Notice2026-16096
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Amend Options 3, Section 1 and Options 3C, Section 4(d)
Primary source
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Published
August 7, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 151 (Friday, August 7, 2026)</title>
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[Federal Register Volume 91, Number 151 (Friday, August 7, 2026)]
[Notices]
[Pages 51203-51205]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-16096]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106033; File No. SR-MRX-2026-32]
Self-Regulatory Organizations; Nasdaq MRX, LLC; Notice of Filing
and Immediate Effectiveness of Proposed Rule Change To Amend Options 3,
Section 1 and Options 3C, Section 4(d)
August 4, 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 July 27, 2026, Nasdaq MRX, LLC (``MRX'' or ``Exchange'') filed with
the Securities and Exchange Commission (``SEC'' or ``Commission'') the
proposed rule change as described in Items I, II, and III, 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 (i) amend Options 3, Section 1 to make
clear that certain eligible equity and index options are eligible for
trading during extended trading hours pursuant to Options 3C, and (ii)
amend Options 3C, Section 4(d) to specify that orders will not be
routable during the Early ETH Session (as defined below).
The text of the proposed rule change is available on the Exchange's
website at <a href="https://listingcenter.nasdaq.com/rulebook/mrx/rulefilings">https://listingcenter.nasdaq.com/rulebook/mrx/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 Commission recently approved the Exchange's proposed rule
change to adopt Extended Trading Hours \3\ for certain multi-listed
equity options and certain index options.\4\ Pursuant to that proposal,
the Exchange adopted Options 3C, Section 4(d), which provides that
orders are not routable during ETH. As such, all orders during ETH
would be required to be entered as Do-No-Route (``DNR'') orders and may
be repriced pursuant to Options 3, Section 5(d).\5\ The Exchange now
proposes to replace the references to ``ETH'' with ``the Early ETH
Session'' in Options 3C, Section 4(d) to reflect that orders will not
be routable during the Early ETH Session.
[[Page 51204]]
As such, all orders during the Early ETH Session will be required to be
entered as Do-Not-Route (``DNR'') orders and may be repriced pursuant
to Options 3, Section 5(d). As adopted, the definition of ETH
encompasses both the Early ETH Session and the Extended Close. With the
changes proposed herein, the Exchange will allow orders to be routable
during the Extended Close to align with how the Exchange currently
allows orders in certain designated ETF options to trade and be
routable on the Exchange until 4:15 p.m.
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\3\ ``Extended Trading Hours'' or ``ETH'' means the trading
hours outside of regular trading hours (``Regular Trading Hours'' or
``RTH'') of 9:30 a.m. ET to 4:00 p.m. ET (or 4:15 p.m. ET for
certain products pursuant to Options 3, Section 1) and covers: (1)
the early extended trading hours session (``Early ETH Session''),
which is conducted from 7:30 a.m. Eastern Time (``ET'') to 9:25 a.m.
ET; and (2) the extended close (``Extended Close''), where trading
will continue until 4:15 p.m. ET. See Options 3C, Sections 1(b),
2(a), and 2(b).
\4\ See Securities Exchange Act Release No. 105785 (June 26,
2026), 91 FR 40061 (July 1, 2026) (SR-MRX-2026-11).
\5\ Options 3, Section 5(d) provides that an order would not be
executed at a price that trades through another market or displayed
at a price that would lock or cross another market and that an order
that is designated by a Member as non-routable would be re-priced in
order to comply with applicable trade-through and locked and crossed
markets restrictions. If, at the time of entry, an order that the
entering party has elected not to make eligible for routing would
cause a locked or crossed market violation or would cause a trade-
through violation, it would be re-priced to the current national
best offer (for bids) or the current national best bid (for offers)
as non-displayed, and displayed at one minimum price variance above
(for offers) or below (for bids) the national best price.
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The Exchange also proposes a clarifying change in new paragraph (f)
of Options 3, Section 1 (Hours of Business) to make clear that certain
equity and index options may be designated as eligible for trading
during Extended Trading Hours, pursuant to Options 3C.
2. Statutory Basis
The Exchange believes that its proposal is consistent with Section
6(b) of the Act,\6\ in general, and furthers the objectives of Section
6(b)(5) of the Act,\7\ in particular, in that it is designed to promote
just and equitable principles of trade, 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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\6\ 15 U.S.C. 78f(b).
\7\ 15 U.S.C. 78f(b)(5).
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Specifically, the Exchange believes the proposed rule change
promotes just and equitable principles of trade and removes impediments
to and perfects the mechanism of a free and open market because it
clarifies the scope of when orders will not be routable during ETH. As
adopted, Options 3C, Section 4(d) requires that all orders during ETH
be entered as DNR orders. Because the definition of ETH encompasses
both the Early ETH Session and the Extended Close, the current rule
text does not reflect the Exchange's intent to permit routing during
the Extended Close. By narrowing the scope to the Early ETH Session
only, the Exchange is aligning the treatment of orders during the
Extended Close with how the Exchange currently permits orders in
certain designated ETF options to trade and be routed until 4:15 p.m.
ET. Permitting routing during the Extended Close promotes consistency
and avoids subjecting market participants to disparate routing
treatment during the same time period between 4:00-4:15 p.m. ET.
The Exchange further believes that the proposed clarifying changes
to add new paragraph (f) to Options 3, Section 1 to make clear that
certain equity and index options may be designated as eligible for
trading during Extended Trading Hours removes impediments to a free and
open market, and, in general, protects investors and the public
interest by promoting transparency and clarity in the Exchange's
rulebook. Specifically, the proposed changes ensure that the Exchange's
rules provide market participants with a clear, consolidated framework
of the Exchange's trading hours.
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 not necessary or appropriate in
furtherance of the purposes of the Act. The Exchange does not believe
that the proposed rule change will impose any burden on intramarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act because the proposed changes will apply in the same
manner for all eligible options listed for trading during ETH, and all
eligible options listed for trading during ETH will be open for trading
for all market participants at the same time. The Exchange does not
believe that the proposed rule change will impose any burden on
intermarket competition that is not necessary or appropriate in
furtherance of the purposes of the Act because the proposed changes
merely relate to clarifying the scope of order routability during ETH
and adding a cross reference to ETH trading in the Exchange's trading
hours rules.
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)(iii) of the Act \8\ and
subparagraph (f)(6) of Rule 19b-4 thereunder.\9\
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\8\ 15 U.S.C. 78s(b)(3)(A)(iii).
\9\ 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 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 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#7301061f165e101c1e1e161d0700330016105d141c05"><span class="__cf_email__" data-cfemail="eb999e878ec6888486868e859f98ab988e88c58c849d">[email protected]</span></a>. Please include
file number SR-MRX-2026-32 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-MRX-2026-32. 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-MRX-2026-32 and should be submitted on
or before August 28, 2026.
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For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\10\
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\10\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-16096 Filed 8-6-26; 8:45 am]
BILLING CODE 8011-01-P
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