Notice2026-07351
Self-Regulatory Organizations; Miami International Securities Exchange, LLC; Notice of Filing of a Proposed Rule Change To Amend Exchange Rule 402, Criteria for Underlying Securities, and Exchange Rule 403, Withdrawal of Approval of Underlying Securities, To Establish Listing Criteria and Withdrawal Standards for Options on Commodity-Based Trusts Holding Multiple Crypto Assets
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 20530-20536]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-07351]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105220; File No. SR-MIAX-2026-13]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC; Notice of Filing of a Proposed Rule Change To Amend
Exchange Rule 402, Criteria for Underlying Securities, and Exchange
Rule 403, Withdrawal of Approval of Underlying Securities, To Establish
Listing Criteria and Withdrawal Standards for Options on Commodity-
Based Trusts Holding Multiple Crypto Assets
April 13, 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 30, 2026, Miami International Securities Exchange, LLC
(``MIAX'' 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 Exchange Rule 402, Criteria for
Underlying Securities, and Exchange Rule 403, Withdrawal of Approval of
Underlying Securities, to establish listing criteria and withdrawal
standards for options on Commodity-Based Trusts that hold multiple
crypto assets.
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's principal office.
[[Page 20531]]
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Exchange Rule 402, Criteria for
Underlying Securities, and Exchange Rule 403, Withdrawal of Approval of
Underlying Securities, to establish listing criteria and withdrawal
standards for options on Commodity-Based Trusts that hold multiple
crypto assets.\3\ Specifically, the Exchange proposes to amend the
criteria for listing options on Exchange-Traded Fund Shares (``ETFs'')
at Exchange Rule 402(i) and withdrawal criteria at Exchange Rule 403.
This is a competitive filing substantively identical to the proposal
submitted by Nasdaq ISE, LLC (``ISE'') to the Securities and Exchange
Commission (the ``Commission''), which was recently approved.\4\
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\3\ The Exchange notes that its affiliate options exchanges,
MIAX PEARL, LLC (``MIAX Pearl'') and MIAX Sapphire, LLC (``MIAX
Sapphire''), submitted (or will submit) substantively similar
proposals. The Exchange notes that the rules of Chapter IV of MIAX,
including Exchange Rule 402, are incorporated by reference into the
MIAX Emerald, LLC (``MIAX Emerald'') rulebook.
\4\ See Securities Exchange Act Release No. 105072 (March 24,
2026), (SR-ISE-2025-30) (Self-Regulatory Organizations; Nasdaq ISE,
LLC; Order Approving a Proposed Rule Change, as Modified by
Amendment Nos. 1 and 2, Regarding the Adoption of Listing Criteria
for Options on Commodity-Based Trusts That Hold Multiple Crypto
Assets).
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On March 5, 2025,\5\ the Exchange filed SR-MIAX-2025-07, as
Modified by Partial Amendment No. 1, a proposed rule change to amend
its listing rules at Exchange Rule 402, Criteria for Underlying
Securities, to allow the listing and trading of options on interests in
a Commodity-Based Trust and on November 6, 2025, during the government
shutdown, the Exchange submitted Amendment 2 to SR-MIAX-2025-07. SR-
MIAX-2025-07 was deemed approved as of November 14, 2025.\6\ The
Exchange also reiterated the changes proposed in SR-MIAX-2025-07 to
codify the proposed rule text in the Exchange's Rulebook by filing SR-
MIAX-2025-49, which was noticed for immediate effectiveness.\7\
Currently, Exchange Rule 402(i)(6) allows the Exchange to list and
trade options on a Commodity-Based Trust that meets the generic listing
standards for Commodity-Based Trust Shares of the applicable primary
listing market, provided that the Commodity-Based Trust holds a single
crypto asset.\8\
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\5\ See Securities Exchange Act Release No. 102658 (March 5,
2025), 90 FR 12870 (March 19, 2025) (SR-MIAX-2025-07) (Self-
Regulatory Organizations; Notice of Filing of a Proposed Rule
Change, as Modified by Partial Amendment No. 1, by Miami
International Securities Exchange, LLC To Amend Exchange Rule 402,
Criteria for Underlying Securities, To List and Trade Options on
Commodity-Based Trust Shares).
\6\ See Securities Exchange Act Release No. 104210 (November 18,
2025), 90 FR 52727 (November 21, 2025) (SR-MIAX-2025-07) (Self-
Regulatory Organizations; BOX Exchange LLC, Cboe Exchange, Inc.,
Cboe BYX Exchange, Inc., Cboe BZX Exchange, Inc., Cboe EDGX
Exchange, Inc., Miami International Securities Exchange, LLC, MIAX
PEARL, LLC, MIAX Sapphire, LLC, Nasdaq ISE, LLC, New York Stock
Exchange LLC, NYSE American LLC, NYSE Arca, Inc., NYSE National,
Inc., and NYSE Texas, Inc.; Notice of Deemed Approval of Various
Proposed Rule Changes).
\7\ See Securities Exchange Act Release No. 104451 (December 4,
2025), 90 FR 60208 (December 23, 2025) (SR-MIAX-2025-49) (Self-
Regulatory Organizations; Miami International Securities Exchange,
LLC; Notice of Filing of a Proposed Rule Change To Amend Exchange
Rule 402, Criteria for Underlying Securities, To Permit Options on
Commodity-Based Trust Shares).
\8\ The term ``crypto asset'' means 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. See Exchange
Rule 402(i)(6)(iii).
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On September 17, 2025, the Commission approved proposals by The
Nasdaq Stock Market LLC, Cboe BZX Exchange, Inc. and NYSE Arca, Inc.,
to Adopt Generic Listing Standards for Commodity-Based Trusts.\9\ In
the approval order, the Commission noted that each of the exchanges
proposed to adopt substantially identical ``generic'' listing standards
for Commodity-Based Trusts. Those generic listing standards define the
term shares of a ``Commodity-Based Trust'' as a security \10\ that:
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\9\ See Securities Exchange Act Release No. 103995 (Sept. 17,
2025), 90 FR 45414 (Sept. 22, 2025) (Self-Regulatory Organizations;
The Nasdaq Stock Market LLC; Cboe BZX Exchange, Inc.; NYSE Arca,
Inc.; Order Granting Accelerated Approval of Proposed Rule Changes,
as Modified by Amendments Thereto, To Adopt Generic Listing
Standards for Commodity-Based Trust Shares) (SR-NASDAQ-2025-056; SR-
CboeBZX-2025-104; SR-NYSEARCA-2025-54) (``Generic Listing Standards
for Commodity-Based Trust Shares Approval''). The Exchange believes
that it is appropriate to rely on the generic listing standards
outlined by the primary listing market due to the potential
proliferation of new primary listing markets and the Commission's
acknowledgment that the definition of shares of a Commodity-Based
Trust across those primary listing markets is substantially
identical.
\10\ Shares of the applicable Commodity-Based Trust trade as
equity securities. See Securities Exchange Act Release No. 50603
(Oct. 28, 2004), 69 FR 64614, 64619 (Nov. 5, 2004) (SR-NYSE-2004-22)
(approving the listing and trading of streetTRACKS Gold Shares)
(``Spot Gold Approval Order'') and ETP Request for Comments, infra
note 20, at 34731. See also Nasdaq Rule 5711(d)(ii); proposed BZX
Rule 14.11(e)(4)(B); proposed NYSE Arca Rule 8.201-E(b) (Generic)
(stating that Commodity-Based Trust Shares are included within the
definition of a ``security'' as such term is used in the Exchanges'
rules and are subject to the Exchanges' existing rules governing the
trading of equity securities).
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(1) is issued by a trust, limited liability company, partnership,
or other similar entity (``Trust'') that, if applicable, is operated by
a registered commodity pool operator pursuant to the Commodity Exchange
Act (``CEA''), and is not registered as an investment company pursuant
to the Investment Company Act of 1940, or series or class thereof;
(2) is designed to reflect the performance of one or more reference
assets or an index of reference assets;
(3) in order to reflect the performance, is issued by a Trust that
holds (a) one or more commodities or commodity-based assets, and (b) in
addition to such commodities or commodity-based assets, may hold
securities, cash, and cash equivalents;
(4) is issued by such Trust in a specified aggregate minimum number
in return for a deposit of (a) a specified quantity of the underlying
commodities, commodity-based assets, securities, cash, and/or cash
equivalents or (b) a cash amount with a value based on the next
determined net asset value per Trust share; and
(5) when aggregated in the same specified minimum number, may be
redeemed at a holder's request by such Trust which will deliver to the
redeeming holder (a) the specified quantity of the underlying
commodities, commodity-based assets, securities, cash, and/or cash
equivalents or (b) a cash amount with a value based on the next
determined net asset value per Trust share.
Further, a Commodity-Based Trust that meets the requirements of
Exchange Rule 402(i)(6) must also satisfy the following requirements:
(A) the total global supply of the underlying crypto asset held by the
Commodity Based Trust must have 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 must underlie a derivatives contract
that trades on a market with which the Exchange has a comprehensive
[[Page 20532]]
surveillance sharing agreement, whether directly or through common
membership in the Intermarket Surveillance Group (``ISG'').
At this time, the Exchange proposes to amend Exchange Rule
402(i)(6) to permit the listing and trading of options on a Commodity-
Based Trust that holds multiple crypto assets in addition to a
Commodity-Based Trust that holds a single crypto asset. As amended,
Exchange Rule 402(i)(6) would state,
(6) represent interests in a Commodity-Based Trust that meet the
generic listing standards for Commodity-Based Trust Shares of the
applicable primary listing market, except that the Commodity-Based
Trust holds a single crypto asset or multiple crypto assets as defined
in subparagraph (iii) below, provided that all of the following
conditions are met:
Further, the Exchange proposes to amend Exchange Rule
402(i)(6)(iii) to state,
Additionally, with respect to a Commodity-Based Trust that meets
the requirements of Exchange Rule 402(i)(6), the following requirements
are satisfied: (A) the total global supply of each underlying crypto
asset(s) held by the Commodity-Based Trust has an average daily market
value of at least $700 million over the last 12 months; and (B) each
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. For
purposes of this rule the term ``crypto asset'' means 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.
With the addition of multiple crypto assets, the criteria would
require each underlying crypto asset to meet the total global supply
figure and to underlie a derivative contract that trades on a market
with which the Exchange has a comprehensive surveillance sharing
agreement. The market value for each underlying crypto asset held by a
Commodity-Based Trust will be calculated by taking the total global
supply of the particular crypto asset multiplied by the token price of
that asset.\11\ The total supply of a crypto asset includes all crypto
assets currently issued and does not include unissued crypto
assets.\12\
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\11\ The market supply information can be obtained from publicly
available sources such as <a href="http://coingecko.com">coingecko.com</a> or <a href="http://coinmarketcap.com">coinmarketcap.com</a>.
\12\ For example, if Bitcoin were the underlying crypto asset,
the Exchange would consider the total supply of all Bitcoin
currently issued instead of the maximum supply, which would be
currently issued as well as unminted Bitcoin. As of March 10, 2026
Bitcoin's total supply was 20,000,406 (the maximum supply is
21,000,000). See <a href="https://www.coingecko.com/en/coins/bitcoin">https://www.coingecko.com/en/coins/bitcoin</a>. The
Exchange would calculate market value by utilizing the total supply
number multiplied by the Bitcoin price on that day.
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As a result of this filing, the proposed listing criteria would
permit a Commodity Based Trust that is generically listed on the
applicable primary listing market and holds multiple crypto assets to
qualify for the listing of options on that ETF, provided Exchange Rule
402(i)(6)(iii), as amended in the relevant part, has also been met, as
well as the listing criteria in Exchange Rule 402(a) and (b), or
Exchange Rule 402(i)(6)(i)(B).
Similar to options on any ETF, an option on a Commodity-Based Trust
that meets the requirements of Exchange Rule 402(i)(6) would also be
subject to the Exchange's continued listing standards for options on
ETFs set forth in Exchange Rule 403(g). Currently, pursuant to Exchange
Rule 403(g), ETFs approved for options trading pursuant to Exchange
Rule 402(i) will not be deemed to meet the requirements for continued
approval, and the Exchange shall not open for trading any additional
series of option contracts of the class covering that such ETFs, if the
ETFs are delisted from trading pursuant to Exchange Rule 403(b)(4),\13\
are halted or suspended from trading in their primary market.\14\ With
respect to options on Commodity-Based Trusts that are approved subject
to Exchange Rule 402(i)(6), the Exchange proposes to amend Exchange
Rule 403(g) to adopt a new subparagraph (3) which states, ``In the case
of options covering Exchange-Traded Fund Shares approved pursuant to
Exchange Rule 402(i)(6), if the criteria in Exchange Rule
402(i)(6)(iii)(A) are no longer satisfied, as determined by the
Exchange on a monthly basis, or if the criteria in Exchange Rule
402(i)(6)(iii)(B) are no longer satisfied.'' \15\ This proposed new
criteria would require ETFs that are listed pursuant to Exchange Rule
402(i)(6) to continue to meet the requirements of Exchange Rule
402(i)(6)(iii)(A) and (B). Additionally, this proposed new criteria,
which would also be added to Exchange Rule 403(g)(1), would require
ETFs that are listed pursuant to Exchange Rule 402(i)(6)(i)(A) to
continue to meet the requirements of Exchange Rule 403 subparagraphs
(b)(1), (2), (3) and (4) of Exchange Rule 403. The Exchange is
proposing that the criteria in Exchange Rule 402(i)(6)(iii)(A) be met
on a monthly basis while the criteria in Exchange Rule
402(i)(6)(iii)(B) be met on a daily basis. The Exchange believes that
requiring the criteria in Exchange Rule 402(i)(6)(iii)(A) 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 resulting of trading over a relatively short
period of time. By way of example, if a crypto asset has a market
capitalization of $900 million and traded at that market capitalization
for 15 days in a 20-day trading month, the crypto asset could lose a
substantial amount of its value (up to 88%) and still meet the
criteria. Similarly, a crypto asset with a market capitalization of
$500 million for 15 days in a 20-day trading month, would have to
achieve a market capitalization of $1.3 billion (a 160% increase) in
the last 5 days to meet the criteria. Given the unlikelihood that there
would be a huge movement over a month's period of time and considering
the work that would be required to calculate the criteria on a daily
basis as compared to each month, the Exchange believes that the
proposed continued listing obligation for the average daily market
value criteria is sufficient. Further, options on Commodity-Based
Trusts that are approved subject to Exchange Rule 402(i)(6) would
continue to be subject to Exchange Rule 403(g)(5), as renumbered, which
states that the Exchange may consider suspending open transactions in
options on an ETF if, ``such other event occurs or condition exists
that in the opinion of the Exchange makes further dealing in such
options on the Exchange inadvisable.'' The Exchange may determine at
any point to delist an option on a Commodity-Based Trust that may not
have sufficient liquidity or market demand.
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\13\ Exchange Rule 403(b)(4) provides the Exchange will not open
for trading any additional series of options on shares of an ETF if
the ETF is no longer an NMS stock as defined in Rule 600 of Reg NMS
under the Act.
\14\ See Exchange Rule 403(g).
\15\ The Exchange would renumber the remaining paragraphs of
Exchange Rule 403(g).
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Consistent with current Exchange Rule 404, which governs the
opening of options series on a specific underlying security (including
ETFs), the Exchange will open at least one expiration month \16\ for
options on Commodity-
[[Page 20533]]
Based Trusts that are approved subject to Exchange Rule 402(i)(6) and
may also list series of options on Commodity-Based Trust Share for
trading on a weekly,\17\ monthly,\18\ or quarterly \19\ basis. The
Exchange may also list long-term equity option series (``LEAPS'') that
expire from 12 to 39 months from the time they are listed.\20\
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\16\ See Exchange Rule 404(b). The monthly expirations are
subject to certain listing criteria for underlying securities
described within Exchange Rule 404 and its Interpretations and
Policies. Monthly listings expire the third Friday of the month. The
term ``expiration date'' (unless separately defined elsewhere in the
OCC By-Laws), when used in respect of an option contract (subject to
certain exceptions), means the third Friday of the expiration month
of such option contract, or if such Friday is a day on which the
exchange on which such option is listed is not open for business,
the preceding day on which such exchange is open for business. See
OCC By-Laws Article I, Section 1. Pursuant to Exchange Rule 404(c),
additional series of options of the same class may be opened for
trading on the Exchange when the Exchange deems it necessary to
maintain an orderly market, to meet customer demand or when the
market price of the underlying stock moves more than five strike
prices from the initial exercise price or prices. Pursuant to
Exchange Rule 404(e), new series of options on an individual stock
may be added until the beginning of the month in which the options
contract will expire. Due to unusual market conditions, the
Exchange, in its discretion, may add a new series of options on an
individual stock until the close of trading on the business day
prior to expiration.
\17\ See Exchange Rule 404, Interpretation and Policy .02.
\18\ See Exchange Rule 404, Interpretation and Policy .13.
\19\ See Exchange Rule 404, Interpretation and Policy .03.
\20\ See Exchange Rule 406.
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Pursuant to Exchange Rule 404, Interpretation and Policy .06, which
governs strike prices of series of options on ETFs, the interval
between strike prices of series of options on ETFs approved for options
trading pursuant to Exchange Rule 402(i) shall be fixed at a price per
share which is reasonably close to the price per share at which the
underlying security is traded in the primary market at or about the
same time such series of options is first open for trading on the
Exchange, or at such intervals as may have been established on another
options exchange prior to the initiation of trading on the Exchange.
With respect to the Short Term Options Series or Weekly Program, during
the month prior to expiration of an option class that is selected for
the Short Term Option Series Program, the strike price intervals for
the related non-Short Term Option (``Related non-Short Term Option'')
shall be the same as the strike price intervals for the Short Term
Option.\21\ Specifically, the Exchange may open for trading Short Term
Option Series at strike price intervals of (i) $0.50 or greater where
the strike price is less than $100, and $1 or greater where the strike
price is between $100 and $150 for all option classes that participate
in the Short Term Options Series Program; (ii) $0.50 for option classes
that trade in one dollar increments and are in the Short Term Option
Series Program; or (iii) $2.50 or greater where the strike price is
above $150.\22\ Additionally, the Exchange may list series of options
pursuant to the $1 Strike Price Interval Program,\23\ the $0.50 Strike
Program,\24\ and the $2.50 Strike Price Program.\25\ Pursuant to
Exchange Rule 510, where the price of a series of options on a
Commodity-Based Trust is less than $3.00, the minimum increment will be
$0.05, and where the price is $3.00 or higher, the minimum increment
will be $0.10 \26\ consistent with the minimum increments for options
on other ETFs listed on the Exchange. Any and all new series of a
Commodity-Based Trust options that the Exchange lists will be
consistent and comply with the expirations, strike prices, and minimum
increments set forth in Rules 404 and 510, as applicable.
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\21\ See Exchange Rule 404, Interpretation and Policy .02(e).
\22\ Id.
\23\ See Exchange Rule 404, Interpretation and Policy .01.
\24\ See Exchange Rule 404, Interpretation and Policy .04.
\25\ See Exchange Rule 404(f).
\26\ See Exchange Rule 510.
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Further, options on Commodity-Based Trusts that are approved
subject to Exchange Rule 402(i)(6) would trade in the same manner as
options on other ETFs on the Exchange. The Exchange Rules that
currently apply to the listing and trading of all options on ETFs on
the Exchange, including, for example, Rules that govern listing
criteria, expirations, exercise prices, minimum increments, position
and exercise limits, margin requirements, customer accounts and trading
halt procedures would apply to the listing and trading of options on
Commodity-Based Trusts that are approved subject to Exchange Rule
402(i)(6) in the same manner.
Position and exercise limits for options on Commodity-Based Trusts
that are approved pursuant to Exchange Rule 402(i)(6) would be
determined pursuant to Exchange Rules 307 and 309, respectively, as is
the case for other options on other ETFs. Position and exercise limits
for options on ETF vary according to the number of outstanding shares
and the trading volumes of the underlying ETF over the past six months,
where the largest in capitalization and the most frequently traded ETFs
have an option position and exercise limits of 250,000 contracts (with
adjustments for splits, re-capitalizations, etc.) on the same side of
the market; and smaller capitalization ETFs have position and exercise
limits of 200,000, 75,000, 50,000 or 25,000 contracts (with adjustments
for splits, re-capitalizations, etc.) on the same side of the market.
Further, Exchange Rule 1502, which governs margin requirements
applicable to trading on the Exchange, including options on ETFs, will
also apply to the trading of options on a Commodity-Based Trusts listed
pursuant to Exchange Rule 402(i)(6).
The Exchange represents that the same surveillance procedures
applicable to all other options on other ETFs currently listed and
traded on the Exchange will apply to the trading of options on
Commodity-Based Trusts that are approved subject to Exchange Rule
402(i)(6).\27\ The Exchange represents that it has the necessary
systems capacity to support the new option series. The Exchange
believes 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 ETFs, including
the listing of options on Commodity-Based Trusts that are approved
subject to Exchange Rule 402(i)(6). Also, the Exchange 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. The Exchange has specified in proposed Exchange Rule
402(i)(6) that each crypto asset held by the 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.\28\ The Exchange will be
required to ensure that this requirement is met prior to listing
options on a Commodity-Based Trust listed pursuant to proposed Exchange
Rule 402(i)(6).
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\27\ The surveillance program includes real-time patterns for
price and volume movements and post-trade surveillance patterns
(e.g., spoofing, marking the close, pinging, phishing).
\28\ There are a number of futures contracts on digital asset
commodities that are listed and trading on the CME and Coinbase
Derivatives, both of which are ISG members. See <a href="https://www.cmegroup.com/markets/cryptocurrencies.html#products">https://www.cmegroup.com/markets/cryptocurrencies.html#products</a>. See also
<a href="https://www.coinbase.com/derivatives">https://www.coinbase.com/derivatives</a>.
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Additionally, the Exchange has also analyzed its capacity and
represents that it believes the Exchange and the Options Price
Reporting Authority or ``OPRA'' have the necessary systems
[[Page 20534]]
capacity to handle the additional traffic associated with the listing
of new series of ETFs, including options on Commodity-Based Trusts,
that are approved subject to Exchange Rule 402(i)(6), up to the number
of expirations currently permissible under the Exchange Rules.
Finally, today, the Exchange lists and trades options on ETFs that
would qualify for listing as an option on a Commodity-Based Trust under
proposed Exchange Rule 402(i)(6),\29\ and it has not identified any
issues with the listing and trading of options on those ETFs.
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\29\ The following ETFs currently have options listed on them on
the Exchange: iShares Bitcoin Trust, the Fidelity Wise Origin
Bitcoin Fund, the ARK21Shares Bitcoin ETF, the Grayscale Bitcoin
Trust (BTC), the Grayscale Bitcoin Mini Trust BTC, and the Bitwise
Bitcoin ETF. See Exchange Rule 402(i)(4). The Exchange filed rule
proposals and received the appropriate regulatory notice or approval
to list the aforementioned options on the ETFs.
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2. Statutory Basis
The Exchange believes the proposed rule change is consistent with
the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\30\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \31\ requirements that the rules
of an exchange be designed to prevent fraudulent and manipulative acts
and practices, to promote just and equitable principles of trade, to
foster cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
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.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \32\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\30\ 15 U.S.C. 78f(b).
\31\ 15 U.S.C. 78f(b)(5).
\32\ Id.
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In particular, the Exchange believes that its proposal to permit
Commodity-Based Trust Shares that hold multiple crypto assets to be
listed and traded without the need for additional approvals, will
remove impediments to and perfect the mechanism of a free and open
market and a national market system and, in general, protect investors
because it would allow the Exchange to immediately list and trade
qualifying options on Commodity-Based Trusts, provided the initial
listing criteria has been met, without any additional approvals from
the Commission.
Specifically, the Exchange's proposal to adopt Exchange Rule
402(i)(6) to allow the listing and trading of options on units that
represent interests in Commodity- Based Trusts that meet the generic
listing standards for Commodity-Based Trust Shares of the applicable
primary listing market,\33\ and hold multiple crypto assets in addition
to single crypto assets, is consistent with the Act because it will
permit the Exchange to offer options on Commodity-Based Trusts soon
after the listing of the ETF on the primary listing market, provided
that all the generic listing standards for that Commodity-Based Trust
on that primary listing market have been met. Listing these options
will avail market participants of the opportunity to hedge their
positions in the Commodity-Based Trusts in a timely manner, thereby
providing investors with the ability to hedge their exposure to the
underlying Commodity-Based Trust. Options on Commodity-Based Trusts
benefits investors, similar to the listing of any other option on an
ETF, by providing investors with a relatively lower-cost risk
management tool to manage their positions and associated risk in their
portfolios more easily in connection with exposure to the price of a
crypto asset. Additionally, listing options on Commodity-Based Trusts
provides investors with the ability to transact in such options on a
listed market as opposed to the OTC options market, which increases
market transparency and enhances the process of price discovery to the
benefit of all investors.
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\33\ See supra note 9.
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Also, this proposal would permit options on Commodity-Based Trusts
to be listed on the Exchange in the same manner as all other securities
that are subject to the current listing criteria in Exchange Rule 402.
The Exchange notes that the majority of ETFs are able to list and trade
options once the initial listing criteria have been met without the
need for additional approvals. The proposed rule change would allow
options on certain Commodity-Based Trusts to likewise list and trade
options once the initial listing criteria on the primary listing market
have been met without the need for additional approvals.
As proposed, the Exchange would list options in a Commodity-Based
Trust that met the generic criteria of the applicable primary listing
market, provided the Commodity-Based Trust held multiple crypto assets.
Further, each crypto asset held by the Commodity-Based Trust would also
be required to satisfy the conditions in proposed Exchange Rule
402(i)(6)(iii), which requires that (A) the total global supply of each
underlying 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) each crypto asset held by the Commodity-Based Trust
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 the ISG.
These requirements are consistent with the Act and the protection
of investors as they should ensure that each crypto asset held by the
underlying ETF has sufficient liquidity prior to listing options, which
will serve to prevent disruption to the underlying market. The Exchange
believes that market supply serves as a good measure of liquidity to
permit options trading in options on Commodity-Based Trusts that holds
multiple crypto assets. Requiring each underlying crypto asset to have
a requisite amount of deliverable supply, in addition to all the other
criteria the ETF is required to have under the applicable primary
listing market rules, should ensure adequate liquidity prior to
listing. Further, ensuring each 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 ISG,
will provide the Exchange with information to adequately surveillance
options on qualifying Commodity-Based Trusts. Today, the Exchange has a
comprehensive surveillance sharing agreement in place with both the CME
and Coinbase Derivatives through its common membership in ISG. This
facilitates the sharing of information that is available to the CME and
Coinbase Derivatives through their surveillance of their respective
markets, including their surveillance of their respective digital asset
futures markets.
The Exchange also believes the proposed rule change will remove
impediments to and perfect the mechanism of a free and open market and
a national market system, because it is consistent with current
Exchange Rules, previously filed with the Commission. Options on
qualifying Commodity-Based Trusts must satisfy the initial listing
standards and continued listing standards currently in the Exchange
Rules applicable to options on all ETFs, including ETFs that
[[Page 20535]]
hold other crypto assets already deemed appropriate for options trading
on the Exchange in addition to the proposed criteria.
Further, the proposal adopts new subparagraph (3) to Exchange Rule
403(g) which will require each crypto asset held by a Commodity-Based
Trust to continue to meet the requirement of Exchange Rule
402(i)(6)(iii)(A) on a monthly basis and for the criteria in Exchange
Rule 402(i)(6)(iii)(B) to be met on a continuous basis. Accordingly,
each crypto asset held by a Commodity-Based Trust must continue to have
a total global supply with an average daily market value of at least
$700 million over the last 12 months, and also must continue to
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 the ISG. The Exchange believes
that this continued listing standard, in addition to requirements of
Rule 402(i) would protect investors and the public interest by ensuring
that the crypto assets held by the Commodity-Based Trust continue to
remain liquid. The Exchange believes that requiring the criteria in
Exchange Rule 402(i)(6)(iii)(A) on a monthly basis is consistent with
the Act and the protection of investors 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 resulting of trading over a
relatively short period of time. By way of example, if a crypto asset
has a market capitalization of $900 million and traded at that market
capitalization for 15 days in a 20-day trading month, the crypto asset
could lose a substantial amount of its value (up to 88%) and still meet
the criteria. Similarly, a crypto asset with a market capitalization of
$500 million for 15 days in a 20-day trading month, would have to
achieve a market capitalization of $1.3 billion (a 160% increase) in
the last 5 days to meet the criteria. Given the unlikelihood that there
would be a huge movement over a month's period of time and considering
the work that would be required to calculate the criteria on a daily
basis as compared to each month, the Exchange believes that the
proposed continued listing obligation for the average daily market
value criteria is sufficient. Further, options on Commodity-Based
Trusts that are approved subject to Exchange Rule 402(i)(6) would
continue to be subject to exchange Rule 403(g)(5), as renumbered, which
states that the Exchange may consider suspending open transactions in
options on an ETF if, ``such other event occurs or condition exists
that in the opinion of the Exchange makes further dealing in such
options on the Exchange inadvisable.'' The Exchange may determine at
any point to delist an option on a Commodity-Based Trust that may not
have sufficient liquidity or market demand.
Options on qualifying Commodity-Based Trusts would trade in the
same manner as any other ETF options--the same Exchange Rules that
currently govern the listing and trading of all ETF options, including
permissible expirations, strike prices and minimum increments, and
applicable position and exercise limits and margin requirements, will
govern the listing and trading of options on qualifying Commodity-Based
Trusts.
The Exchange represents that it has the necessary systems capacity
to support the listing and trading of options on qualifying Commodity-
Based Trusts. The Exchange believes that its existing surveillance and
reporting safeguards are designed to deter and detect possible
manipulative behavior which might arise from listing and trading of
these options on Commodity-Based Trust, particularly in light of the
additional requirement that each 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 ISG.
Finally, today, the Exchange lists and trades options on ETFs that
would qualify for listing as an option on a Commodity-Based Trust under
proposed Exchange Rule 402(i)(6),\34\ and it has not identified any
issues with the listing and trading of options on those ETFs.
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\34\ The following ETFs currently have options listed on them on
the Exchange: iShares Bitcoin Trust, the Fidelity Wise Origin
Bitcoin Fund, the ARK21Shares Bitcoin ETF, the Grayscale Bitcoin
Trust (BTC), the Grayscale Bitcoin Mini Trust BTC, and the Bitwise
Bitcoin ETF. See Exchange Rule 402(i)(4). The Exchange filed rule
proposals and received the appropriate regulatory notice or approval
to list the aforementioned options on the ETFs.
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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 that is not necessary or appropriate
in furtherance of the purposes of the Act. In this regard and as
indicated above, the Exchange notes that the rule change is being
proposed as a competitive response to the filing submitted by ISE.\35\
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\35\ See supra note 4.
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The Exchange does not believe that the proposal to amend the
listing criteria at Exchange Rule 402(i)(6), with respect to ETFs, to
adopt new criteria to permit the listing and trading of options on
certain Commodity-Based Trusts that hold multiple crypto assets and
that were listed pursuant to the generic listing standards for
Commodity-Based Trust Shares of the applicable primary listing market,
without the need for additional approvals, will impose any burden on
intramarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act. Options on qualifying
Commodity-Based Trusts would need to satisfy the initial listing
standards set forth in the Exchange Rules in the same manner as any
other ETF before the Exchange could list options on them. Additionally,
options on qualifying Commodity-Based Trusts will be equally available
to all market participants who wish to trade such options. The Exchange
Rules currently applicable to the listing and trading of options on
ETFs on the Exchange will apply in the same manner to the listing and
trading of all options on qualifying Commodity-Based Trusts.
Additionally, the Exchange notes that listing and trading options
on qualifying Commodity-Based Trusts on the Exchange will subject such
options to transparent exchange based rules as well as price discovery
and liquidity, as opposed to alternatively trading such options in the
OTC market. The Exchange believes that the proposed rule change may
relieve any burden on, or otherwise promote, competition as it is
designed to increase competition for order flow on the Exchange in a
manner that is beneficial to investors by providing them with a lower-
cost option to hedge their investment portfolios in a timely manner.
The Exchange does not believe that the proposal to adopt new
listing criteria at Exchange Rule 402(i)(6) to permit the listing and
trading of certain options on certain Commodity-Based Trusts that hold
multiple crypto assets and that were listed pursuant to the generic
listing standards for Commodity-Based Trust Shares of the applicable
primary listing market, without the need for additional approvals, will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. Other options
exchanges are free to amend their applicable rules to permit them to
[[Page 20536]]
list and trade options on Commodity-Based Trusts that hold multiple
crypto assets.
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
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#8ffdfae3eaa2ece0e2e2eae1fbfccffceaeca1e8e0f9"><span class="__cf_email__" data-cfemail="0e7c7b626b236d6163636b607a7d4e7d6b6d20696178">[email protected]</span></a>. Please include
file number SR-MIAX-2026-13 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-MIAX-2026-13. 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-MIAX-2026-13 and should be submitted on
or before May 7, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\36\
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\36\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-07351 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.