Notice2026-07348
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Clarifying Changes to the Rule Text Related to the Trading Floor
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 16, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 73 (Thursday, April 16, 2026)</title>
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[Federal Register Volume 91, Number 73 (Thursday, April 16, 2026)]
[Notices]
[Pages 20519-20523]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-07348]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105217; File No. SR-SAPPHIRE-2026-16]
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Make
Clarifying Changes to the Rule Text Related to the Trading Floor
April 13, 2026.
Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice
is hereby given that on March 31, 2026, MIAX Sapphire, LLC (``MIAX
Sapphire'' 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 make clarifying changes to the rule text.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings">https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings</a>, and at MIAX Sapphire's principal office.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to make clarifying changes to select
provisions in the Exchange's Rulebook. These proposed changes are
intended to
[[Page 20520]]
provide additional detail and clarity regarding trading on the
Exchange's Trading Floor.\3\ There is no change to any Exchange
functionality, its operation, or any policy or procedure.
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\3\ The term ``Trading Floor'' or ``Floor'' means the physical
trading floor of the Exchange located in Miami, Florida. The Trading
Floor shall consist of one ``Crowd Area'' or ``Pit'' where Floor
Participants will be located and option contracts will be traded.
The Crowd Area or Pit shall be marked with specific visible
boundaries on the Trading Floor, as determined by the Exchange. A
Floor Broker must represent all orders in an ``open outcry'' fashion
in the Crowd Area. See Exchange Rule 100.
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Background
On the Exchange's Trading Floor, liquidity is provided by Floor
Participants,\4\ including Floor Market Makers.\5\ After a Floor Broker
\6\ announces and exposes a single-sided or two-sided order, a
Qualified Floor Order or ``QFO,'' to the trading crowd on the Floor,
the Floor Broker submits any resulting two-sided executed order into
the Exchange's System,\7\ to facilitate post-trade workflows as
described below. All QFOs are subject to an open outcry process prior
to submission to the System to facilitate post-trade workflows. During
the open outcry process, the Floor Broker must provide Floor
Participants a reasonable amount of time to respond with interest in
trading against the order held by the Floor Broker.\8\ Floor
Participants respond at their discretion, indicating their interest (if
any) in trading against the order. The Floor Broker then makes
allocations (if any) to the responding Floor Participants, as required,
in accordance with the Exchange's allocation rules as set forth in the
Exchange Rulebook. At this point, the QFO is considered executed. Then
the Floor Broker must submit the executed QFO to the System \9\ without
undue delay.\10\ The execution price must be equal to or better than
the NBBO,\11\ with certain exceptions, and may not trade through any
equal priced or better priced Priority Customer \12\ bids or offers on
the Electronic Book \13\ or trade through any better priced
interest.\14\ The highest bid (or lowest offer) has priority, but where
two or more bids (or offers) represent the highest (or lowest) price,
priority is afforded to such bids (or offers) in the sequence in which
they are made.\15\ The Floor Broker is responsible for handling all
orders in accordance with the Exchange's priority and trade-through
rules and for determining the sequence in which bids or offers are
vocalized on the Trading Floor in response to the Floor Broker's bid,
offer, or call for a market.\16\ For instance, when a Floor Broker
executes a single-leg QFO, the Floor Broker shall ensure that the
execution price must be equal to or better than the NBBO, subject to
the exceptions in Rule 1401(b). Additionally, the Floor Broker shall
ensure that the QFO may not (1) trade through any equal or better
priced Priority Customer bids or offers on the Simple Order Book; or
(2) trade through any interest on the Simple Order Book that is priced
better than the proposed execution price.\17\ If Floor Participants
provide a collective response to a Floor Broker's request for a market
in order to fill a large order and the size of the trading crowd's
market exceeds the size of the order to be filled, that order will be
allocated on a size pro rata basis.\18\
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\4\ The term ``Floor Participant'' means Floor Brokers as
defined in Rule 2015 and Floor Market Makers as defined in Rule
2105(b). See Exchange Rule 100.
\5\ A Floor Market Maker is a Floor Participant of the Exchange
located on the Trading Floor who has received permission from the
Exchange to trade in options for his own account. See Exchange Rule
2105(b).
\6\ A Floor Broker is an individual who is registered with the
Exchange for the purpose, while on the Trading Floor, of accepting
and handling options orders. A Floor Broker must be registered as a
Floor Participant prior to registering as a Floor Broker. A Floor
Broker may take into his own account, and subsequently liquidate,
any position that results from an error made while attempting to
execute, as Floor Broker, an order. See Exchange Rule 2015.
\7\ The term ``System'' means the automated trading system used
by the Exchange for the trading of securities. See Exchange Rule
100.
\8\ See Exchange Rule 2040, Interpretations and Policies .09. A
Floor Participant must verbalize that he is ``in'' after a Floor
Broker announces an order, even if a valid quote has been provided
by the Floor Participant prior to the announcement of the order by a
Floor Broker.
\9\ See supra note 7.
\10\ See Exchange Rule 2040(c).
\11\ The term ``NBBO'' means the national best bid or offer as
calculated by the Exchange based on market information received by
the Exchange from OPRA. See Exchange Rule 100.
\12\ ``Priority Customer'' is defined as a person or entity that
(i) is not a broker or dealer in securities, and (ii) does not place
more than 390 orders in listed options per day on average during a
calendar month for its own beneficial accounts. See Exchange Rule
100.
\13\ The term ``Electronic Book'' means the Exchange's Simple
Order Book and Strategy Book. The ``Simple Order Book'' is the
Exchange's regular electronic book of orders and quotes. The
``Strategy Book'' is the Exchange's electronic book of complex
orders. See Exchange Rule 100.
\14\ See Exchange Rule 2040(c).
\15\ See Exchange Rule 2045(a) and (b). If the bids (or offers)
of two or more Floor Participants are made simultaneously, or if it
is impossible to determine clearly the order of time in which they
are made, such bids (or offers) will be deemed to be on parity and
priority will be afforded to them, insofar as practicable, on an
equal basis. See Exchange Rule 2045(c). Exchange Rules also provide
split-price priority to a Floor Participant that buys (sells) one or
more contracts at one price with respect to buying (selling) the
same number of contracts at the next lower (higher) price. See
Exchange Rule 2040(i).
\16\ See Exchange Rules 2040(a) and 2045(d)(1).
\17\ See Exchange Rule 2040(c).
\18\ See Exchange Rule 2045(d)(5). In such circumstances, the
size of the order to be allocated will be multiplied by the size of
an individual Floor Participant's quote divided by the aggregate
size of all Floor Participants' quotes. See Exchange Rule
2045(d)(5)(ii).
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Proposal
The Exchange proposes to make clarifying changes to certain
provisions in Exchange Rule 2030, Responsibilities of Floor Brokers;
Rule 2040, Qualified Floor Orders; and Rule 2055, Clerks, to more
accurately describe order processing on the Exchange's Trading Floor.
Exchange Rule 2030, Responsibilities of Floor Brokers
The Exchange proposes to amend the announcement provision of
Exchange Rule 2030. Currently, Rule 2030(e)(2) provides that, ``[a]
Floor Broker must announce an agency order that the Floor Broker is
representing to the trading crowd before submitting the order to the
Exchange's System for execution. This announcement must take place
whether the Floor Broker is representing a single-sided order and
soliciting contra-side interest, or the Floor Broker has sufficient
interest to match against the agency order already. If a Floor Broker
is holding two non-Priority Customer agency orders or two Priority
Customer agency orders, the Floor Broker will choose which order is the
agency order. If only one of the agency orders is for the account of a
Priority Customer, that order must be the agency order.''
The Exchange proposes to amend the first sentence of Rule
2030(e)(2) to better clarify the stages of an order on the Trading
Floor and the processing that is performed when the executed order is
submitted to the Exchange's System. Specifically, the Exchange proposes
to revise this sentence to provide that, ``[a] Floor Broker must
announce an agency order that the Floor Broker is representing to the
trading crowd before submitting the two-sided executed order to the
Exchange's System to facilitate post-trade workflows.'' The Exchange
believes this language properly delineates that an order is executed on
the trading floor but must still undergo post-trade validation,
designed to ensure regulatory conformity, prior to being treated as a
validated trade (e.g., transmitted to the OCC).
The Exchange also proposes to make a similar change to Policy .02
of Exchange Rule 2030. Currently, Interpretation and Policy .02 to Rule
2030 provides that, ``Floor Brokers must make reasonable efforts to
ascertain
[[Page 20521]]
whether each order entrusted to them is for the account of a Priority
Customer or a broker-dealer. If it is ascertained that the order is for
the account of a broker-dealer, the responsible Floor Broker must
advise the trading crowd of that fact prior to bidding/offering on
behalf of the order or submitting the order for execution. The Floor
Broker or his employees must make the appropriate notation in their
system when it has been determined that the order is for an account of
a broker-dealer.''
The Exchange now proposes to amend the second sentence of
Interpretation and Policy.02 of Exchange Rule 2030 to properly align it
to the lifecycle of an order executed on the Trading Floor.
Specifically, the Exchange proposes to amend the sentence to provide
that, ``[i]f it is ascertained that the order is for the account of a
broker-dealer, the responsible Floor Broker must advise the trading
crowd of that fact prior to bidding/offering on behalf of the order or
submitting the two-sided executed order into the Exchange's System to
facilitate post-trade workflows.'' The Exchange believes this revision
better encapsulates order processing on the Trading Floor.
Rule 2040, Qualified Floor Orders
The Exchange proposes to amend Exchange Rule 2040(a), (b), (c), and
(h) to clarify that the Exchange's System does not execute QFOs.
Rather, QFOs are executed on the Trading Floor and are only submitted
to the Exchange's System to facilitate post-trade workflows. After QFOs
are executed on the Trading Floor, they are subject to post-trade
validation. Post-trade workflows include validating that the trade
price is in compliance with Regulation NMS (National Market System) or
(``Reg NMS''), the Options Locked and Crossed Market Plan, and Trading
Floor Price Collar Protection (``TFPCP''), and also validating that the
QFO is handled in accordance with the Exchange priority rules, and
recording the transaction by the Exchange. If a QFO fails post-trade
validation, it will be invalidated. The trading workflow on the Trading
Floor starts when a Floor Broker receives or forms a fully paired order
or a one-sided order through any of their own proprietary systems or
sources (from clients directly, messaging systems, etc.). The Floor
Broker will then announce, as required, the agency side of the paired
order or the one-sided order to the trading crowd, including
underlying, contract details, side, price, and total size of the order.
Floor Participants will respond at their discretion, indicating their
interest on the contra side of the trade. The Floor Broker will
indicate allocations to each of the responding Floor Participants, as
required, in accordance with the Exchange's allocation rules \19\ as
set forth in the Exchange Rulebook. At this point, the QFO is
considered executed. The purpose of submitting the QFO to the
Exchange's System is to facilitate post-trade workflows. Post-trade
workflows include validating that the trade price is in compliance with
Reg NMS, the Options Locked and Crossed Market Plan, and TFPCP, and
also validating that the QFO is handled in accordance with the Exchange
priority rules, and recording the transaction by the Exchange. As part
of post-trade workflows, the System validates that there are no
contracts on the Electronic Book that have priority over the contra-
side order, among other things. A Floor Broker may, but is not required
to, provide a maximum surrender size.\20\ The maximum surrender size is
a feature offered by the Exchange, which facilitates a process which
could otherwise be completed by the Floor Broker, whereby the Floor
Broker provides an instruction to the System to sweep the Electronic
Book as needed for higher priority liquidity.\21\ Pursuant to the
maximum surrender size feature, if the number of contracts on the
Electronic Book that have priority over the contra-side order is less
than or equal to the maximum surrender size the QFO (cQFO) is treated
as valid, however, the contracts on the initiating side of the QFO
(cQFO) will be allocated against contracts on the Electronic Book with
higher priority over the contra-side of the order.\22\ The number of
contracts to be crossed will be reduced by the number of contracts on
the Electronic Book with higher priority over the contra-side of the
QFO. The remaining balance of contracts on the initiating side of the
QFO (cQFO) will be allocated against the contracts on the contra-side
of the QFO in accordance with Exchange Rule 2040(d). If the number of
contracts on the Electronic Book with higher priority over the contra-
side of the QFO is greater than the maximum surrender size, then the
QFO is invalidated and the Floor Broker is notified.\23\ An
invalidation message stating that the QFO is invalidated and the reason
why it is invalidated will be sent to the Floor Broker. The Floor
Broker may address the issue identified in the invalidation message and
resubmit the QFO to the System. Alternatively, the Floor Broker may
elect not to resubmit the QFO. The Exchange proposes to amend Exchange
Rules 2040(d)(1), (2) and (3) to clarify the allocation rules. Exchange
Rules 2040(d)(1) and (2) currently state that, provided that an
adequate maximum surrender size was provided by the Floor Broker, the
initiating side of the QFO (cQFO) will match against any bids or offers
on the Simple Order Book (Strategy Book) priced better than the contra-
side, then match against Priority Customer Orders on the Simple Order
Book (Strategy Book), along with any bids or offers of non-Priority
Customers ranked ahead of such Priority Customer Orders on the Simple
Order Book (Strategy Book). Last, Exchange Rule 2040(d)(3) currently
provides that, the remaining balance of the initiating side of the QFO
(cQFO) will match against the contra-side of the QFO (cQFO). The
Exchange proposes to amend Exchange Rule 2040(d) to provide that the
initiating side of QFO will be allocated against, not match against,
any contracts on the Electronic Book with higher priority over the
contra-side of the QFO. This is to clarify that the System does not
match QFOs (e.g., when the number of contracts on the Electronic Book
with higher priority over the contra-side of the QFO is greater than
the maximum surrender size, the QFO is simply invalidated). Rather,
QFOs are matched by Floor Brokers and executed on the Trading Floor.
Proposed Exchange Rule 2040 would provide how a QFO is allocated, not
how a QFO is matched. In addition, the Exchange proposes to remove ``by
the System'' from the first sentence of Exchange Rule 2040(d)(3). This
is to clarify that it is the Floor Broker who will allocate the
initiating side the QFO (cQFO) against the contra-side of the QFO
(cQFO), not the Exchange's System.
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\19\ See Exchange Rule 2040(d).
\20\ See Exchange Rule 2040(h).
\21\ The maximum surrender size is an optional feature that
assist. Floor Brokers by eliminating the need to send a separate
order to clear higher priority liquidity on the Electronic Book.
\22\ See Exchange Rule 2040(d)(1).
\23\ See proposed Exchange Rule 2040(h).
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The Exchange proposes to amend Exchange Rule 2040(h) to clarify how
the initiating side of the QFO (cQFO) is allocated provided that an
adequate maximum surrender size was provided by the Floor Broker.
Specifically, the Exchange proposes to amend the last sentences of the
first and second paragraphs in Exchange Rule 2040(h) to clarify that if
the number of contracts on the Electronic Book that have priority over
the contra-side order is less than or equal to the maximum surrender
size, then the initiating side of the QFO (cQFO) will be allocated
against any bids or offers on the Simple Order Book (Strategy Book)
with higher priority over the contra-side of the QFO (cQFO), and
[[Page 20522]]
the remaining balance of the initiating side of QFO (cQFO) will be
allocated against the contra-side of the QFO (cQFO). The purpose of the
proposed changes is to add more detail within the Rulebook as to how
the initiating side of the QFO (cQFO) is allocated provided that an
adequate maximum surrender size was provided by the Floor Broker. The
proposed changes to Rule 2040(h) are consistent with allocation rules
set forth in proposed Exchange Rule 2040(d).
The Exchange proposes to add ``as an instruction to the System'' at
the end of the first sentence of the first and second paragraphs in
Exchange Rule 2040(h). The purpose of the proposed changes is to
specify that the maximum surrender size is the instruction provided by
the Floor Broker to the Exchange to clear a certain number of contracts
on the Simple Order Book and Strategy Book that have priority over the
contra-side order.
The Exchange also proposes to add a sentence specifying that ``[i]f
the Floor Broker fails to provide a maximum surrender size, such value
shall be deemed to be zero'' after the second sentence of both of the
first and second paragraphs in Exchange Rule 2040(h). As mentioned
above, the maximum surrender size is the instruction provided by the
Floor Broker to the Exchange to clear a certain number of contracts on
the Simple Order Book and Strategy Book that have priority over the
contra-side order. The Exchange does not clear any contracts on the
Simple Order Book and Strategy Book unless there is a clear instruction
provided by the Floor Broker, therefore, the Exchange believes that it
is appropriate to set the default value of the maximum surrender size
as zero if the Floor Broker fails to provide a maximum surrender size.
The purpose of the proposed changes is to specify that the maximum
surrender size shall be deemed to be zero, unless a maximum surrender
size is expressly provided by the Floor Broker.
The Exchange proposes to remove ``electronic'' from the second
sentence of Exchange Rule 2055(f)(2). Currently, Exchange Rule 2055
provides that ``. . . [a] Floor Market Maker Clerk may consummate
electronic transactions under the express direction of his or her Floor
Market Maker employer by matching bids and offers . . .'' The Exchange
proposes to remove ``electronic'' from Exchange Rule 2055(f)(2). The
Exchange does maintain a separate, fully automated electronic options
matching engine, however, the Exchange notes that its electronic
matching engine operates completely independent from its Trading Floor
trade matching process. The transactions occurring on the Trading Floor
are executed on the Trading Floor, and then the two-sided executed
transactions are submitted to the Exchange's System to facilitate post-
trade workflows as discussed above. The purpose of the proposed rule
change is to clarify that the transactions occurring on the Trading
Floor are separate and distinct from transactions occurring in the
electronic market and Floor Market Maker Clerks are only involved in
the transactions occurring on the Trading Floor.
The Exchange proposes to add ``on the Simple Order Book'' at the
end of Exchange Rule 2040(a)(6). The purpose of the proposed change is
to add greater detail to the Exchange's Rulebook and make it easier to
understand. QFOs may be complex orders as defined in proposed Exchange
Rule 518. A ``complex order'' is any order involving the concurrent
purchase and/or sale of two or more different options in the same
underlying security (the ``legs'' or ``components'' of the complex
order), for the same account, in a conforming or non-conforming ratio
as defined below for the purposes of executing a particular investment
strategy.\24\ For a cQFO to be valid, all of the components need to be
open for trading on the Simple Order Book. In addition, for stock-tied
cQFOs, the stock must be open for trading.
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\24\ See Exchange Rule 518(a).
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The Exchange proposes to add a comma after ``If'' in the beginning
of the last sentence in Exchange Rule 2040(d)(3). The purpose of the
proposed change is to correct grammatical error and make it easier to
interpret the Exchange's Rulebook.
In addition, the Exchange propose to replace ``Complex QFO'' with
``cQFO'' throughout Exchange Rule 2040. Complex QFO is cQFO, as defined
in Rule 2040(a)(6). This is to add more clarity and consistency within
the Rulebook.
The Exchange does not propose to amend any existing functionality
of the Exchange's System with this proposal. The Exchange proposes to
make clarifying changes to select provisions in the Exchange's
Rulebook. These proposed changes are intended to provide additional
detail and clarity regarding trading on the Exchange's Trading Floor.
There is no change to any Exchange functionality, its operation, or any
policy or procedure. These proposed non-substantive changes would
ensure that the Exchange's Rules are not misleading and easier to
understand.
2. Statutory Basis
The proposed rule change is consistent with Section 6(b) of the
Act,\25\ in general, and furthers the objectives of Section 6(b)(5)
\26\ of the Act in particular, in that it is designed to promote just
and equitable principles of trade, to foster cooperation and
coordination with persons engaged in facilitating transactions in
securities, to remove impediments to and perfect the mechanism of a
free and open market and a national market system and, in general, to
protect investors and the public interest.
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\25\ 15 U.S.C. 78f(b).
\26\ 15 U.S.C. 78f(b)(5).
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The Exchange proposes to make clarifying changes to the rule text.
The proposal to amend Exchange Rule 2030(e)(2), Interpretation and
Policy .02 to Exchange Rule 2030, and Exchange Rule 2040(a), (b), (c),
and (h) is to clarify that the Exchange's System does not execute QFOs.
Rather, the QFOs are submitted to the Exchange's System to facilitate
post-trade workflows. QFOs are executed on the Trading Floor and
subject to post-trade validation. If a QFO fails post-trade validation,
it is invalidated. The proposal to amend Exchange Rule 2040(d) is to
provide that the initiating side of QFO will be allocated against, not
match against, any contracts on the Electronic Book with higher
priority over the contra-side of the QFO, and to clarify that it is the
Floor Broker who will match the initiating side the QFO (cQFO) against
the contra-side of the QFO (cQFO), not the Exchange's System. The
proposed change to add ``as an instruction to the System'' at the end
of the first sentence of the first and second paragraphs in Exchange
Rule 2040(h) is to specify that the maximum surrender size is the
instruction provided by the Floor Broker to the Exchange to clear a
certain number of contracts on the Simple Order Book and Strategy Book
that have priority over the contra-side order. The proposed change to
amend Exchange Rule 2040(h) is to specify that the maximum surrender
size shall be deemed to be zero, unless a maximum surrender size is
expressly provided by the floor broker and to add more detail within
the Rulebook as to how the initiating side of the QFO (cQFO) is
allocated provided that an adequate maximum surrender size was provided
by the Floor Broker. The proposal to amend Exchange Rule 2055(f)(2) is
to clarify that the transactions occurring on the Trading Floor are
separate and
[[Page 20523]]
distinct from transactions occurring in the electronic market and Floor
Market Maker Clerks are only involved in transactions on the Trading
Floor. The proposed change to add ``on the Simple Order Book'' at the
end of Exchange Rule 2040(a)(6) is to add greater detail to the
Exchange's Rulebook. The proposed change to add a comma after ``If'' in
the beginning of the last sentence in Exchange Rule 2040(d)(3) is to
correct grammatical error and make it easier to interpret the
Exchange's Rulebook. The proposal to replace ``Complex QFO'' with
``cQFO'' throughout Exchange Rule 2040 is to add more clarity and
consistency within the Rulebook. The Exchange does not propose to amend
any existing functionality of the Exchange's System with this proposal.
The Exchange proposes to make clarifying changes to select provisions
in the Exchange's Rulebook. These proposed changes are intended to
provide additional detail and clarity regarding trading on the
Exchange's Trading Floor. There is no change to any Exchange
functionality, its operation, or any policy or procedure.
These proposed non-substantive changes would ensure that the
Exchange's Rules are not misleading and easier to understand. In
addition, the proposed rule changes would reduce potential investor and
market participant confusion and therefore remove impediments to and
perfect the mechanism of a free and open market and a national market
system by ensuring that investors and market participants can more
easily navigate, understand and comply with the Exchange's Rules. The
Exchange also believes that the proposed rule changes would remove
impediments to and perfects the mechanism of a free and open market by
ensuring that persons subject to the Exchange's jurisdiction,
regulators, and the investing public can more easily navigate and
understand the Exchange's Rules. The proposed rule changes are not
inconsistent with the public interest and the protection of investors
because investors will not be harmed and in fact would benefit from the
increased transparency and clarity, thereby reducing potential
confusion.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule changes will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act.
Intramarket Competition
The Exchange believes the proposed rule changes do not impose any
burden on intramarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule changes
are not intended to address competitive issues but rather are concerned
solely with making clarifying changes to the rule text with no proposed
changes to related functionality.
Intermarket Competition
The Exchange believes the proposed rule changes do not impose any
burden on intermarket competition that is not necessary or appropriate
in furtherance of the purposes of the Act. The proposed rule changes
are not intended to address competitive issues but rather are concerned
solely with making clarifying changes to the rule text with no proposed
changes to related functionality.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
The Exchange has designated this rule filing as non-controversial
under Section 19(b)(3)(A) of the Act \27\ and Rule 19b-4(f)(6) \28\
thereunder. Because the proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant burden on competition; and (iii)
become operative for 30 days from the date on which it was filed, or
such shorter time as the Commission may designate, it has become
effective pursuant to Section 19(b)(3)(A) of the Act \29\ and Rule 19b-
4(f)(6) \30\ thereunder.
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\27\ 15 U.S.C. 78s(b)(3)(A).
\28\ 17 CFR 240.19b-4(f)(6).
\29\ 15 U.S.C. 78s(b)(3)(A).
\30\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii)
requires a self-regulatory organization to give the Commission
written notice of its intent to file the proposed rule change, along
with a brief description and text of the proposed rule change, at
least five business days prior to the date of filing of the proposed
rule change, or such shorter time as designated by the Commission.
The Exchange has satisfied this requirement.
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At any time within 60 days of the filing of this proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
IV. Solicitation of Comments
Interested persons are invited to submit written data, views and
arguments concerning the foregoing, including whether the proposed rule
change is consistent with the Act. Comments may be submitted by any of
the following methods:
Electronic Comments
<bullet> Use the Commission's internet comment form (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#f684839a93db95999b9b93988285b6859395d8919980"><span class="__cf_email__" data-cfemail="7f0d0a131a521c1012121a110b0c3f0c1a1c51181009">[email protected]</span></a>. Please include
file number SR-SAPPHIRE-2026-16 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-SAPPHIRE-2026-16. 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-SAPPHIRE-2026-16 and should be submitted
on or before May 7, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\31\
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\31\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-07348 Filed 4-15-26; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on April 16, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.