Notice2026-18666
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Fees To Increase the Floor Market Maker Fee and Floor Broker Breakup Credit for Transactions in Non-Penny Classes
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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
September 14, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 176 (Monday, September 14, 2026)</title>
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[Federal Register Volume 91, Number 176 (Monday, September 14, 2026)]
[Notices]
[Pages 58231-58234]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-18666]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106314; File No. SR-SAPPHIRE-2026-35]
Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend
Fees To Increase the Floor Market Maker Fee and Floor Broker Breakup
Credit for Transactions in Non-Penny Classes
September 9, 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 August 31, 2026, MIAX Sapphire, LLC (``MIAX Sapphire'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') a 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 amend the MIAX Sapphire Options Exchange
Fee Schedule (``Fee Schedule'') to: (1) increase the per contract fee
assessed to Floor Market Makers for QFO and cQFO transactions in non-
Penny classes that trade against all other origins; and (2) increase
the per contract Floor Broker Breakup Credit for QFO and cQFO
transactions in non-Penny classes (all terms defined below).
The text of the proposed rule change is available on the Exchange's
website at <a href="https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings">https://www.miaxglobal.com/markets/us-options/miax-sapphire/rule-filings</a>, and at the Exchange'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 the Fee Schedule to: (1) increase
the per contract fee assessed to Floor Market Makers \3\ for Qualified
Floor Order (``QFO'') \4\ and Complex Qualified Floor Order (``cQFO'')
\5\ transactions \6\ in non-Penny classes \7\ that trade against all
other origins; and (2) increase the per contract Floor Broker \8\
Breakup Credit for QFO and cQFO transactions in non-Penny classes.
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\3\ The term ``Floor Market Maker'' means a Floor Participant of
the Exchange located on the Trading Floor who has received
permission from the Exchange to trade in options for his own
account. See the Definitions section of the Fee Schedule and
Exchange Rule 2105.
\4\ See Exchange Rule 2040.
\5\ See Exchange Rule 2040(a)(4).
\6\ A QFO or cQFO must be entered as a two-sided order, with an
initiating side and a contra side and the QFO and cQFO fees,
rebates, and applicable fee and rebate caps will apply to both sides
of the order. Further, cQFO fees and rebates are per executed side
per leg. See Fee Schedule, Section 1)c)i).
\7\ See Exchange Rule 510(c).
\8\ The term ``Floor Broker'' means an individual who is
registered with the Exchange for the purpose, while on the Trading
Floor, of accepting and handling options orders. A Floor Broker must
be registered as a Floor Participant prior to registering as a Floor
Broker. A Floor Broker may take into his own account, and
subsequently liquidate, any position that results from an error made
while attempting to execute, as Floor Broker, an order. See the
Definitions section of the Fee Schedule and Exchange Rule 2015. The
term ``Floor Participant'' means Floor Brokers as defined in Rule
2015 and Floor Market Makers as defined in Rule 2105(b). See id. and
Exchange Rule 100.
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Background of Fees and Rebates for Transactions on the Trading Floor
The Exchange assesses fees for transactions on the Trading Floor
\9\ based on origin and provides rebates in certain situations.
Currently, for Priority Customers \10\ and Professional Customers,\11\
the Exchange does not
[[Page 58232]]
assess a per contract fee for QFO and cQFO transactions in SPY/QQQ/IWM,
Penny classes (excluding SPY/QQQ/IWM), and non-Penny classes. The
Exchange assesses a $0.25 per contract fee for QFO and cQFO
transactions in SPY/QQQ/IWM, Penny classes (excluding SPY/QQQ/IWM), and
non-Penny classes for Away Market Maker,\12\ Firm, and Broker-Dealer
origins. The Exchange does not assess a fee for QFO and cQFO
transactions in SPY/QQQ/IWM, Penny classes (excluding SPY/QQQ/IWM), and
non-Penny classes for Firm and Broker-Dealer origins that are
facilitating a Priority Customer or Professional Customer order. The
Exchange assesses Floor Market Makers a fee of $0.50 per contract for
QFO and cQFO transactions in all classes that trade against all other
origins.\13\ The Exchange provides a rebate of ($0.10) per contract for
QFO and cQFO transactions in SPY/QQQ/IWM, Penny classes (excluding SPY/
QQQ/IWM), and non-Penny classes for Floor Broker origins on both the
agency and contra sides when that side is billable. The Exchange
provides a Floor Broker Breakup Credit of ($0.20) per contract for QFO
and cQFO transactions in SPY/QQQ/IWM, Penny classes (excluding SPY/QQQ/
IWM), and non-Penny classes.\14\ The Exchange also assesses lower fees
for Away Market Maker Facilitation transactions based on the monthly
percentage of order volume that is broken up and depending on whether
certain volume thresholds are met for each qualifying QFO or cQFO. The
Away Market Maker Facilitation rates apply to any Trading Floor
transaction where a Member firm Away Market Maker directs a paired
order to the Trading Floor, where the agency order is a customer of the
affiliated Member firm, and where the contra-side of the transaction is
the Away Market Maker of the Member firm.\15\
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\9\ The term ``Trading Floor'' or ``Floor'' means the physical
trading floor of the Exchange located in Miami, Florida. The Trading
Floor shall consist of one ``Crowd Area'' or ``Pit'' where Floor
Participants will be located and option contracts will be traded.
The Crowd Area or Pit shall be marked with specific visible
boundaries on the Trading Floor, as determined by the Exchange. A
Floor Broker must represent all orders in an ``open outcry'' fashion
in the Crowd Area. See the Definitions section of the Fee Schedule
and Exchange Rule 100.
\10\ The term ``Priority Customer'' means a person or entity
that (i) is not a broker or dealer in securities, and (ii) does not
place more than 390 orders in listed options per day on average
during a calendar month for its own beneficial account(s). See id.
\11\ The term ``Professional Customer'' for the purposes of the
Fee Schedule, shall mean a Public Customer that is not a Priority
Customer. See the Definitions section of the Fee Schedule. The term
``Public Customer'' means a person that is not a broker or dealer in
securities. See id.
\12\ The term ``Away Market Maker'' for the purposes of the Fee
Schedule, shall mean a non MIAX Sapphire Market Maker.
\13\ See Fee Schedule, Section 1)c)i).
\14\ The Floor Broker Breakup Credit will apply to the Floor
Broker that submits the QFO or cQFO instead of the Floor Broker
rebate for executions that trade with a Floor Market Maker. See id.
\15\ See Fee Schedule, Section 1)c)i), Away Market Maker
Facilitation Breakup Table.
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Proposal To Increase the Floor Market Maker Fee for QFO and cQFO
Transactions in Non-Penny Classes
The Exchange proposes to amend the table of QFO and cQFO fees and
rebates in section 1)c)i) of the Fee Schedule to increase the fee
assessed to Floor Market Makers for QFO and cQFO transactions in non-
Penny classes that trade against all other origins. Currently, the
Exchange assesses Floor Market Makers a fee of $0.50 per contract for
QFO and cQFO transactions in non-Penny classes that trade against all
other origins. The Exchange now proposes to assess Floor Market Makers
a fee of $0.94 per contract for QFO and cQFO transactions in non-Penny
classes that trade against all other origins. The purpose of this
change is for business and competitive reasons. The Exchange believes
that even with the proposed increased fee, the Exchange's transaction
fees for Floor Market Makers will remain competitive with the fees
assessed by other equity options exchanges that offer trading floors
for transactions by their market makers in non-penny classes when
trading against all other origins.\16\
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\16\ See Nasdaq PHLX LLC (``PHLX'') Rules, Options 7: Pricing
Schedule, Section 4 (assessing PHLX market makers a fee of $1.00 per
contract for floor transactions in non-penny symbols); NYSE American
LLC (``NYSE American'') Options Fee Schedule, Section I.A.
(assessing NYSE American market makers a fee of $0.90 per contract
for manual transactions in non-penny classes); NYSE Arca, Inc.
(``NYSE Arca'') Options Fees and Charges, page 6, Transaction Fee
for Manual Executions--Per Contract (assessing NYSE Arca market
makers a fee of $0.90 per contract for manual transactions in non-
penny classes).
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Proposal To Increase the Floor Broker Breakup Credit for QFO and cQFO
Transactions in Non-Penny Classes
Next, the Exchange proposes to amend the table of QFO and cQFO fees
and rebates in section 1)c)i) of the Fee Schedule to increase the per
contract Floor Broker Breakup Credit for QFO and cQFO transactions in
non-Penny classes. Currently, the Exchange provides a Floor Broker
Breakup Credit of ($0.20) per contract for QFO and cQFO transactions in
SPY/QQQ/IWM, Penny classes (excluding SPY/QQQ/IWM), and non-Penny
classes. The Exchange now proposes to increase the Floor Broker Breakup
Credit to ($0.25) per contract for QFO and cQFO transactions in non-
Penny classes. The purpose of this change is for business and
competitive reasons. The Exchange believes this change may encourage
additional Floor Broker liquidity in non-Penny Classes. Additional
liquidity in non-Penny classes may benefit all market participants
because it will attract additional liquidity to the Exchange by
providing more trading opportunities. Further, additional liquidity
helps contribute to a robust trading environment on the Exchange's
Trading Floor, particularly as it continues to ramp up operations,
having launched only a year ago.
* * * * *
The proposed changes are effective beginning September 1, 2026.
2. Statutory Basis
The Exchange believes that the proposed rule change is consistent
with Section 6(b) of the Act,\17\ in general, and furthers the
objectives of Section 6(b)(5) of the Act,\18\ in particular, in that it
is not designed to permit unfair discrimination among customers,
brokers, or dealers. The Exchange also believes that its proposal is
consistent with Section 6(b)(4) of the Act \19\ because it represents
an equitable allocation of reasonable dues, fees and other charges
among its Members or issuers using its facilities.
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\17\ 15 U.S.C. 78f(b).
\18\ 15 U.S.C. 78f(b)(5).
\19\ 15 U.S.C. 78f(b)(4).
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Proposal To Increase the Floor Market Maker Fee for QFO and cQFO
Transactions in Non-Penny Classes
The Exchange believes the proposal to amend the Floor Market Maker
origin to increase the fee to $0.94 per contract for QFO and cQFO
transactions in non-Penny classes is reasonable, equitably allocated,
and not unfairly discriminatory because, even with the proposed
increase, the Exchange believes the proposed fee will not discourage
Floor Market Maker order flow. The Exchange notes that even with the
proposed increase to the Floor Market Maker fee for transactions in
non-Penny classes proposed herein, the Exchange's proposed fee of $0.94
per contract for the Floor Market Maker origin in non-Penny classes
remains competitive with, and lower than (in at least one instance),
the fee charged by other equity options exchanges to their floor market
makers for transactions in non-penny classes.\20\
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\20\ See supra note 16.
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Proposal To Increase the Floor Broker Breakup Credit for QFO and cQFO
Transactions in Non-Penny Classes
The Exchange believes the proposal to increase the Floor Broker
Breakup Credit to ($0.25) per contract for QFO and cQFO transactions in
non-Penny classes is reasonable, equitably allocated and not unfairly
discriminatory because the Exchange believes this change may encourage
additional Floor Broker liquidity in non-Penny Classes. The Exchange
believes additional liquidity in non-Penny classes, to the extent the
proposed change accomplishes this goal, may benefit all Floor
Participants
[[Page 58233]]
because it will attract additional liquidity to the Exchange by
providing more trading opportunities. Further, additional liquidity
helps contribute to a robust trading environment on the Exchange's
Trading Floor, particularly as it continues to ramp up operations,
having launched only a year ago. The Exchange believes the proposed
increased Floor Broker Breakup Credit in non-Penny classes is equitable
and not unfairly discriminatory because it will apply equally to all
Floor Brokers who submit orders in non-Penny classes on the Trading
Floor and have those orders broken up by trading with a Floor Market
Maker.
The Exchange believes the Floor Broker Breakup Credit is consistent
with Section 6(b)(4) of the Act \21\ because it will continue to
encourage market participants to execute orders on the Trading Floor.
The Exchange believes that the Floor Broker Breakup Credit could
continue to improve liquidity on the Exchange to the benefit of all
market participants. The Exchange notes that providing breakup credits
to certain market participants is not new or novel. The Exchange's
affiliate, Miami International Securities Exchange, LLC (``MIAX
Options''), provides for a similar concept in its fee schedule. For
example, MIAX Options encourages market participants to participate in
PRIME and cPRIME Auctions and provides a higher breakup credit to
market participants for breakups in non-penny classes.\22\ Further, for
PRIME Auctions, MIAX Options offers a higher breakup credit in non-
penny classes for Members that submit Priority Customer orders as
compared to other origins if a certain breakup threshold is met.\23\ In
addition, the proposal is also consistent with Section 6(b)(5) of the
Act \24\ because it perfects the mechanisms of a free and open market
and a national market system and protects investors and the public
interest because it applies equally to all Floor Broker QFOs and cQFOs
which are subject to a breakup and access to the Exchange is offered on
terms that are not unfairly discriminatory.
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\21\ 15 U.S.C. 78f(b)(4).
\22\ See MIAX Options Fee Schedule, Sections 1)a)v)-vi).
\23\ See MIAX Options Fee Schedule, Section 1)a)v), including
footnote ``*''.
\24\ 15 U.S.C. 78f(b)(1) and (b)(5).
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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.
Inter-Market Competition
The Exchange believes the proposed changes do not impose an undue
burden on inter-market competition because the changes are to remain
competitive with other options exchanges that offer a trading floor.
The Exchange believes the proposed changes will help the Exchange
remain competitive in order to be able to provide market participants
with another choice of where to execute such floor transactions. The
Exchange notes that it operates in a highly competitive market in which
market participants can readily favor competing venues if they deem fee
levels at a particular venue to be excessive, or rebate opportunities
available at other venues to be more favorable. In such an environment,
the Exchange must continually adjust its fees and rebates to remain
competitive with other exchanges that offer trading floors. Because
competitors are free to modify their own fees or rebates in response to
this proposal, and because market participants may readily adjust their
order routing practices, the Exchange believes that the degree to which
fee and rebate changes in this market may impose any burden on
competition is limited.
Intra-Market Competition
In accordance with Section 6(b)(8) of the Act, the Exchange does
not believe that the proposed rule changes would impose any burden on
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. The Exchange believes the proposed change to amend
the Floor Market Maker origin to increase the fee to $0.94 per contract
for QFO and cQFO transactions in non-Penny classes will not discourage
Floor Market Maker order flow. This is because even with the change,
the Exchange's proposed fee of $0.94 per contract for the Floor Market
Maker origin in non-Penny classes remains competitive with, and lower
than (in at least one instance), the fee charged by other equity
options exchanges to their floor market makers for transactions in non-
penny classes.\25\
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\25\ See supra note 16.
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The Exchange believes the proposed change to increase the Floor
Broker Breakup Credit for QFO and cQFO transactions in non-Penny
classes will encourage the submission of additional non-Penny class
liquidity to a public exchange's Trading Floor, thereby promoting
market depth, price discovery and transparency and enhancing order
execution opportunities for all Floor Participants, especially as the
Trading Floor continues to ramp up operations since it launched in
September 2025. As a result, the Exchange believes that the proposed
changes further the Commission's goal in adopting Regulation NMS of
fostering integrated competition among orders.
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
The foregoing rule change has become effective pursuant to Section
19(b)(3)(A)(ii) of the Act,\26\ and Rule 19b-4(f)(2) \27\ thereunder.
At any time within 60 days of the filing of such 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.
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\26\ 15 U.S.C. 78s(b)(3)(A)(ii).
\27\ 17 CFR 240.19b-4(f)(2).
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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#6a181f060f47090507070f041e192a190f09440d051c"><span class="__cf_email__" data-cfemail="d1a3a4bdb4fcb2bebcbcb4bfa5a291a2b4b2ffb6bea7">[email protected]</span></a>. Please include
file number SR-SAPPHIRE-2026-35 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-SAPPHIRE-2026-35. 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
[[Page 58234]]
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-SAPPHIRE-2026-35 and
should be submitted on or before October 5, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\28\
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\28\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-18666 Filed 9-11-26; 8:45 am]
BILLING CODE 8011-01-P
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