Notice2026-11031
Self-Regulatory Organizations; Miami International Securities Exchange, LLC, MIAX PEARL, LLC, MIAX Sapphire, LLC; Order Approving Proposed Rule Changes Regarding the Adoption of Listing Criteria for Options on Commodity-Based Trusts That Hold 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
June 3, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 106 (Wednesday, June 3, 2026)</title>
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[Federal Register Volume 91, Number 106 (Wednesday, June 3, 2026)]
[Notices]
[Pages 33272-33274]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-11031]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-105578; File Nos. SR-MIAX-2026-13, SR-PEARL-2026-15,
SR-SAPPHIRE-2026-13]
Self-Regulatory Organizations; Miami International Securities
Exchange, LLC, MIAX PEARL, LLC, MIAX Sapphire, LLC; Order Approving
Proposed Rule Changes Regarding the Adoption of Listing Criteria for
Options on Commodity-Based Trusts That Hold Multiple Crypto Assets
May 29, 2026.
I. Introduction
On March 30, 2026, Miami International Securities Exchange, LLC,
MIAX PEARL, LLC, and MIAX Sapphire, LLC (each an ``Exchange,'' and
collectively, the ``Exchanges'') filed with the Securities and Exchange
Commission (``Commission''), pursuant to Section 19(b)(1) of the
Securities Exchange Act of 1934 (``Act'' or ``Exchange Act''),\1\ and
Rule 19b-4 thereunder,\2\ proposed rule changes to adopt listing
criteria for options on Commodity-Based Trusts that hold multiple
crypto assets. The proposed rule changes were published for comment in
the Federal Register on April 16, 2026.\3\ The Commission received no
comments regarding the proposed rule changes. This order approves the
proposed rule changes.
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\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ See Exchange Act Release No. 105220 (Apr. 13, 2026), 91 FR
20530 (``MIAX Notice''); Exchange Act Release No. 105221 (Apr. 13,
2026), 91 FR 20545 (``Pearl Notice''); Exchange Act Release No.
105222 (Apr. 13, 2026), 91 FR 20536 (``Sapphire Notice'').
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II. Description of the Proposed Rule Changes
Currently, Rule 402 of each Exchange allows the Exchanges to list
options on shares that represent interests in a Commodity-Based Trust
that meets the generic criteria of Exchange Rule 402, except that the
Commodity-Based Trust holds a single crypto asset, as defined in
Exchange Rule 402(i)(6)(iii), and provided that (A) the global supply
of the crypto asset held by the Commodity-Based Trust has an average
daily market value of at least $700 million over the last 12 months;
and (B) the crypto asset held by the Commodity-Based Trust underlies a
derivatives contract that trades on a market with which the Exchange
has a comprehensive surveillance sharing agreement, whether directly or
through common membership in the Intermarket Surveillance Group
(``ISG'').\4\ Each Exchange proposes to amend its Rule 402(i)(6)(iii)
to allow the Exchange to list and trade options on a Commodity-Based
Trust that holds multiple crypto assets. The proposals would allow the
Exchanges to list and trade these options without additional approval
from the Commission.\5\ Under the proposal, each crypto asset that the
Commodity-Based Trust holds must meet the criteria in Exchange Rule
402(i)(6).\6\ Accordingly, each of the Commodity-Based Trust's crypto
assets must: (A) have an average daily market value of at least $700
million over the last 12 months; and (B) underlie a derivatives
contract that trades on a market with which the Exchange has a
comprehensive surveillance sharing agreement, whether directly or
through common membership in ISG.\7\ The proposed options on qualifying
Commodity-Based Trusts also must satisfy the Exchanges' initial and
continued listing standards currently in the Exchanges' Rules
applicable to all options on exchange-traded funds (``ETFs'').\8\ Rule
402(i) requires the shares of an ETF underlying listed options to trade
on a national securities exchange and to be an ``NMS stock,'' as
defined in Rule 600 of Regulation NMS under the Exchange Act. In
addition, the shares of an ETF must meet the listing
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criteria in Exchange Rule 402(a) and (b) \9\ or Exchange Rule
402(i)(6)(i)(B).\10\
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\4\ See Exchange Rule 402(i)(6)(iii). Exchange Rule
402(i)(6)(iii) defines the term ``crypto asset'' to mean ``an asset
that is generated, issued and/or transferred using a blockchain or
similar distributive ledger technology network, including but not
limited to, assets known as `tokens,' `digital assets,' `virtual
currencies,' and `coins' and that relies on cryptographic
protocols.'' See id.
\5\ See MIAX Notice, at 20535; Pearl Notice, at 20548; Sapphire
Notice, at 20539-40.
\6\ See proposed Exchange Rule 402(i)(6)(iii).
\7\ See proposed Exchange Rule 402(i)(6)(iii). The Exchanges
state that the market value for each 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. The Exchanges state that the total supply of a crypto
asset includes all crypto assets currently issued and does not
include unissued crypto assets. See MIAX Notice, at 20532; Pearl
Notice, at 20546; Sapphire Notice, at 20537-38.
\8\ See MIAX Notice, at 20534; Pearl Notice, at 20549; Sapphire
Notice, at 20540. In its proposal, the Exchanges refer to Commodity-
Based Trust Shares as ETFs. See MIAX Notice, at 20531; Pearl Notice,
at 20545; Sapphire Notice, at 20536. The Exchanges' Rules use the
term ``exchange-traded fund'' to refer to several types of
investment products, including Commodity-Based Trusts. See Exchange
Rule 402(i).
\9\ See MIAX Notice, at 20532; Pearl Notice, at 20546; Sapphire
Notice, at 20538. Exchange Rule 402(a) states that underlying
securities with respect to which put or call options contracts are
approved for listing and trading on the Exchange must meet the
following criteria: (1) the security must be registered and be an
``NMS stock'' as defined in Rule 600 of Regulation NMS under the
Exchange Act; and (2) the security shall be characterized by a
substantial number of outstanding shares that are widely held and
actively traded. Exchange Rule 402(b) states, among other things,
that, absent exceptional circumstances, an underlying security will
not be selected unless: (1) there are a minimum of seven (7) million
shares of the underlying security which are owned by persons other
than those required to report their stock holdings under Section
16(a) of the Exchange Act; (2) there are a minimum of 2,000 holders
of the underlying security; (3) the issuer is in compliance with any
applicable requirements of the Exchange Act; (4) trading volume (in
all markets in which the underlying security is traded) has been at
least 2,400,000 shares in the preceding twelve (12) months; and (5)
either: (i) If the underlying security is a ``covered security'' as
defined under Section 18(b)(1)(A) of the Securities Act of 1933: (A)
the market price per share of the underlying security has been at
least $3.00 for the previous three (3) consecutive business days
preceding the date on which the Exchange submits a certificate to
the Clearing Corporation for listing and trading, as measured by the
closing price reported in the primary market in which the underlying
security is traded; however, (B) the requirements set forth in
(5)(i)(A) will be waived during the three days following its initial
public offering day for an underlying security having a market
capitalization of at least $3 billion based upon the offering price
of its initial public offering, and may be listed and traded
starting on or after the second business day following the initial
public offering day; or (ii) if the underlying security is not a
``covered security,'' the market price per share of the underlying
security has been at least $7.50 for the majority of business days
during the three (3) calendar months preceding the date of
selection, as measured by the lowest closing price reported in any
market in which the underlying security traded on each of the
subject days.
\10\ Exchange Rule 402(i)(6)(i)(B) states that the Exchange-
Traded Fund Shares are available for creation or redemption each
business day from or through the issuing trust, investment company,
commodity pool or other entity in cash or in kind at a price related
to net asset value, and the issuer is obligated to issue Exchange-
Traded Fund Shares in a specified aggregate number even if some or
all of the investment assets and/or cash required to be deposited
have not been received by the issuer, subject to the condition that
the person obligated to deposit the investment assets has undertaken
to deliver them as soon as possible and such undertaking is secured
by the delivery and maintenance of collateral consisting of cash or
cash equivalents satisfactory to the issuer of the Exchange-Traded
Fund Shares, all as described in the Exchange-Traded Fund Shares'
prospectus.
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Proposed Exchange Rule 403(g)(3) will allow the Exchanges to
suspend opening transactions in options on Commodity-Based Trust shares
if any crypto asset held by the Commodity-Based Trust (A) no longer has
an average daily market value of at least $700 million over the last 12
months, as determined by the Exchange on a monthly basis; or (B) no
longer underlies a derivatives contract that trades on a market with
which the Exchange has a comprehensive surveillance sharing agreement,
whether directly or through common membership in ISG. The Exchanges
state that requiring the average daily market value criterion to be met
on a monthly basis is reasonable given that the Exchanges believe that
it is unlikely that a crypto asset with an average daily market value
of at least $700 million over the previous twelve months would fail to
meet that standard as a result of trading over a relatively short
period of time.\11\
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\11\ See MIAX Notice, at 20532; Pearl Notice, at 20547; Sapphire
Notice, at 20540. For example, the Exchanges state that a crypto
asset with market capitalization of $900 million for 15 days in a
20-day trading month could lose up to 88% of its value and continue
to meet the criteria. See MIAX Notice, at 20532; Pearl Notice, at
20547; Sapphire Notice, at 20540.
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Options on Commodity-Based Trust shares also will be subject to the
Exchange Rule 403(g).\12\ Under Exchange Rule 403(g), shares of an ETF
approved for options trading pursuant to Exchange Rule 402(i) would not
meet the requirements for continued approval, and the Exchanges shall
not open for trading any additional series of option contracts of the
class covering such ETF if the shares are delisted from trading as
provided in Exchange Rule 603(b)(5) or the shares are halted or
suspended from trading on their primary market.\13\ Further, Exchange
Rule 403(g)(4) (renumbered as Exchange Rule 403(g)(5)) would allow the
Exchanges to consider suspending opening transactions in options on
Commodity-Based Trust shares if such other event occurs or condition
exists that in the opinion of the Exchange further dealing in the
options on the Exchange is inadvisable.\14\
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\12\ See MIAX Notice, at 20532; Pearl Notice, at 20546; Sapphire
Notice, at 20538.
\13\ See Exchange Rule 403(g). See also MIAX Notice, at 20532;
Pearl Notice, at 20546; Sapphire Notice, at 20538.
\14\ See MIAX Notice, at 20532; Pearl Notice, at 20546; Sapphire
Notice, at 20538.
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The Exchanges state that the proposed options on Commodity-Based
Trust shares would trade in the same manner as other ETF options on the
Exchanges and will be subject to Exchange rules that currently apply to
the listing and trading of ETF options, including Exchange rules
governing, for example, listing criteria, expirations, exercise prices,
minimum increments, position and exercise limits, margin requirements,
customer accounts and trading halt procedures.\15\ The Exchanges state
that position and exercise limits for options on Commodity-Based Trust
shares will be determined pursuant to Exchange Rules 307 and 309,
respectively.\16\
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\15\ See MIAX Notice, at 20533; Pearl Notice, at 20547; Sapphire
Notice, at 20539.
\16\ See MIAX Notice, at 20533; Pearl Notice, at 20548; Sapphire
Notice, at 20539.
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The Exchanges represent 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 Trust shares that are approved subject to Exchange Rule
402(i)(6).\17\ The Exchanges state that their existing surveillance and
reporting safeguards are designed to deter and detect possible
manipulative behavior which might potentially arise from listing and
trading options of these options on Commodity-Based Trusts that are
approved subject to Exchange Rule 402(i)(6).\18\ The Exchanges state
that they 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.\19\ In addition, the Exchanges state that they
currently lists options that would qualify for listing under proposed
Exchange Rule 402(i)(6), and that it has not identified any issues with
the listing and trading of these options.\20\
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\17\ See MIAX Notice, at 20533; Pearl Notice, at 20548; Sapphire
Notice, at 20539.
\18\ See MIAX Notice, at 20533; Pearl Notice, at 20548; Sapphire
Notice, at 20539.
\19\ See MIAX Notice, at 20533; Pearl Notice, at 20548; Sapphire
Notice, at 20539.
\20\ See MIAX Notice, at 20534; Pearl Notice, at 20548; Sapphire
Notice, at 20539. The Exchanges state that they currently lists
options on shares of the following funds: 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 MIAX Notice, at 20534 n.29; Pearl
Notice, at 20548 n.29; Sapphire Notice, at 20539 n.29.
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The Exchanges state that both the Exchanges and the Options Price
Reporting Authority (``OPRA'') have the necessary systems capacity to
handle the additional traffic associated with the listing of the
proposed options on the Commodity-Based Trust shares.\21\
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\21\ See MIAX Notice, at 20533-34; Pearl Notice, at 20548;
Sapphire Notice, at 20539.
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III. Discussion and Commission Findings
After careful review, the Commission finds that the proposed rule
changes are consistent with the requirements of the Act and the rules
and regulations thereunder applicable to a national securities
exchange.\22\ Specifically, the
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Commission finds that the proposed rule changes are consistent with
Section 6(b)(5) of the Act,\23\ which requires, among other things,
that the rules of a national securities exchange be designed to prevent
fraudulent and manipulative acts and practices, to remove impediments
to and perfect the mechanism of a free and open market, and, in
general, to protect investors and the public interest.
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\22\ In approving the proposed rule changes, the Commission has
considered the proposed rules' impact on efficiency, competition,
and capital formation. See 15 U.S.C. 78c(f).
\23\ 15 U.S.C. 78f(b)(5).
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Each Exchange proposes to amend its Rule 402(i)(6)(iii) to permit
the Exchanges to list options on shares of a Commodity-Based Trust that
holds multiple crypto assets, provided that the Commodity-Based Trust
meets certain requirements, as described above. The proposed rule
changes will allow the Exchanges to list options on shares of these
Commodity-Based Trusts without further approval from the Commission,
thereby permitting the Exchanges to list these options soon after
listing of the underlying Commodity-Based Trust shares. Permitting the
listing and trading of these options on the Exchanges will provide
investors with an additional vehicle for gaining and hedging exposure
to the underlying Commodity-Based Trust shares.
Options on shares of Commodity-Based Trusts that hold multiple
crypto assets will be subject to the same initial and continued listing
requirements for options on Commodity-Based Trusts that hold a single
crypto asset except that each crypto asset that a Commodity-Based Trust
holds must (A) have an average daily market value of at least $700
million over the last 12 months; and (B) underlie a derivatives
contract that trades on a market with which the Exchange has a
comprehensive surveillance sharing agreement, whether directly or
through common membership in ISG. The requirements in proposed Rule
402(i)(6)(iii) of each Exchange are designed to help ensure that each
of the crypto assets that a Commodity-Based Trust holds is sufficiently
liquid that the creation and redemption process for shares of the
Commodity-Based Trust will operate without disruption and that
Commodity-Based Trust shares will be available to options market makers
and other market participants that may use Commodity-Based Trust shares
to hedge their positions. The Exchanges will consider suspending
opening transactions in Commodity-Based Trust share options if the
requirements in proposed Rule 403(g) of each Exchange are no longer
satisfied.\24\
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\24\ See proposed Exchange Rule 403(g)(3).
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The Exchanges represent that the same surveillance procedures
applicable to ETF options currently listed and traded on the Exchanges
will apply to the trading of options on Commodity-Based Trust
shares.\25\ Each Exchange states that its existing surveillance and
reporting safeguards are designed to deter and detect possible
manipulative behavior that might arise from listing and trading options
on ETFs, including the listing of options on Commodity-Based Trust
shares.\26\ As discussed above, each crypto asset held by a Commodity-
Based Trust must underlie a derivatives contract that trades on a
market with which the Exchanges have a comprehensive surveillance
sharing agreement, whether directly or through common membership in
ISG.\27\ This requirement, in addition to the Exchanges' existing
surveillance procedures, should assist the Exchanges in investigating
suspected manipulations or other trading abuses in Commodity-Based
Trust share options.
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\25\ See MIAX Notice, at 20533; Pearl Notice, at 20548; Sapphire
Notice, at 20539.
\26\ See MIAX Notice, at 20533; Pearl Notice, at 20548; Sapphire
Notice, at 20539.
\27\ See proposed Exchange Rule 402(i)(6)(iii).
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IV. Conclusion
It is therefore ordered, pursuant to Section 19(b)(2) of the
Act,\28\ that the proposed rule changes (SR-MIAX-2026-13, SR-PEARL-
2026-15, SR-SAPPHIRE-2026-13), are approved.
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\28\ 15 U.S.C. 78s(b)(2).
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\29\
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\29\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-11031 Filed 6-2-26; 8:45 am]
BILLING CODE 8011-01-P
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</html>Indexed from Federal Register on June 3, 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.