Notice2026-10242
Self-Regulatory Organizations; Nasdaq Texas, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Position and Exercise Limits Rules
Primary source
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Published
May 22, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 99 (Friday, May 22, 2026)</title>
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[Federal Register Volume 91, Number 99 (Friday, May 22, 2026)]
[Notices]
[Pages 30358-30359]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-10242]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105519; File No. SR-NasdaqTX-2026-024]
Self-Regulatory Organizations; Nasdaq Texas, LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Amend
Position and Exercise Limits Rules
May 19, 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 May 11, 2026, Nasdaq Texas, LLC (``Nasdaq Texas'' or ``Exchange'')
filed with the Securities and Exchange Commission (``SEC'' or
``Commission'') the 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 Options 9, Section 13, Position
Limits, Options 9, Section 15, Exercise Limits, and Options 6C, Section
3, Margin Requirements, to make technical, non-substantive revisions to
these Rules.
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/nasdaqtx/rulefilings">https://listingcenter.nasdaq.com/rulebook/nasdaqtx/rulefilings</a>, and at the principal office of the Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
In its filing with the Commission, the Exchange included statements
concerning the purpose of and basis for the proposed rule change and
discussed any comments it received on the proposed rule change. The
text of these statements may be examined at the places specified in
Item IV below. The Exchange has prepared summaries, set forth in
sections A, B, and C below, of the most significant aspects of such
statements.
A. Self-Regulatory Organization's Statement of the Purpose of, and
Statutory Basis for, the Proposed Rule Change
1. Purpose
The Exchange proposes to amend Options 9, Section 13, Position
Limits, Options 9, Section 15, Exercise Limits, and Options 6C, Section
3, Margin Requirements, to make technical, non-substantive revisions to
these Rules. Each change is described below.
Position Limits
The Exchange proposes to amend its rules relating to position
limits at Options 9, Section 13, Position Limits, and exercise limits
at Options 9, Section 15, Exercise Limits. The Exchange proposes to
remove the following rule text at Options 9, Section 13(a),
``notwithstanding the foregoing options contracts overlying
SPDR[supreg] S&P 500[supreg] ETF Trust (SPY) shall have a position
limit of 3,600,000 contracts on the same side of the market.'' Further,
the Exchange proposes to remove the following text at Options 9,
Section 15(a), ``notwithstanding the foregoing options contracts
overlying SPDR[supreg] S&P 500[supreg] ETF Trust (SPY) shall have an
exercise limit of 3,600,000 contracts on the same side of the market.''
Currently, Options 9, Section 13(a) and Options 9, Section 15(a)
provide that no Options Participant shall make, for any account in
which it has an interest or for the account of any customer, an opening
transaction on any exchange or exercise a long position in any options
contract if the Options Participant has reason to believe that as a
result of such transaction the Options Participant or its customer
would, acting alone or in concert with others, directly or indirectly
exceed the applicable position or exercise limit fixed from time to
time by the Cboe Exchange, Inc. (``Cboe'') for any options contract
traded on NTX Options and Cboe. The Exchange notes that Cboe's position
and exercise limit rules currently provide that SPY options shall have
a position limit and exercise limit of 3,600,000 contracts on the same
side of the market.\3\ The Exchange proposes to remove the rule text
referencing the position and exercise limits of 3,600,000 contracts for
SPY options because they are unnecessary. The proposed amendments are
non-substantive and do not amend the current position or exercise limit
for SPY options.
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\3\ See Cboe Rule 8.30 at Interpretations and Policies .07.
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Margin
Currently, Options 6C, Section 3, Margin Requirements, provides at
subparagraph (a) that a Participant or associated person must be bound
by the initial and maintenance margin requirements of either the
Chicago Board Options Exchange (``CBOE'') or the New York Stock
Exchange (``NYSE'') as the same may be in effect from time to time. The
Exchange proposes to update Cboe's name from ``Chicago Board Options
Exchange'' to ``Cboe Exchange, Inc.''
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\4\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\5\ in particular, in that it is 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.
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\4\ 15 U.S.C. 78f(b).
\5\ 15 U.S.C. 78f(b)(5).
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The Exchange's proposal to remove rule text at Options 9, Section
13(a) and Options 9, Section 15(a) related to position and exercise
limits for SPY Options of 3,600,000 contracts on the same side of the
market is consistent with the Act because the proposed amendments are
non-substantive and do not amend the current position or exercise limit
for SPY options. Currently, Options 9, Section 13(a) and Options 9,
Section 15(a) provide that no Options Participant shall make, for any
account in which it has an interest or for the account of any customer,
an opening transaction on any exchange or exercise a long position in
any options contract if the Options Participant has reason to
[[Page 30359]]
believe that as a result of such transaction the Options Participant or
its customer would, acting alone or in concert with others, directly or
indirectly exceed the applicable position or exercise limit fixed from
time to time by the Cboe for any options contract traded on NTX Options
and Cboe. The Exchange notes that Cboe's position and exercise limit
rules currently provide that SPY options shall have a position limit
and exercise limit of 3,600,000 contracts on the same side of the
market.\6\ Therefore, the Exchange proposes to remove the rule text
referencing the position and exercise limits of 3,600,000 contracts for
SPY options because they are unnecessary.
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\6\ See Cboe Rule 8.30 at Interpretations and Policies .07.
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The amendment to Options 6C, Section 3 to update Cboe's name is a
non-substantive amendment.
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.
The Exchange's proposal to remove rule text in Options 9, Section
13(a) and Options 9, Section 15(a) regarding the position and exercise
limit for SPY Options and amend Cboe's name in Options 6C, Section 3
does not burden intra-market competition because the amendments are
non-substantive. Further, the Exchange does not believe that the
proposed amendments will impose any burden on inter-market competition
because the proposed position and exercise limits, as amended, continue
to align with the rules of other options exchanges. Also, the proposed
name change at Options 6C, Section 3 conforms to Cboe's current name
and is non-substantive.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
No written comments were either solicited or received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
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 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 \7\ and Rule 19b-
4(f)(6) thereunder.\8\
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\7\ 15 U.S.C. 78s(b)(3)(A).
\8\ 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 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 change 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="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#e89a9d848dc58b8785858d869c9ba89b8d8bc68f879e"><span class="__cf_email__" data-cfemail="becccbd2db93ddd1d3d3dbd0cacdfecddbdd90d9d1c8">[email protected]</span></a>. Please include
file number SR-NasdaqTX-2026-024 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-NasdaqTX-2026-024. 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-NasdaqTX-2026-024 and should be
submitted on or before June 12, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\9\
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\9\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-10242 Filed 5-21-26; 8:45 am]
BILLING CODE 8011-01-P
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