Notice2026-06567
Self-Regulatory Organizations; NYSE American LLC; Order Approving a Proposed Rule Change To Amend Exchange Rule 915
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
April 6, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 65 (Monday, April 6, 2026)</title>
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[Federal Register Volume 91, Number 65 (Monday, April 6, 2026)]
[Notices]
[Pages 17318-17320]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-06567]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105133; File No. SR-NYSEAMER-2026-11]
Self-Regulatory Organizations; NYSE American LLC; Order Approving
a Proposed Rule Change To Amend Exchange Rule 915
April 1, 2026.
I. Introduction
On February 6, 2026, NYSE American LLC (the ``Exchange'' or ``NYSE
American'') filed with the Securities and Exchange Commission
(``Commission''), pursuant to Section 19(b)(1) of the Securities
Exchange Act of 1934 (``Act'' or ``Exchange Act'') \1\ and Rule 19b-4
thereunder,\2\ a proposed rule change to adopt listing criteria for
options on Commodity-Based Trusts that hold multiple crypto assets. The
proposed rule change was published for comment in the Federal Register
on February 19, 2026.\3\ The Commission received no comments regarding
the proposed rule change. This order approves the proposed rule change.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Securities Exchange Act Release No. 104844 (Feb. 13,
2026), 91 FR 8405 (``Notice'').
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II. Description of the Proposed Rule Change
Currently, Exchange Rule 915, Commentary .06(v) allows the Exchange
to list options on shares that represent interests in a Commodity-Based
Trust that meets the generic criteria of NYSE Arca Rule 8.201-E
(Generic), except that the Commodity-Based Trust holds a single crypto
asset, as defined in Exchange Rule 915, Commentary .06(c), and provided
that (A) the global supply of the crypto asset held by the Commodity-
Based Trust has an average daily market value of at least $700 million
over the last 12 months; and (B) the crypto asset held by the
Commodity-Based Trust underlies a derivatives contract that trades on a
market with which the Exchange has a comprehensive surveillance sharing
agreement, whether directly or through common membership in the
Intermarket Surveillance Group (``ISG'').\4\ As described more fully in
the Notice,\5\ the Exchange proposes to amend Exchange Rule 915,
Commentary .06(v) to allow the Exchange to list and trade options on a
Commodity-Based Trust that holds multiple crypto assets. The proposal
would allow the Exchange to list and trade these options without
additional approval from the Commission.\6\ Under the proposal, each
crypto asset that the Commodity-Based Trust holds must meet the
criteria in Exchange Rule 915, Commentary .06(c).\7\ Accordingly, each
of the Commodity-Based Trust's crypto assets must: (A) have an average
daily market value of at least $700 million over the last 12 months;
and (B) underlie a derivatives contract that trades on a market with
which the Exchange has a comprehensive surveillance sharing agreement,
whether directly or through common membership in ISG.\8\ The proposed
Commodity-Based Trust share options also must satisfy the Exchange's
initial and continued listing standards applicable to all options on
exchange-traded funds (``ETFs'').\9\ Exchange Rule 915, Commentary .06
requires the shares of an ETF underlying listed options to trade on a
national securities exchange and to be an ``NMS stock,'' as defined in
Rule 600 of Regulation NMS under the Exchange Act. In addition,
Exchange Rule 915, Commentary .06 requires the shares of an ETF to meet
the listing criteria in Exchange Rule 915(a) and (b) and Commentary .01
to Rule 915 \10\ or Exchange Rule 915, Commentary .06(a)(ii).\11\
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\4\ See Exchange Rule 915, Commentary .06(c). Exchange Rule 915,
Commentary .06(c) defines the term ``crypto asset'' to mean ``an
asset that is generated, issued and/or transferred using a
blockchain or similar distributive ledger technology network,
including but not limited to, assets known as `tokens,' `digital
assets,' `virtual currencies,' and `coins' and that relies on
cryptographic protocols.''
\5\ See supra note 3.
\6\ See Notice, 91 FR 8047.
\7\ See proposed Exchange Rule 915, Commentary .06(c).
\8\ See proposed Exchange Rule 915, Commentary .06(c). The
Exchange states that the market value for each crypto asset that a
Commodity-Based Trust holds will be calculated by taking the total
global supply of the crypto asset multiplied by the token price of
that asset. The Exchange states that the total supply of a crypto
asset includes all crypto assets currently issued and does not
include unissued crypto assets. See Notice, 91 FR at 8046.
\9\ See Notice, 91 FR 8048. In its proposal, the Exchange refers
to Commodity-Based Trust Shares as ETFs. See id. at 8047, 8048. The
Exchange's rules use the term ``exchange-traded fund'' to refer to
several types of investment products, including Commodity-Based
Trusts. See Exchange Rule 915, Commentary .06.
\10\ See Notice, 91 FR 8046. Exchange Rule 915(a) states that
underlying securities in respect of which put or call option
contracts are approved for listing and trading on the Exchange must
meet the following criteria: (1) the security must be duly
registered and be an ``NMS stock'' as defined in Rule 600 of
Regulation NMS under the Securities Exchange Act of 1934; and (2)
the security shall be characterized by a substantial number of
outstanding shares which are widely held and actively traded.
Exchange Rule 915(b) states, among other things, that, absent
exceptional circumstances, at the time the Exchange selects an
underlying security for Exchange options transactions, the following
guidelines with respect to the issuer shall be met: (1) There are a
minimum of 7,000,000 shares of the underlying security which are
owned by persons other than those required to report their security
holdings under Section 16(a) of the Securities Exchange Act of 1934;
(2) There are a minimum of 2,000 holders of the underlying security;
(3) Trading volume (in all markets in which the underlying security
is traded) has been at least 2,400,000 shares in the preceding
twelve months; (4) (a) If the underlying security is a ``covered
security'' as defined under Section 18(b)(1)(A) of the Securities
Act of 1933: (i) the market price per share of the underlying
security has been at least $3.00 for the previous three consecutive
business days preceding the date on which the Exchange submits a
certificate to The Options Clearing Corporation for listing and
trading, as measured by the closing price reported in the primary
market in which the underlying security is traded; however, (ii) the
requirements set forth in (4)(a)(i) will be waived during the three
days following its initial public offering day for an underlying
security having a market capitalization of at least $3 billion based
upon the offering price of its initial public offering, and may be
listed and traded starting on or after the second business day
following the initial public offering day; or (b) If the underlying
security is not a ``covered security,'' the market price per share
of the underlying security has been at least $7.50 for the majority
of business days during the three calendar months preceding the date
of selection, as measured by the lowest closing price reported in
any market in which the underlying security traded on each of the
subject days; (5) the issuer is in compliance with any applicable
requirements of the Securities Exchange Act of 1934.
\11\ Exchange Rule 915, Commentary .06(a)(ii) states that the
Exchange-Traded Fund Shares must be available for creation or
redemption each business day in cash or in kind from or through the
issuing trust, investment company, commodity pool or other issuer at
a price related to the net asset value. In addition, the issuing
trust, investment company, commodity pool or other issuer is
obligated to issue Fund Shares in a specified aggregate number even
though some or all of the investment assets needed to be deposited
have not been received by the issuing trust, investment company,
commodity pool, or other issuer, provided the authorized creation
participant has undertaken to deliver the investment assets as soon
as possible and such undertaking has been secured by the delivery
and maintenance of collateral consisting of cash or cash equivalents
satisfactory to the issuer of Fund Shares which underlie the option
as described in the Fund Shares' prospectus.
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The continued listing criteria in proposed Exchange Rule 916,
Commentary .07(3) will allow the Exchange to suspend opening
transactions in options on Commodity-Based Trust shares if any crypto
asset held by the Commodity-Based Trust (A) no longer has an average
daily market value of at least $700 million over the last 12 months, as
determined by the Exchange on a monthly basis; or (B) no longer
underlies a derivatives contract that trades on a market with which the
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Exchange has a comprehensive surveillance sharing agreement, whether
directly or through common membership in ISG. The Exchange states that
requiring the average daily market value criterion to be met on a
monthly basis is reasonable given that the Exchange believes that it is
unlikely that a crypto asset with an average daily market value of at
least $700 million over the previous twelve months would fail to meet
that standard as a result of trading over a relatively short period of
time.\12\
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\12\ See Notice, 91 FR 8046. For example, the Exchange states
that a crypto asset with market capitalization of $500 million for
15 days in a 20-day trading month could lose up to 88% of its value
and continue to meet the criteria. See id.
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Options on Commodity-Based Trust shares also will be subject to the
continued listing standards in Exchange Rule 916, Commentary .07.\13\
Under Exchange Rule 916, Commentary .07, shares of an ETF approved for
options trading would not meet the requirements for continued approval
if the shares were delisted from trading as provided in Exchange Rule
916, Commentary .01(5) because the underlying security was no longer an
NMS stock, as defined in Rule 600 of Regulation NMS under the Exchange
Act, or trading in the shares is halted or suspended from trading in
their primary market.\14\ Further, Exchange Rule 916, Commentary 07(4)
(renumbered as Exchange Rule 916, Commentary .07(5)) would allow the
Exchange to consider suspending opening transactions in options on
Commodity-Based Trust shares if the Exchange believes that further
dealing in the options on the Exchange is inadvisable.\15\
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\13\ See id.
\14\ See Exchange Rule 916, Commentary .07. See also Notice, 91
FR at 8046.
\15\ See Notice, 91 FR at 8047.
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The Exchange states that the proposed options on Commodity-Based
Trust shares would trade in the same manner as other ETF options on the
Exchange and will be subject to Exchange rules that currently apply to
the listing and trading of ETF options, including Exchange rules
governing, for example, expirations, exercise prices, minimum
increments, position and exercise limits, margin requirements, customer
accounts, and trading halt procedures.\16\ The Exchange states that
position and exercise limits for options on Commodity-Based Trust
shares will be determined pursuant to Exchange Rules 904 and 905.\17\
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\16\ See id. at 8048.
\17\ See id. at 8047.
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The Exchange represents that the same surveillance procedures
applicable to all ETF options currently listed and traded on the
Exchange will apply to the trading of options on Commodity-Based Trust
shares that are approved subject to proposed Exchange Rule 915,
Commentary .06(v).\18\ The Exchange states that its existing
surveillance and reporting safeguards are designed to deter and detect
possible manipulative behavior which might potentially arise from
listing and trading options on Commodity-Based Trust shares that are
approved subject to proposed Exchange Rule 915, Commentary .06(v).\19\
The Exchange states that it may obtain information from designated
contract markets that are members of the ISG related to a financial
instrument that is based, in whole or in part, upon an interest in or
performance of a crypto asset, as applicable.\20\ In addition, the
Exchange states that it currently lists options that would qualify for
listing as on option on a Commodity-Based Trust under proposed Exchange
Rule 915, Commentary .06(v).\21\
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\18\ See id.
\19\ See id.
\20\ See id.
\21\ See id. at 8049. The Exchange states that it currently
lists options on shares of the following funds: the iShares Bitcoin
Trust, the Fidelity Wise Origin Bitcoin Fund, the ARK21 Shares
Bitcoin ETF, the Grayscale Bitcoin Trust (BTC), the Grayscale
Bitcoin Mini Trust BTC, and the Bitwise Bitcoin ETF. See Notice, 91
FR at 8049, footnote 30.
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The Exchange states that it believes that both the Exchange and the
Options Price Reporting Authority (``OPRA'') have the necessary systems
capacity to handle the additional traffic associated with the listing
of the proposed options on the Commodity-Based Trust shares.\22\
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\22\ See id. at 8047.
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III. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
change is consistent with the requirements of the Act and the rules and
regulations thereunder applicable to a national securities
exchange.\23\ Specifically, the Commission finds that the proposed rule
change is consistent with Section 6(b)(5) of the Act,\24\ which
requires, among other things, that the rules of a national securities
exchange be designed to prevent fraudulent and manipulative acts and
practices, to remove impediments to and perfect the mechanism of a free
and open market, and, in general, to protect investors and the public
interest.
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\23\ In approving this proposed rule change, the Commission has
considered the proposed rule's impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\24\ 15 U.S.C. 78f(b)(5).
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The Exchange proposes to amend Exchange Rule 915, Commentary .06(v)
to permit the Exchange to list options on shares of a Commodity-Based
Trust that holds multiple crypto assets, provided that the Commodity-
Based Trust meets certain requirements, as described above. The
proposal will allow the Exchange to list options on shares of these
Commodity-Based Trusts without further approval from the Commission,
thereby permitting the Exchange to list these options soon after NYSE
Arca lists the underlying Commodity-Based Trust shares. Permitting the
listing and trading of these options on the Exchange will provide
investors with an additional vehicle for gaining and hedging exposure
to the underlying Commodity-Based Trust shares. The Commission recently
approved a Nasdaq ISE, LLC proposal to establish listing standards for
options on shares of Commodity-Based Trusts that hold multiple crypto
assets.\25\
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\25\ See Securities Exchange Act Release No. 105072 (Mar. 24,
2026), 91 FR 14894 (Mar. 27, 2026).
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[[Page 17320]]
Options on shares of Commodity-Based Trusts that hold multiple
crypto assets will be subject to the same initial and continued listing
requirements for options on Commodity-Based Trusts that hold a single
crypto asset except that each crypto asset that a Commodity-Based Trust
holds must (A) have an average daily market value of at least $700
million over the last 12 months; and (B) underlie a derivatives
contract that trades on a market with which the Exchange has a
comprehensive surveillance sharing agreement, whether directly or
through common membership in ISG. The requirements in proposed Exchange
Rule 915, Commentary .06(c) are designed to help ensure that each of
the crypto assets that a Commodity-Based Trust holds is sufficiently
liquid that the creation and redemption process for shares of the
Commodity-Based Trust will operate without disruption and that
Commodity-Based Trust shares will be available to options market makers
and other market participants that may use Commodity-Based Trust shares
to hedge their positions. The Exchange will consider suspending opening
transactions in Commodity-Based Trust share options if the requirements
in proposed Exchange Rule 915, Commentary .06(c) are no longer
satisfied.\26\
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\26\ See proposed Exchange Rule 916, Commentary .07(3).
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The Exchange represents that the same surveillance procedures
applicable to ETF options currently listed and traded on the Exchange
will apply to the trading of options on Commodity-Based Trust
shares.\27\ The Exchange states that its existing surveillance and
reporting safeguards are designed to deter and detect possible
manipulative behavior that might arise from listing and trading options
on ETFs, including the listing of options on Commodity-Based Trust
shares.\28\ As discussed above, each crypto asset held by a Commodity-
Based Trust must underlie a derivatives contract that trades on a
market with which the Exchange has a comprehensive surveillance sharing
agreement, whether directly or through common membership in ISG.\29\
This requirement, in addition to the Exchange's existing surveillance
procedures, should assist the Exchange in investigating suspected
manipulations or other trading abuses in Commodity-Based Trust share
options.
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\27\ See Notice, 91 FR at 8047.
\28\ See id.
\29\ See proposed Exchange Rule 915, Commentary .06(c).
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IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\30\ that the proposed rule change (SR-NYSEAMER-2026-11) is
approved.
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\30\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
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\31\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-06567 Filed 4-3-26; 8:45 am]
BILLING CODE 8011-01-P
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