Notice2026-08479
Self-Regulatory Organizations: Miami International Securities Exchange, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Exchange Rule 531
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Published
May 1, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 84 (Friday, May 1, 2026)</title>
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[Federal Register Volume 91, Number 84 (Friday, May 1, 2026)]
[Notices]
[Pages 23479-23483]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-08479]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105326; File No. SR-MIAX-2026-15]
Self-Regulatory Organizations: Miami International Securities
Exchange, LLC; Notice of Filing and Immediate Effectiveness of a
Proposed Rule Change To Amend Exchange Rule 531
April 28, 2026.
Pursuant to the provisions of 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 April 15, 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
[[Page 23480]]
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 531(d), the Purge
Liquidity Taker Report (the ``Report''), to update the timeframe used
by the Exchange for the time difference between the time the first
response that executes against the resting quote was received by the
Exchange and the time that the purge message that was sent by the
Recipient Member (described below) to cancel that resting quote was
received by the Exchange.
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.
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 531(d) for the Report
to update the timeframe used by the Exchange for the time difference
between the time the first response that executes against the resting
quote \3\ was received by the Exchange and the time that the purge \4\
message that was sent by the Recipient Member to cancel that resting
quote was received by the Exchange.
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\3\ See Exchange Rule 100.
\4\ Purge messages are sent over purge ports, which support only
quote mass cancel messages. See MIAX Options Exchange User Manual,
Version 1.0.0, Section 5.01 (dated December 12, 2023), available at
<a href="https://www.miaxglobal.com/miax_options_user_manual.pdf">https://www.miaxglobal.com/miax_options_user_manual.pdf</a>.
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The Exchange recently filed a proposed rule change with the
Securities and Exchange Commission (``Commission'') to establish the
Report.\5\ On March 26, 2026, the Exchange issued an alert announcing
that the Report would become available for subscription beginning April
1, 2026.\6\ On March 31, 2026, the Exchange filed a proposed rule
change with the Commission to, among other things, establish fees for
the Report.\7\ The Report is an optional product available to Market
Makers.\8\
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\5\ See Securities Exchange Act Release No. 104778 (February 6,
2026), 91 FR 6276 (February 11, 2026) (SR-MIAX-2026-05).
\6\ See Trading Alert, MIAX Exchange Group--Options Markets--
Purge Liquidity Taker Report Launching April 1, 2026, available at
<a href="https://www.miaxglobal.com/alert/2026/03/26/miax-exchange-group-optionsmarkets-purge-liquidity-taker-report-launching-2?nav=all">https://www.miaxglobal.com/alert/2026/03/26/miax-exchange-group-optionsmarkets-purge-liquidity-taker-report-launching-2?nav=all</a>.
\7\ See Securities Exchange Act Release No. 105232 (April 14,
2026) (SR-MIAX-2026-14) (not yet published in the Federal Register).
\8\ See Exchange Rule 100.
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Report Content, Current Timeframes, and Scope
The Report is a daily report that provides a Market Maker (referred
to as the ``Recipient Member'') with the liquidity response/taker time
details for executions against quotes entered by the Recipient Member
that are resting on the Simple Order Book \9\ that occur before and
after the receipt of a purge message sent by the Recipient Member,
where that Recipient Member attempted to cancel such resting quote
within certain timeframes. The content of the Report is specific to the
Recipient Member and the Report does not include any information
related to any Member \10\ other than the Recipient Member, other than
certain information about the resting quote. The Exchange restricts all
other market participants, including the Recipient Member, from
receiving another market participant's data.
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\9\ See Exchange Rule 518(a)(17).
\10\ See Exchange Rule 100.
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Resting Quote and Contra-Side Response Information. Exchange Rule
531(d)(1)(i) provides that the following information is included in the
Report regarding the resting quote and contra-side response: (A) the
time of execution of a contra-side response against a resting quote;
(B) symbol; (C) origin type (e.g., Priority Customer,\11\ Market
Maker); (D) side (buy or sell); (E) displayed price and size of the
resting quote;\12\ (F) resting liquidity identification number (a
unique reference number assigned to a new quote at the time of
receipt); and (G) trade reference number (unique reference number
assigned to a trade at the time of execution).
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\11\ See Exchange Rule 100.
\12\ The Exchange notes that the displayed price and size are
also disseminated via the Exchange's proprietary data feeds and the
Options Price Reporting Authority (``OPRA''). The Exchange also
notes that the displayed price of the resting order may be different
than the ultimate execution price. This may occur when a resting
order is displayed and ranked at different prices upon entry to
avoid a locked or crossed market.
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Execution Against the Resting Quote Information. Exchange Rule
531(d)(1)(ii) provides that the following information is included in
the Report regarding the execution of the resting quote: (A) MBBO \13\
at the time of the execution;\14\ and (B) the ABBO \15\ at the time of
execution.\16\
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\13\ The term ``MBBO'' means the best bid or offer on the
Exchange. See Exchange Rule 100.
\14\ Exchange Rule 531(d)(1)(ii)(A) further provides that if
multiple contra-side responses execute against a resting quote, only
the MBBO at the time of the execution against the first response
will be included.
\15\ The term ``ABBO'' or ``Away Best Bid or Offer'' means the
best bid(s) or offer(s) disseminated by other Eligible Exchanges
(defined in Exchange Rule 1400(g)) and calculated by the Exchange
based on market information received by the Exchange from OPRA. See
Exchange Rule 100.
\16\ Exchange Rule 531(d)(1)(ii)(B) further provides that if
multiple contra-side responses execute against a resting quote, only
the ABBO at the time of the execution against the first response
will be included.
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Purge Message(s) Sent by Recipient Member Information. Exchange
Rule 531(d)(1)(iii) provides that the following information is included
in the Report regarding the purge message(s) sent by the Recipient
Member to cancel the resting quote: (A) Recipient Member identifier;
(B) the time a purge message was received by the Exchange; (C) the time
difference between the time the first response that executes against
the resting quote was received by the Exchange and the time that the
purge message that was sent by the Recipient Member to cancel that
resting quote was received by the Exchange; (D) the time difference
between the time the purge message that was sent by the Recipient
Member to cancel the resting quote was received by the Exchange and the
time of the next response that executes against a resting quote was
received by the Exchange, after the initial purge message; (E) size and
type of each response submitted by the contra-side that executes
against the resting quote before and after the purge message is sent by
the Recipient Member; and (F) purge message identifier (a unique
identifier attached to the purge message sent by the Recipient Member).
Timeframes for Data Included in Report
Exchange Rule 531(d)(2)(i) provides that for the purge message sent
by the Recipient Member to cancel the resting quote after the response
that executes against that resting quote is received by the Exchange
pursuant to paragraph
[[Page 23481]]
(d)(1)(iii)(C) above, the Report includes the data listed in paragraph
(d)(1) of Exchange Rule 531 within 100 microseconds from the time the
resting quote was executed against to the Exchange's receipt of the
purge message. Exchange Rule 531(d)(2)(ii) provides that for the purge
message sent by the Recipient Member to cancel the resting quote before
the next response that executes against that resting quote was received
by the Exchange pursuant to paragraph (d)(1)(iii)(D) above, the Report
includes the data listed in paragraph (d)(1) of Exchange Rule 531
within 200 microseconds from the time the Exchange received the purge
message to when the Exchange receives the next execution.
Scope of Data Included in the Report
Exchange Rule 531(d)(3) provides that the Report only includes
trading data related to the Recipient Member and will not include any
other Member's trading data other than that listed in paragraphs (1)(i)
and (ii) of Exchange Rule 531(d), as described above.
Historical Data
Exchange Rule 531(d)(4) specifies that the Report contains
historical data from the previous trading day and will be available
after the end of the trading day, generally on a T+1 basis.
Proposal
The Exchange proposes to amend Exchange Rule 531(d)(2)(i) to
increase the timeframe for the time difference between the time the
first response that executes against the resting quote was received by
the Exchange and the time that the purge message that was sent by the
Recipient Member to cancel that resting quote was received by the
Exchange. In particular, the Exchange proposes to amend Exchange Rule
531(d)(2)(i) to provide that for the purge message sent by the
Recipient Member to cancel the resting quote after the response that
executes against that resting quote is received by the Exchange
pursuant to paragraph (d)(1)(iii)(C) above, the Purge Liquidity Taker
Report will include the data listed in paragraph (d)(1) of Exchange
Rule 531 within 500 microseconds (instead of 100 microseconds) from the
time the resting quote was executed against to the Exchange's receipt
of the purge message.\17\
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\17\ For example, with the proposed change, Market Maker A
provides two-sided quotes in a particular symbol and Member B, at
some point thereafter, submits a marketable order to execute against
Market Maker A's resting quotes. Within 500 microseconds (up from
100 microseconds) of submission of Member B's order, Market Maker A
sends a purge message to cancel all or a subset of the quotes.
Because Member B's order is processed at the matching engine by the
Exchange before Market Maker A's purge message, Member B's order
executes against Market Maker A's quotes. The Report would provide
Market Maker A the data points necessary for that firm to calculate
by how much time they missed canceling all or a subset of their
quotes for that particular symbol.
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The purpose of this change is for subscribers to the Report to see
additional data points regarding their interactions with the Exchange
to purge resting quotes when those quotes were executed prior to the
Exchange receiving the purge message. The proposed increased timeframe
should provide Recipient Members with a greater understanding of how
much time their purge message(s) missed canceling a resting quote after
that quote was executed. As currently provided under Exchange Rule
531(d)(2)(i), the Recipient Member would only see the information
provided in the Report if their purge message missed canceling a quote
in 100 microseconds or less from when that quote was executed. By
increasing the timeframe, Recipient Members will be able to receive the
information provided for in the Report within 500 microseconds or less
from when that quote was executed. The Exchange believes this longer
timeframe better serves the purpose of the Report by providing Market
Makers with greater opportunities to improve quote cancel success,
particularly as market conditions change throughout the day and Market
Makers seek to update their quotes accordingly.
The Exchange does not propose to amend the content, any other
timeframes or scope of the Report and will continue to make the Report
available after the end of the trading day, generally on a T+1 basis.
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.\18\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \19\ 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) \20\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
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\18\ 15 U.S.C. 78f(b).
\19\ 15 U.S.C. 78f(b)(5).
\20\ Id.
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The Exchange believes the proposed change to amend the Report to
increase the timeframe for the time difference between the time the
first response that executes against the resting quote was received by
the Exchange and the time that the purge message that was sent by the
Recipient Member to cancel that resting quote was received by the
Exchange removes impediments to and perfects the mechanism of a free
and open market. This is because the proposed increased timeframe
should further enhance the usefulness of the Report, which is designed
to aid Market Makers by improving quote cancel success, particularly as
market conditions change throughout the day and Market Makers seek to
update their quotes accordingly.
The Exchange believes that with the proposed change, the Report
continues to promote just and equitable principles of trade because it
would provide latency information in a systematized way and
standardized format to any Member that chooses to subscribe to the
Report, as proposed to be amended by the increased timeframe. The
Report will continue to not be a real-time market data product and will
provide only historical data for the previous trading day, generally on
a T+1 basis. Further, the data included in the Report, including
additional data that may be provided with the increased timeframe,
would continue to be specific to the Recipient Member regarding
incoming purge messages that failed to cancel resting quotes ahead of
an execution against those quotes.
The Report was designed for Market Makers that are interested in
gaining insight into latency in connection with their purge messages
that failed to cancel resting quotes. The Exchange believes that
increasing the timeframe is consistent with facilitating transactions
in securities, removing impediments to and perfecting the mechanism of
a free and open market and a national market system, and, in general,
protecting investors and the public interest because it provides
additional information and insight to subscribing market participants
regarding their interactions with the Exchange. More specifically, the
Report, as proposed to
[[Page 23482]]
be modified herein, will continue to provide greater visibility by
showing how much time a purge message missed canceling a quote,
particularly as market conditions change throughout the day and Market
Makers attempt to cancel and replace quotes in certain symbols.
Additionally, the proposal would not permit unfair discrimination
because the Report will continue to be available to all Exchange Market
Makers and all Market Makers that subscribe will receive the same data
points for the same timeframe, with the information specific to the
Recipient Member.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rule change will
result in any burden on competition that is not necessary or
appropriate in furtherance of the purposes of the Act, as amended.
Rather, the Exchange believes that the proposal may promote or enhance
intra-market competition because subscribers to the Report will see
additional data points regarding their interactions with the Exchange
to purge resting quotes when those quotes were executed prior to the
Exchange receiving the purge message. The proposed increased timeframe
should provide Recipient Members with a greater understanding of how
much time their purge message(s) missed canceling a resting quote after
that quote was executed. The Exchange believes this longer timeframe
may promote intra-market competition by providing Market Makers with
greater opportunities to improve quote cancel success, particularly as
market conditions change throughout the day and Market Makers seek to
update their quotes accordingly. Furthermore, this product offering is
entirely optional and is available to any Market Maker that believes
this data will be helpful for their business purposes. As such, the
Exchange does not believe this proposed rule change places any burden
on intra-market competition that is not necessary or appropriate in
furtherance of the purposes of the Act.
The Exchange also believes this proposal does not place any burden
on inter-market competition that is not necessary or appropriate in
furtherance of the purposes of the Act because other exchanges may
offer similar reports and products that contain similar data points as
the Report that are applicable to resting quotes and cancel messages of
market participants of those exchanges. Accordingly, the Exchange
believes this proposed rule change permits fair competition among
national securities exchanges.
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
Because the foregoing 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 after the date of the filing, or such
shorter time as the Commission may designate, it has become effective
pursuant to Section 19(b)(3)(A)(iii) of the Act \21\ and subparagraph
(f)(6) of Rule 19b-4 thereunder.\22\
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\21\ 15 U.S.C. 78s(b)(3)(A)(iii).
\22\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)
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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A proposed rule change filed under Rule 19b-4(f)(6) \23\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\24\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange requests
that the Commission waive the 30-day operative delay so that the
proposed rule change may become operative immediately upon filing. The
Exchange states that the proposed changes will not adversely impact
investors and will permit the Exchange to immediately offer the Report
with the increased timeframe to Market Makers. The Exchange also states
that the proposed increased timeframe should further enhance the
usefulness of the Report, which is designed to aid Market Makers by
improving quote cancel success, particularly as market conditions
change throughout the day and Market Makers seek to update their quotes
accordingly. Finally, the Exchange states that this product offering is
entirely optional and is available to any Market Maker that believes
this data will be helpful for their business purposes. For these
reasons, and because the proposal raises no new or novel legal or
regulatory issues, the Commission finds that waiver of the 30-day
operative delay is consistent with the protection of investors and the
public interest. Accordingly, the Commission waives the 30-day
operative delay and designates the proposed rule change to be operative
upon filing.\25\
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\23\ 17 CFR 240.19b-4(f)(6).
\24\ 17 CFR 240.19b-4(f)(6)(iii).
\25\ For purposes only of waiving the 30-day operative delay,
the Commission has considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
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At any time within 60 days of the filing of the 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. If the Commission
takes such action, the Commission shall institute proceedings to
determine whether the proposed rule should be approved or 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="http://www.sec.gov/rules/sro.shtml">http://www.sec.gov/rules/sro.shtml</a>); or
<bullet> Send an email to <a href="/cdn-cgi/l/email-protection#96e4e3faf3bbf5f9fbfbf3f8e2e5d6e5f3f5b8f1f9e0"><span class="__cf_email__" data-cfemail="ddafa8b1b8f0beb2b0b0b8b3a9ae9daeb8bef3bab2ab">[email protected]</span></a>. Please include
File Number SR- MIAX-2026-15 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Vanessa Countryman,
Secretary, Securities and Exchange Commission, 100 F Street NE,
Washington, DC 20549-1090.
All submissions should refer to file number SR-MIAX-2026-15. 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 also 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.
[[Page 23483]]
All submissions should refer to file number SR-MIAX-2026-15 and
should be submitted on or before May 22, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\26\
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\26\ 17 CFR 200.30-3(a)(12) and (59).
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Vanessa A. Countryman,
Secretary.
[FR Doc. 2026-08479 Filed 4-30-26; 8:45 am]
BILLING CODE 8011-01-P
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