad-based index (e.g., Nasdaq-100 Index) will be
widely disseminated at least once every 15 seconds. This provision
is superseded with during ETH by proposed Options 3C, Section
3(b)(2), and thus no dissemination will occur during ETH.
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Proposed Section 3(c) and (d) will specify the eligible option
series that would be available during ETH and how expiration day
trading for those option series would be handled by the Exchange. In
particular, any series in eligible option classes that would be
available during the subsequent RTH would be available during the Early
ETH Session. Any series in eligible option classes that would be
available during the previous RTH would likewise be available during
the Extended Close, except for expiring index options. Further, a.m.-
settled index options will be available for trading through the
Extended Close on the business day prior to expiration, but will not be
available for trading during the Early ETH Session on their expiration
date. P.m.-settled index options will be available for trading through
Regular Trading Hours on their expiration date, but will not be
available for trading in the Extended Close on their expiration date.
Lastly, equity options will be available for trading through the
Extended Close on their expiration date.
Proposed Options 3C, Section 4(a) provides that the Exchange may
determine to make the order types and times-in-force (``TIFs'') in
Options 3, Section 7 available on a class or System \20\ basis during
ETH, except as otherwise specified herein. The Exchange notes that it
currently has the authority to make certain order types and TIFs
available on a class or System basis during RTH pursuant to Options 3,
Section 7, and therefore proposes to have similar authority with
respect to ETH.
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\20\ The term ``System'' means the electronic system operated by
the Exchange that receives and disseminates quotes, executes orders
and reports transactions. See Options 1, Section 1(a)(50).
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Proposed Section 4(b) provides that Members may designate orders
for participation in: (1) Extended RTH Session only, or (2) both the
Early ETH Session and Extended RTH Session. All quotes entered during
the Early ETH Session will be purged after the end of such session. As
discussed in detail below, this is to allow for the System to
transition over to Regular Trading Hours.
The Exchange expects reduced liquidity, higher volatility, and
wider spreads during ETH. Therefore, the Exchange proposes not to allow
Market Orders \21\ during ETH and such orders designated for
participation in both the Early ETH Session and the Extended RTH
Session will be rejected.\22\ The Exchange believes it is appropriate
to not allow Market Orders during ETH in order to protect customers
should wide price fluctuations occur due to the potential illiquid and
volatile nature of the market or other factors that could impact market
activity.\23\
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\21\ A Market Order is an order to buy or sell a stated number
of options contracts that is to be executed at the best price
obtainable when the order reaches the Exchange. Members can
designate that their Market Orders not executed after a pre-
established period of time, as established by the Exchange, will be
cancelled back to the Member, once an options series has opened for
trading. Market Orders on the order book would be immediately
cancelled if an options series is halted, provided the Member
designated the cancellation of Market Order. See Options 3, Section
7(a).
\22\ See proposed Options 3, Section 4(c).
\23\ Today, Cboe similarly restricts Market Orders outside of
their regular trading hours. See Cboe Rule 5.6(b).
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The Exchange also proposes to not allow Add Liquidity Orders \24\
during the Early ETH Session to align with current System functionality
where Add Liquidity Orders are not allowed to participate in the RTH
opening process. Otherwise, Add Liquidity Orders entered during the
Early ETH Session could persist into the next trading session and
participate in the RTH opening process if those orders do not execute
during the Early ETH Session. Accordingly, proposed Section 4(c) will
provide that Add Liquidity Orders designated for participation in both
the Early ETH Session and Extended RTH Session will be rejected.
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\24\ An Add Liquidity Order is a limit order that is to be
executed in whole or in part on the Exchange (i) only after being
displayed on the Exchange's limit order book; and (ii) without
routing any portion of the order to another market center. Members
may specify whether an Add Liquidity Order shall be cancelled or re-
priced to the minimum price variation above the national best bid
price (for sell orders) or below the national best offer price (for
buy orders) if, at the time of entry, the order (i) is executable on
the Exchange; or (ii) the order is not executable on the Exchange,
but would lock or cross the national best bid or offer. If at the
time of entry, an Add Liquidity Order would lock or cross one or
more non-displayed orders or quotes on the Exchange, the Add
Liquidity Order shall be cancelled or re-priced to the minimum price
variation above the best non-displayed bid price (for sell orders)
or below the best non-displayed offer price (for buy orders).
Notwithstanding the aforementioned, if an Add Liquidity Order would
not lock or cross an order or quote on the System but would lock or
cross the NBBO, the order will be handled pursuant to Options 3,
Section 5(d). An Add Liquidity Order will be ranked in the
Exchange's limit order book in accordance with Options 3, Section
10. Add Liquidity Orders may only be submitted when an options
series is open for trading. Add Liquidity Orders may only have a
time-in-force designation of Day. See Options 3, Section 7(n).
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The Exchange also proposes to eliminate the TIFs of Good-Till-
Canceled (``GTC'') and Good-Till-Date (``GTD'') from its rulebook to
avoid the operational complexity of having such orders persist between
trading sessions. Accordingly, the Exchange proposes to delete the GTC
and GTD rule text in Supplementary Material .02(b) and (c) of Options
3, Section 7 and in Options 3, Section 14(b)(11) and (12), and reserve
those rules. The Exchange also proposes to delete the sentence
referencing GTC and GTD orders in Options 3, Section 8(k). In addition,
because the Exchange incorporates by reference ISE Options 5 (Order
Protections and Locked and Crossed Markets rules) into its Options 5,
and ISE Options 5 references GTC and GTD orders therein, the Exchange
proposes to add a sentence at the end of its Options 5 providing that
notwithstanding the foregoing, all references to ``GTC'' and ``GTD'' in
Nasdaq ISE Options 5 will not be incorporated into this Nasdaq MRX
Options 5, as those times-in-force designations are not available on
Nasdaq MRX.
[[Page 16070]]
Proposed Section 4(d) will provide that orders are not routable
during ETH. As such, all orders during ETH will be required to be
entered as Do-Not-Route (``DNR'') orders and may be repriced pursuant
to Options 3, Section 5(d) to comply with the Options Order Protection
and Locked/Crossed Market Plan (``Linkage Plan'').\25\ Options 3,
Section 5(d) currently provides that an order would not be executed at
a price that trades through another market or displayed at a price that
would lock or cross another market and that an order that is designated
by a Member as non-routable would be re-priced in order to comply with
applicable trade-through and locked and crossed markets restrictions.
If, at the time of entry, an order that the entering party has elected
not to make eligible for routing would cause a locked or crossed market
violation or would cause a trade-through violation, it would be re-
priced to the current national best offer (for bids) or the current
national best bid (for offers) as non-displayed, and displayed at one
minimum price variance above (for offers) or below (for bids) the
national best price.
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\25\ The Linkage Plan requires U.S. options exchanges to
establish a framework for providing order protection and addressing
locked and crossed markets in eligible options classes. The Linkage
Plan is a national market system plan approved by the Commission
pursuant to Section 11A of the Act and Rule 608 thereunder. The full
text of the Linkage Plan is available at <a href="https://www.theocc.com/getcontentasset/7fc629d9-4e54-4b99-9f11-c0e4db1a2266/dfc3d011-8f63-43f6-9ed8-4b444333a1d0/options_order_protection_plan.pdf">https://www.theocc.com/getcontentasset/7fc629d9-4e54-4b99-9f11-c0e4db1a2266/dfc3d011-8f63-43f6-9ed8-4b444333a1d0/options_order_protection_plan.pdf</a>. All
operating U.S. options exchanges participate in the Linkage Plan. If
another U.S. options exchange lists any of the eligible option
classes outside of RTH, trading of such option classes on the
Exchange would comply with the Linkage Plan. As noted above, Cboe
currently has a pending proposal to list and trade eligible multi-
listed equity options outside of their regular trading hours. See
supra note 8.
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Proposed Options 3C, Section 5 will set forth the opening process
for the Early ETH Session. As proposed, the Exchange will use the same
opening process described in Options 3, Section 8 for Regular Trading
Hours, except everything will be pushed back by two hours for the Early
ETH Session opening process. Specifically, the opening process for the
Early ETH Session will be triggered by the first disseminated trade or
first disseminated quote on the primary market after 7:30 a.m. (versus
9:30 a.m. for the RTH opening). In addition, Market Maker Valid Width
Quotes \26\ and Opening Sweeps \27\ received starting at 7:25 a.m.
(versus 9:25 a.m. as currently provided for the RTH opening) will be
included in the Early ETH Session opening process. Orders designated
for both the Early ETH Session and Extended RTH Session, and entered at
any time before an eligible option series opens are included in the
Early ETH Session opening process. This is consistent with the current
RTH opening process mechanics in Options 3, Section 8(c), including
where Market Maker Valid Width Quotes and Opening Sweeps received
starting at 9:25 a.m. are included in the RTH opening process. However,
the Exchange also proposes to modify this RTH opening process time from
9:25 a.m. to 9:26 a.m. in order to provide the Exchange time to
transition between the Early ETH Session and Regular Trading Hours.
Because the Early ETH Session would last between 7:30 a.m. to 9:25
a.m., the Exchange would use the one-minute time period between the end
of the Early ETH Session at 9:25 a.m. and the time in which it would
begin to accept Market Maker interest for the RTH opening process at
9:26 a.m. to purge quotes from the Early ETH Session and prepare to
transition over to the next trading session.
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\26\ A ``Valid Width Quote'' is a two-sided electronic quotation
submitted by a Market Maker that meets the following requirements:
differentials shall be no more than $5, provided that, in the case
of equity options, the bid/ask differential stated above shall not
apply to in-the-money series where the market for the underlying
security is wider than the differential set forth above. The bid/ask
differentials for in-the-money options series may be as wide as the
quotation for the underlying security on the primary market, or its
decimal equivalent rounded down to the nearest minimum increment.
The Exchange may establish differences other than the above for one
or more series or classes of options. Such differences will be
posted by the Exchange on its website. See Options 3, Section
8(a)(8).
\27\ An Opening Sweep is a one-sided order entered by a Market
Maker through SQF for execution against eligible interest in the
System during the Opening Process. This order type is not subject to
any protections listed in Options 3, Section 15, except for
Automated Quotation Adjustments and Market Wide Risk Protection. The
Opening Sweep will only participate in the Opening Process pursuant
to Options 3, Section 8(b)(1) and will be cancelled upon the open if
not executed. See Options 3, Section 7(u).
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The Exchange also proposes to explicitly provide in Options 3C,
Section 5(d) that orders would not be routable during the Early ETH
Session opening process and that such orders would be required to be
entered as DNR orders, consistent with the proposal to not allow
routing during the remainder of the Early ETH Session. As such, an
order during the Early ETH Session opening process may similarly be
repriced pursuant to Options 3, Section 5(d) to comply with the Linkage
Plan.
Proposed Options 3C, Section 6 will set forth the trading halt
provisions for the Early ETH Session. The trading halt provisions
applicable to equity options and index options during RTH will
generally apply to those options during the Early ETH Session, except
limit-up limit-down trading pauses and market-wide circuit breakers
because those trading halts by their terms only apply during RTH.
Accordingly, the Exchange proposes that for equity options, the
Exchange will follow the trading halt and reopening halt procedures in
Options 3, Sections 9(a) \28\ and (b),\29\ for index options the
Exchange will follow the trading halt and reopening procedures in
Options 4A, Sections
[[Page 16071]]
11(c),\30\ (d),\31\ and (f).\32\ The Exchange also proposes that
notwithstanding the foregoing, the Exchange may also determine to
manually halt or resume trading during the Early ETH Session at times
other than prescribed under proposed Section 6 if it is determined to
be in the interests of a fair and orderly market and to protect
investors pursuant to Options 3, Section 9(a) for equity options and
Options 4A, Section 11(c) for index options. Proposed Section 6(d) will
provide that no Member will effect a trade in any option class in which
trading has been halted under the provisions of this Rule during the
time in which the halt remains in effect. The Exchange will nullify any
transaction that occurs: (1) during a trading halt in the affected
option on the Exchange; or (2) with respect to equity options, during a
regulatory halt as declared by the primary listing market for the
underlying security. This aligns with the Exchange's current halt
process in Supplementary Material .01 to Options 3, Section 9.\33\
---------------------------------------------------------------------------
\28\ An Exchange official designated by the Board may halt
trading in any stock option in the interests of a fair and orderly
market. The following are among the factors that may be considered
in determining whether the trading in a stock option should be
halted: (i) trading in the underlying security has been halted or
suspended in one or more of the markets trading the underlying
security, (ii) the opening of such underlying security has been
delayed because of unusual circumstances, (iii) other unusual
conditions or circumstances are present. In addition, a designated
Exchange official may halt trading (including a rotation) for a
class or classes of options contracts whenever there is a halt of
trading in an underlying security in one or more of the markets
trading the underlying security. In such event, without the need for
action by the Primary Market Maker, all trading in the effected
class or classes of options may be halted. The Exchange shall
disseminate through its trading facilities and over OPRA a symbol in
respect of such class or classes of options indicating that trading
has been halted, and a record of the time and duration of the halt
shall be made available to vendors. No Member or person associated
with a Member shall effect a trade on the Exchange in any options
class in which trading has been halted under the provisions of this
Rule during the time in which the halt remains in effect. During a
halt, the Exchange will maintain existing orders on the book (but
not existing quotes prior to the halt), accept orders and quotes,
and process cancels and modifications, except existing quotes are
cancelled. During a halt, existing auction orders and auction
responses, as well as Crossing Orders, are rejected. See Options 3,
Section 9(a).
\29\ Trading in a stock option that has been the subject of a
halt under paragraph (a)(1) above may be resumed upon the
determination by an Exchange official designated by the Board that
the conditions which led to the halt are no longer present or that
the interests of a fair and orderly market are best served by a
resumption of trading. See Options 3, Section 9(b).
\30\ Trading on the Exchange in any index option shall be halted
or suspended whenever trading in underlying securities whose
weighted value represents more than twenty percent (20%), in the
case of a broad based index, and ten percent (10%) for all other
indices, of the index value is halted or suspended. An Exchange
official designated by the Board also may halt trading in an index
option when, in his or her judgment, such action is appropriate in
the interests of a fair and orderly market and to protect investors.
Among the facts that may be considered are the following: (1)
whether all trading has been halted or suspended in the market that
is the primary market for a plurality of the underlying stocks in
the underlying foreign currency market; (2) whether the current
calculation of the index derived from the current market prices of
the stocks is not available the current prices of the underlying
foreign currency is not available; (3) the extent to which the
rotation has been completed or other factors regarding the status of
the rotation; and (4) other unusual conditions or circumstances
detrimental to the maintenance of a fair and orderly market are
present, including, but not limited to, the activation of price
limits on futures exchanges. See Options 4A, Section 11(c).
\31\ Trading in options of a class or series that has been the
subject of a halt or suspension by the Exchange may resume if an
Exchange official designated by the Board determines that the
interests of a fair and orderly market are served by a resumption of
trading. Among the factors to be considered in making this
determination are whether the conditions that led to the halt or
suspension are no longer present, and the extent to which trading is
occurring in stocks or currencies underlying an index. Upon
reopening, a rotation shall be held in each class of index options
unless an Exchange official designated by the Board concludes that a
different method of reopening is appropriate under the
circumstances, including but not limited to, no rotation, an
abbreviated rotation or any other variation in the manner of the
rotation. See Options 4A, Section 11(d).
\32\ With respect to foreign indexes, when the hours of trading
of the underlying primary securities market for an index option do
not overlap or coincide with those of the Exchange, all of the
provisions as described in paragraphs (c), (d) and (e) of Options
4A, Section 11 shall not apply except for (c)(4). See Options 4A,
Section 11(f).
\33\ See also Cboe Rule 5.20(c) for similar provisions during
their global trading hours.
---------------------------------------------------------------------------
Proposed Options 3C, Section 7 will set forth the provisions
applicable to Market Makers during ETH. Proposed Section 7(a) will
provide that the same Market Maker appointments will apply across RTH
and ETH. Accordingly, if an option class is designated by the Exchange
as eligible for trading during ETH pursuant to proposed Section 3, the
Market Maker appointed to that option class during RTH pursuant to
Options 2, Section 3 would automatically receive the appointment in
such option class during ETH. Proposed Section 7(b) will provide that
during any given Early ETH Session, a Market Maker is not required to
enter quotations in the option class to which it is appointed. If,
however, a Market Maker chooses to enter quotations in its assigned
option class during the Early ETH Session, it will be subject to the
continuous quoting obligations in Options 2, Section 5(e), which will
apply across trading sessions and will be calculated pursuant to
subparagraph (1) below. Given that participation in ETH trading is
optional for all Members (including Market Makers) and Market Makers
may not choose to participate, the proposal ensures that quoting
obligations only apply during trading sessions in which the Market
Maker participates.
Proposed subparagraph (1) of Section 7(b) will provide that if a
Market Maker chooses to enter quotations in its assigned option class
during the Early ETH Session, the Exchange will calculate the
continuous quoting obligations in Options 2, Section (5)(e)(1)-(3) by
(i) taking the total number of seconds the Member disseminates quotes
in each assigned options series, excluding, for Competitive Market
Makers and Preferred CMMs, Quarterly Options Series, any Adjusted
Options Series, and any option series with an expiration of nine months
or greater for options on equities and ETFs or with an expiration of
twelve months or greater for index options; and (ii) dividing that time
by the eligible total number of seconds each assigned option series in
the options class is open for trading across all trading sessions.
Compliance with this requirement is determined by reviewing the
aggregate of quoting in assigned options series for the Member across
all trading sessions. The Exchange notes that this is substantially
similar to how it calculates the continuous quoting obligations today
and as set forth in Options 2, Section 5(e)(4), except the Exchange is
making clear for ETH that if a Market Maker chooses to quote in ETH,
their ETH quoting time is aggregated with their RTH quoting time (i.e.,
across all trading sessions) for purposes of determining compliance. In
other words, the Exchange is modifying the denominator in the
calculation proposed in subparagraph (1) to encompass all trading
sessions.
Proposed subparagraph (2) of Section 7(b) will provide that a
Market Maker that does not submit any quotes in their appointed option
class during the Early ETH Session will not be subject to the
continuous quoting obligations in Options 3, Section 5(e) for that
class during the Early ETH Session. Notwithstanding the foregoing,
nothing in proposed Options 3C, Section 7(b) relieves the Market Maker
of its continuous quoting obligations during the Regular Trading
Session.
Proposed Section 3C, Section 8 will provide that no Market Maker
shall effect any transaction during ETH unless one or more effective
letter(s) of guarantee has been issued by a Clearing Member \34\ and
filed with the Exchange accepting financial responsibility for all
transactions made by the Market Maker pursuant to Options 6, Section
4.\35\
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\34\ The term ``Clearing Member'' means a Member that is self-
clearing or an Electronic Access Member that clears Exchange
Transactions for other Members of the Exchange. See General 1,
Section 1(a)(4).
\35\ Options 6, Section 4 provides that no Market Maker shall
make any transactions on the Exchange unless a Letter of Guarantee
has been issued for such Member by a Clearing Member and filed with
the Exchange, and unless such Letter of Guarantee has not been
revoked pursuant to paragraph (c) of this Rule. A Letter of
Guarantee shall provide that the issuing Clearing Member accepts
financial responsibilities for all Exchange Transactions made by the
guaranteed Member. As set forth in General 1, Section 1(a)(9), the
term ``Exchange Transaction'' means a transaction executed on or
through the facilities of the Exchange.
---------------------------------------------------------------------------
Proposed Options 3C, Section 9 will require Members to make certain
disclosures to customers regarding material trading risks that exist
during Extended Trading Hours. The Exchange expects overall lower
levels of trading during ETH compared to RTH. While trading processes
during ETH will be substantially similar to trading processes during
RTH (as discussed above), the Exchange believes it is important for
investors, particularly public customers, to be aware of any
differences and risks that may result from lower trading levels and
thus will require these disclosures. Proposed Section 9(a) will provide
that no Member may accept an order from a customer for execution during
Extended
[[Page 16072]]
Trading Hours without disclosing to that customer that trading during
Extended Trading Hours involves material trading risks, including the
possibility of lower liquidity, high volatility, changing prices, an
exaggerated effect from news announcements, wider spreads, the absence
of an updated underlying index or portfolio value or intraday
indicative value and lack of regular trading in the securities
underlying the index or portfolio and any other relevant risk. The
proposed rule provides an example of these disclosures in paragraphs
(1)-(6). The Exchange believes that requiring Members to disclose these
risks to non-Member customers will facilitate informed participation in
Extended Trading Hours.\36\
---------------------------------------------------------------------------
\36\ See Cboe 9.20 for materially identical disclosure
requirements during their global trading hours.
---------------------------------------------------------------------------
As discussed above, the differences in the Rules between the
trading process during RTH and ETH is that certain order types and
instructions like routing will not be available during ETH, no values
for indexes underlying index options will be disseminated during ETH,
and Members that accept orders from customers during ETH will be
required to make certain disclosures to those customers. The
differences described above are consistent with the Exchange's goal to
permit ETH trading for those Members that choose to do so without
imposing additional burdens on those that do not. The Exchange also
notes the following in connection with this goal:
<bullet> The Exchange will not require any Member to participate
during ETH. Trading during ETH will be optional.
<bullet> The Exchange will minimize Members' preparation efforts to
the greatest extent possible by allowing Members to trade during ETH
with the same ports, data feeds, that they use during RTH.
<bullet> The same opening process (with the small change discussed
above to move the RTH opening process time from 9:25 a.m. to 9:26 a.m.)
will be used to open each trading session.
<bullet> Order processing will operate in the same manner during
ETH as it does for RTH. There will be no changes to the ranking,
display, or allocation algorithm rules.
<bullet> There will be no changes to the processes for clearing,
settlement, exercise, and expiration.\37\
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\37\ The Exchange has held discussions with the Options Clearing
Corporation, which is responsible for clearing and settlement of all
listed options transactions and has informed the Exchange that it
will be able to clear and settle all transactions that occur on the
Exchange and handle exercises of options during ETH.
---------------------------------------------------------------------------
<bullet> The Exchange will report the Exchange best bid and offer
and executed trades to the Options Price Reporting Authority (``OPRA'')
during ETH in the same manner they are reporting during RTH. Exchange
proprietary data feeds will also be disseminated during ETH using the
same formats and delivery mechanisms with which the Exchange
disseminates during RTH. Use of these proprietary data feeds will be
optional (as they are during RTH).
<bullet> The Exchange will perform all necessary surveillance
coverage during ETH.
<bullet> The Exchange will process all obvious error breaks during
ETH in the same manner as it does during RTH and will have personnel
available to do so.
<bullet> The Exchange will disseminate last sale and quotation
information during ETH through OPRA pursuant to the Plan for Reporting
of Consolidated Options Last Sale Reports and Quotation Information
(``OPRA Plan''), as it does during RTH.\38\
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\38\ The OPRA Plan provides for the collection and dissemination
of last sale and quotation information on options that are trading
on the participant exchanges. The OPRA Plan is a national market
system plan approved by the Commission pursuant to Section 11A of
the Act and Rule 608 thereunder. See Securities Exchange Act Release
No. 17638 (March 18, 1981). The full text of the OPRA Plan is
available at <a href="http://www.opraplan.com">www.opraplan.com</a>. All operating U.S. options exchanges
participate in the OPRA Plan.
---------------------------------------------------------------------------
The Exchange understands that systems and other issues may arise
and is committed to resolving those issues as quickly as possible,
including during ETH. Thus, the Exchange will have appropriate staff
available as necessary during ETH to handle any technical and support
issues that may arise during those hours. Additionally, the Exchange
will have personnel available to address any trading issues that may
arise during ETH. The Exchange is also committed to fulfilling its
obligations as a self-regulatory organization at all times, including
during ETH, and will have appropriately trained, qualified regulatory
staff in place during ETH to the extent it deems necessary to satisfy
those obligations. The Exchange believes its surveillance procedures
are adequate to properly monitor trading of eligible equity and index
options during ETH.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\39\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\40\ in particular, in that it is designed to
promote just and equitable principles of trade, 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.
---------------------------------------------------------------------------
\39\ 15 U.S.C. 78f(b).
\40\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------
In particular, the proposed rule change to adopt Extended Trading
Hours will remove impediments to and perfect the mechanism of a free
and open market and a national market system. Extended Trading Hours is
a competitive initiative designed to improve the Exchange's marketplace
for the benefit of investors. The proposed rule change provides a new
investment opportunity within the options trading industry that more
closely aligns the Exchange's trading hours with extended trading hours
of stock exchanges and other options exchanges.\41\ The Exchange
believes that the proposed rule change will enhance competition by
providing a service to investors that most other options exchanges are
currently not providing. The Exchange believes the competition among
exchanges ultimately benefits the entire marketplace. Given the robust
competition among options exchanges, innovative trading mechanisms are
consistent with the above-mentioned goals of the Act.
---------------------------------------------------------------------------
\41\ See supra note 8.
---------------------------------------------------------------------------
The proposed rule change also provides a mechanism for the Exchange
to more effectively compete with exchanges located outside the United
States. Global markets have become increasingly interdependent and
linked, both psychologically and through improved communications
technology. This has been accompanied by an increased desire among
investors to have access to U.S.-listed exchange products outside of
Regular Trading Hours, and the Exchange believes this desire extends to
index and equity options. The Exchange believes that its proposal is
reasonably designed to provide an appropriate mechanism for trading
outside RTH while providing for appropriate Exchange oversight and
surveillance pursuant to the Act.
As noted above, the Commission has authorized stock exchanges and a
small number of options exchanges to be open for trading outside of RTH
pursuant to the Act.\42\ Thus, the proposed rule change to adopt ETH is
not novel or unique. As the proposed rule change is a new Exchange
initiative, the Exchange believes it is reasonable to trade a limited
number of index and equity option classes for which demand is
anticipated to be the highest during ETH
[[Page 16073]]
upon implementation of ETH trading in those options.
---------------------------------------------------------------------------
\42\ See supra note 8.
---------------------------------------------------------------------------
The vast majority of the Exchange's rules applicable to options,
including, without limitation, trading rules, listing rules, and
business conduct rules, will apply during ETH in the same manner as
during RTH (other than as specified above). These rules have all been
previously filed with the Commission and established as being
consistent with the goals of the Act. Examples of rules that will apply
equally during ETH include rules that protect public customers, impose
best execution requirements on Members, and prohibit acts and practices
that are inconsistent with just and equitable principles of trade as
well as fraudulent and manipulative practices. The proposed rule change
also provides opportunities for price improvement during ETH and
applies the same allocation and priority rules that are available on
the Exchange during RTH. The Exchange therefore believes that the rules
that will apply during ETH will continue to promote just and equitable
principles of trade and prevent fraudulent and manipulative acts.
The proposed rule change clearly identifies the ways in which
trading during ETH will differ from trading during RTH (such as
identifying order types and instructions that will not be available
during ETH) in new Options 3C. This ensures that investors would be
aware of any differences among trading sessions. The Exchange believes
that the differences are consistent with the expected differences in
liquidity, participation, and trading activity between RTH and ETH.
Additionally, to further protect investors from any additional risks
related to trading during ETH, the proposed rule change requires that
disclosures be made to customers describing these potential risks.
Consistent with the goals of investor protection, the Exchange will not
allow Market Orders during ETH due to the expected increased volatility
and decreased liquidity during those hours.
Additionally, the Exchange believes that the proposed rule change
will foster cooperation and coordination with persons engaged in
regulating, clearing, settling, processing information with respect to,
and facilitating transactions in securities, as the Exchange will
ensure that adequate staffing is available during ETH to provide
appropriate trading support during those hours, as well as Exchange
personnel to make any necessary determinations under the rules during
ETH (such as trading halts and trade nullification for obvious errors).
The Exchange is also committed to fulfilling its obligations as a self-
regulatory organization at all times, including during ETH. The
Exchange believes its surveillance procedures are adequate to properly
monitor trading in eligible index and equity options during ETH.
Clearing and settlement processes will be the same for ETH as they are
for RTH transactions.
The proposed rule change further removes impediments to a free and
open market and does not unfairly discriminate among market
participants, as all Members with access to the Exchange may trade
during ETH using the same ports and data feeds they use during RTH,
minimizing any preparation efforts necessary to participate during ETH.
Members will not be required to trade during ETH.
As discussed above, Market Makers will be subject to the same
continuous quoting obligations in Options 2, Section 5(e) during the
Early ETH Session with respect to their option class appointments as
they are during the Extended RTH Session, provided that these
obligations would be triggered during the Early ETH Session if the
Market Maker chooses to enter quotes during that trading session. In
such cases, the Market Maker's quoting activity would be aggregated for
all trading sessions to determine whether the Market Maker met its
continuous quoting obligations. The Exchange believes that these
provisions reflect different liquidity and participation dynamics of
the Early ETH Session and the Extended RTH Session. The Exchange
expects lower levels of trading during the Early ETH Session compared
to the Extended RTH Session, which could result in potentially lower
liquidity (including fewer Market Makers quoting), higher volatility,
and wider spreads. Accordingly, the Exchange is structuring Member
(including Market Maker) participation in the Early ETH Session as
voluntary to provide them with the choice to engage in that market. If
the Exchange required Market Makers to meet continuous quoting
obligations during the Early ETH Session even though a Market Maker
chose not to participate in that session, the Market Maker could be
penalized for choosing not to quote during the Early ETH Session while
nonetheless meeting their continuous quoting obligations during the
Extended RTH Session. The Exchange believes that the proposed trading
session-based calculation promotes clarity and would encourage Market
Maker participation in the Early ETH Session without inadvertently
penalizing them if they choose not to participate in the Early ETH
Session for that day.
The proposed rule change is also consistent with Section 11A of the
Act and Regulation NMS thereunder, because it provides for the
dissemination of transaction and quotation information during ETH
through OPRA, pursuant to the OPRA Plan, which the Commission approved
and indicated as consistent with the Act. The Exchange will also comply
with the Linkage Plan for all eligible option classes that list and
trade on another U.S. options exchange outside of RTH.\43\
---------------------------------------------------------------------------
\43\ See supra note 25.
---------------------------------------------------------------------------
The proposed rule change will remove impediments to and perfect the
mechanism of a free and open market and a national market system
because, as noted above, other options exchanges currently offer
trading in certain index options outside of RTH.\44\ The Exchange
believes that the proposed rule change will also help further
competition by providing market participants by providing market
participants with yet another investment option.
---------------------------------------------------------------------------
\44\ See supra note 8.
---------------------------------------------------------------------------
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 not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
that the proposed rule change will impose an undue burden on intra-
market competition because all Members will be able, but not required,
to participate during Extended Trading Hours. Participation in ETH will
be voluntary and within the discretion of Members. As discussed above,
the Exchange is proposing to impose the same percentage requirements
with respect to the continuous quoting obligations for Market Makers,
but would impose these obligations during the Early ETH Session if the
Market Maker chooses to enter quotes during that session. The Exchange
would then calculate these obligations together for the Early ETH
Session and the Extended RTH Session. The Exchange believes this is
appropriate given that a Market Maker's continuous quoting obligations
would be triggered in the Early ETH Session if they decided to begin
quoting in their appointed option class. The Exchange believes that its
proposal promotes clarity and would encourage Market Maker
participation during the Early ETH Session without inadvertently
penalizing them if they choose not to participate in the Early ETH
Session for that day.
[[Page 16074]]
The Exchange does not believe the proposed rule change to adopt
Extended Trading Hours will impose an undue burden on inter-market
competition because the proposed rule change is a competitive
initiative that will benefit the marketplace and investors. The
Exchange believes that the proposed rule change enhances competition by
providing a service to investors that only a small number of options
exchanges currently provide.\45\ Additionally, all options exchanges
are free to compete in the same manner. The Exchange further believes
that the same level of competition among options exchanges will
continue during Regular Trading Hours. The Exchange also believes that
the proposed rule change could increase its competitive position
outside of the United States by providing investors with an additional
investment vehicle with respect to their global trading strategies
during times that correspond with parts of regular trading hours
outside of the United States.
---------------------------------------------------------------------------
\45\ See supra note 8.
---------------------------------------------------------------------------
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
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#2153544d440c424e4c4c444f5552615244420f464e57"><span class="__cf_email__" data-cfemail="9be9eef7feb6f8f4f6f6fef5efe8dbe8fef8b5fcf4ed">[email protected]</span></a>. Please include
file number
SR-MRX-2026-11 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-MRX-2026-11. 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-MRX-2026-11 and should be submitted on
or before April 21, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\46\
---------------------------------------------------------------------------
\46\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-06153 Filed 3-30-26; 8:45 am]
BILLING CODE 8011-01-P
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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.