Self-Regulatory Organizations; North American Derivatives Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change Relating to Rules Governing Contract Specifications for Perpetual Cash-Settled Single Stock Security Futures

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<title>Federal Register, Volume 91 Issue 190 (Friday, October 2, 2026)</title>
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[Federal Register Volume 91, Number 190 (Friday, October 2, 2026)]
[Notices]
[Pages 62786-62793]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20194]



[[Page 62786]]

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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-106521; File No. SR-OGM-2026-001]


Self-Regulatory Organizations; North American Derivatives 
Exchange, Inc.; Notice of Filing and Immediate Effectiveness of a 
Proposed Rule Change Relating to Rules Governing Contract 
Specifications for Perpetual Cash-Settled Single Stock Security Futures

 September 29, 2026.
    Pursuant to Section 19(b)(7) of the Securities Exchange Act of 1934 
(``Act''),\1\ and Rule 19b-7 under the Act,\2\ notice is hereby given 
that on September 24, 2026, the North American Derivatives Exchange 
Inc. (``Nadex'' or the ``Exchange'') filed with the Securities and 
Exchange Commission (``SEC'' or ``Commission'') the proposed rule 
change 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. 
Nadex has submitted the proposed rule change to the Commodity Futures 
Trading Commission (``CFTC'') for approval under Section 5c(c) of the 
Commodity Exchange Act (``CEA'') \3\ on September 24, 2026. The CFTC 
has not yet approved the proposed rule change.
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    \1\ 15 U.S.C. 78s(b)(7).
    \2\ 17 CFR 240.19b-7.
    \3\ 7 U.S.C. 7a-2(c).
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I. Self-Regulatory Organization's Description and Text of the Proposed 
Rule Change

    Nadex is registered with the CFTC as a designated contract market 
under the Commodity Exchange Act (``CEA''). Nadex is making this filing 
in its capacity as a national securities exchange for security futures 
products (``SFPs'') registered pursuant to the notice registration 
provisions of Section 6(g) of the Act \4\ to establish the framework 
for the listing of the SFPs it plans to list for trading.
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    \4\ 15 U.S.C. 78f(g). On September 14, 2026, Nadex, in its 
capacity as a designated contract market under the Commodity 
Exchange Act, submitted a 1-N notice filing to the Commission to 
register as a national securities exchange for security futures 
products pursuant to the notice registration provisions of Section 
6(g) of the Act. On September 16, 2026, the Commission issued a 
notice acknowledging receipt of such written notice and 
effectiveness of Nadex's notice registration as a national 
securities exchange contemporaneously with Nadex's submission of the 
1-N notice. Acknowledgement of Receipt of Notice of Registration as 
a National Securities Exchange Pursuant to Section 6(g) of the 
Securities Exchange Act of 1934 by North American Derivatives 
Exchange Inc. (Sept. 16, 2026) [Release No. 34-106396; File No. 10-
255], 91 FR 59823 (published Sept. 21, 2026).
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    Nadex is adopting new Chapter 16 (Perpetual Security Futures 
Products) governing the listing, trading, margining, clearing, 
settlement, and adjustment of cash-settled single security futures, 
including perpetual single-security futures, each of which is a 
security futures product (each, a ``SFP'' and collectively, ``SFPs''). 
Each SFP will represent one share of one eligible underlying stock. 
Unlike a security futures product that provides for a fixed expiration 
and a scheduled final settlement, the contracts that Nadex proposes to 
list are perpetual SFPs that have no fixed expiration date; the 
contract will not provide for delivery of, or convey ownership in, the 
underlying security. Each SFP will be cash settled and feature periodic 
real-time pricing mechanism adjustments, through which the contract 
will be adjusted throughout its existence to align with its underlying, 
full corporate-actions, and have no fixed expiration date and no 
scheduled final settlement. Each perpetual SFP may be terminated and 
settled in cash only upon an event specified in the Exchange's 
rulebook. Further, the Exchange hereby certifies the listing, under a 
common set of contract specifications, of cash-settled SFPs on a range 
of eligible equity securities that meet the applicable Nadex listing 
standards (including, by way of illustration, large-cap securities such 
as Alphabet Inc. (``GOOGL''), <a href="http://Amazon.com">Amazon.com</a> Inc. (``AMZN''), Apple Inc. 
(``AAPL''), Meta Platforms, Inc. (``META''), Microsoft Corporation 
(``MSFT''), Nvidia Corporation (``NVDA''), and Tesla Inc. (``TSLA''), 
among others). The specific instruments to be listed will be published 
on Nadex's website or by notice. The Exchange intends to offer SFPs 
exclusively on its electronic trading platform.
    The text of the proposed rule changes is included in Exhibit 4.

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 self-regulatory organization 
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 self-regulatory organization 
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 adopt contract specifications governing 
cash-settled single stock security futures, referred to in this filing 
as ``SFPs.'' Each SFP is a perpetual future on one share of its 
underlying stock, with periodic real-time pricing mechanism cash 
adjustments that keep the contract aligned with the underlying, full 
corporate-action handling across the tenor, no fixed expiration date 
and no scheduled final settlement. Further, the Exchange hereby 
certifies the listing, under the common contract specifications 
described in this filing, of cash-settled SFPs on a range of eligible 
equity securities that meet the applicable Nadex listing standards 
including, by way of illustration, large-cap securities such as 
Alphabet Inc. Class A Common Stock (``GOOGL''), <a href="http://Amazon.com">Amazon.com</a> Inc. 
(``AMZN''), Apple Inc. (``AAPL''), Meta Platforms, Inc. (``META''), 
Microsoft Corporation (``MSFT''), Nvidia Corporation (``NVDA''), and 
Tesla Inc. (``TSLA''), among others. The specific instruments to be 
listed will be published on Nadex's website or by notice, and a general 
summary of the terms and conditions of SFPs is below.
SFPs--Summary Terms and Conditions
    Contract Size--1 share (one unit) of the underlying stock. (Rule 
16.02(d))
    Quotation Specification--Prices are quoted in U.S. dollars to two 
decimal places, with a minimum tick of $0.01 and a tick value of $0.01 
for a one-share contract. (Rule 16.02(e))
    Position Limits--Position limits will be established and applied in 
accordance with CFTC Regulation 41.25(b)(3) and the Nadex Rulebook; 
generally, the position limit for SFPs will be 2,500,000 contracts, and 
any applicable limit or accountability level will be set forth in the 
applicable contract specifications or on Nadex's website. This 
2,500,000 contract limit with a 1 share contract size is consistent 
with other currently listed security futures, which have a 25,000 
contract limit applicable to a 100 share contract for securities with 
less than 20 million in estimated deliverable shares. (Rule 16.02(g), 
(h))
    Underlying Index Price--Median of the national best bid, national 
best offer and last sale price published by the securities information 
processor (``SIP'') for the underlying (and during non-regular market 
hours, several different

[[Page 62787]]

SEC-approved after hour market trading centers and inclusive of a 
secondary backup data vendor for SIP and non-regular market hours 
data). (Rule 16.03(a))
    Trading Schedule--Continuous trading, subject to the trading hours, 
holiday schedules, underlying-market availability, and other 
limitations permitted by the Nadex Rulebook and applicable listing 
standards; the current product specifications contemplate trading 
pursuant to Nadex Rule 5.18. Notwithstanding Rule 5.18, SFP trading 
occurs 24 hours a day, 5 days a week. (Rule 16.02(c))
    No Expiration and No Final Settlement--Perpetual SFPs have no fixed 
expiration date and no scheduled final settlement and a perpetual SFP 
may be terminated and settled in cash only upon an event specified in 
the Rulebook and applicable contract specifications. Convergence 
between the price of a Contract and the price of the Underlying 
Security is effected through the funding mechanism described in Rule 
16.14 or the applicable contract specification. (Rule 16.02(b)) Nadex 
plans to use the final settlement price.
    Real-time Pricing Mechanism--Periodic real-time pricing mechanism 
cash adjustments, currently contemplated at 00:00, 08:00, and 16:00 
UTC, will be exchanged between long and short holders to keep each 
SFP's price aligned with its underlying stock, as specified in Rule 
16.14 or the applicable contract specification. When funding is 
positive, longs pay shorts; when negative, shorts pay longs.
    Trading Halts--Trading in a SFP will be halted at all times that a 
regulatory halt has been instituted for the underlying security, as 
provided in Rule 16.02(l) and CFTC Regulation 41.25(b)(2),\5\ and may 
be halted or otherwise restricted under the Nadex Rulebook and 
applicable listing standards. (Rule 16.02(l); Rule 16.12)
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    \5\ 17 CFR 41.25(b)(2).
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    Termination--Upon termination pursuant to the Rule 16.15, the 
termination price for a perpetual SFP shall be the official opening 
price of the underlying security on its primary listing exchange on the 
Termination Date (as defined below) or, in the event the market for the 
underlying security closes without any trading activity that would 
permit the calculation of the termination price, such termination price 
will be calculated using the most recent regular session price or the 
next available opening price. This complies with SEC Rule 240.6h-1(b) 
and CFTC Regulation 41.25(c).\6\ The SFP will be terminated in USD cash 
with no physical delivery. Terminating positions will be settled 
pursuant to a three-tier waterfall approach. (Rule 16.08(a) and (b)).
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    \6\ 17 CFR 240.6h-1(b); 17 CFR 41.25(c).
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    Daily Settlement--Open positions are settled twice each business 
day. A midday settlement at 12:00 ET and an end-of-day settlement of 
17:00 ET (business days follow the exchange holiday calendar). At each 
daily settlement, the position's average open price is reset to the 
settlement price, so any unrealized profit or loss becomes realized. 
Realized profit is then available for withdrawal. Open positions will 
be settled daily pursuant to a three-tier waterfall approach. (Rule 
16.08(a)).
    Termination Date--The date on which a participant terminates or 
otherwise exits its SFP position in accordance with Rule 16.15.
    Compliance with Listing Standards--The Exchange will list only SFPs 
based on eligible equity securities that satisfy the applicable Nadex 
listing standards, including the requirements in Rule 16.02 and the 
initial and maintenance listing standards in Rules 16.04 and 16.05. The 
specific instruments and their contract specifications will be 
published on Nadex's website or by notice.
    The proposed rule changes are described below.
    Rule 16.01 provides that Chapter 16 applies to the listing, 
trading, clearing, pricing, settlement, and adjustment of any Contract 
listed by Nadex that is a perpetual security future. The rule further 
provides that, except as expressly provided in Chapter 16, all other 
Rules of Nadex apply to perpetual security futures. Any change in 
instructions, order, ruling, directive, or law issued or enacted by any 
court or agency of the Federal Government of the United States that 
conflicts with the Rules contained in this Chapter shall take 
precedence, immediately become a part of these Rules, and be effective 
for all currently traded and newly listed security futures.
    Rule 16.02 provides that each security future based on a single 
equity security (each, a ``Single Stock Future'' or an ``SSF'') shall 
be based on an underlying single equity security listed in Schedule A 
of Chapter 16 (the ``Underlying Security''), which satisfies the 
requirements set forth in CFTC Rule 41.21(a) and the initial and 
maintenance listing standards in Rules 16.04 and 16.05, as may be 
determined from time to time by the Exchange.
    Rule 16.02 specifies that each SSF shall have no specified dated 
tenor, shall remain listed and tradable until otherwise terminated 
pursuant to the Rulebook, shall be cash-settled based on its opening 
price, and will not expire. SSF trading occurs 24 hours a day, 5 days a 
week, and SSFs will not be traded during holidays and other periods 
when the underlying markets for the securities are not open; however, 
trading during the market close is permitted based on available 
liquidity in the order book. SSF trading is subject to any applicable 
halt, suspension, Emergency Rule, or product-specific restriction, and 
SSFs settle on a daily basis during market hours.
    Rule 16.02 further provides that each SSF represents a contract for 
1 share of the Underlying Security, with a minimum trade size of 0.01 
contract. Prices shall be quoted in U.S. dollars per share to two 
decimal places, with a minimum price fluctuation of $0.01 per share. 
SSFs are not subject to daily price limits unless otherwise specified 
by Nadex or by notice. Position limits for each SSF shall be 2,500,000 
contracts, subject to the cap prescribed by CFTC Regulation 
41.25(b)(3).
    Rule 16.03 defines ``Underlying Index Price'' to mean the median of 
the national best bid, national best offer, and last sale price 
published by the securities information processor (``SIP'') for the 
Underlying Security (and during non-regular market hours, several 
different SEC-approved after hour market trading centers and inclusive 
of a secondary backup data vendor for SIP and non-regular market hours 
data).
    Rule 16.04 \7\ sets out the standards pursuant to which the 
Exchange will list Contracts. The proposed listing standards require, 
among other things, that the Underlying Security must be a common stock 
registered under Section 12 of the Securities Exchange Act of 1934, 
listed on a national securities exchange or traded as an NMS security, 
and must have at least seven million publicly owned shares. Further, 
the Underlying Security must have at least 2,000 security holders.
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    \7\ The Exchange notes that Rule 16.04(a)(5), (6), (7), and (9) 
are marked as ``Reserved.''
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    Rule 16.04 also includes interpretations addressing the application 
of these requirements to Restructure Securities, including a Look-Back 
Test that permits the Exchange to consider the trading volume and 
market price history of the Original Equity Security prior to the ex-
date of the Restructuring Transaction, subject to specified conditions.
    Rule 16.05 establishes maintenance standards for the continued 
listing of SSFs. Under the maintenance standards, the Underlying 
Security must remain

[[Page 62788]]

registered under Section 12 of the Exchange Act; must have at least 
6,300,000 publicly owned shares outstanding; must have at least 1,600 
shareholders; must have had a minimum average daily value of 
transactions of at least $200 million for the prior calendar quarter 
(or $1 billion for securities listed for less than a quarter); and must 
have a minimum market capitalization of at least $50 billion. The 
market price per share of the Underlying Security must not have closed 
below $3.00 on the previous trading day.
    Rule 16.06 provides that SSF orders shall be matched and allocated 
in accordance with Nadex 's Trading System functionalities and Chapter 
5. Crossing transactions and pre-execution communications for SSFs must 
comply with Nadex 's order handling, exposure, and crossing 
requirements under Chapter 5.
    Rule 16.07 provides that each SSF shall be cleared by the 
Clearinghouse. Upon acceptance for clearing, Nadex 's and Members' 
rights and obligations shall be as provided under the applicable 
clearing arrangements, and novation shall occur in accordance with the 
rules of the Clearinghouse. Delivery shall be by cash settlement in 
accordance with the rules and procedures of the Clearinghouse; no 
physical delivery of the Underlying Security shall occur.
    Rule 16.08 provides that the daily settlement price of an SSF shall 
be determined based upon a three-tier waterfall approach: (1) a 1-
minute VWAP of the futures contract; (2) a 1-minute TWAP of the futures 
contract midpoint of the Bid/Ask; and (3) index net change, where no 
transaction in the SSF contract occurs within the applicable window and 
no sampling point is complete, the daily settlement price shall be the 
prior daily settlement price adjusted by the net change in the 
Underlying Index Price over the intervening period. The termination 
price shall be based on the official opening price of the Underlying 
Security on the Termination Date.
    Rule 16.10 \8\ provides that, throughout the full tenor of an SSF, 
Nadex may adjust or settle SSFs in accordance with the Clearinghouse 
based on its judgment as to what is appropriate for the protection of 
investors and the public interest. Adjustments to SSFs to account for 
corporate actions or other events affecting the Underlying Security--
including dividends, stock splits, reverse splits, spin-offs, mergers, 
consolidations, reorganizations, delistings, and other events--shall be 
made in accordance with the standards set out in the Rule. As a general 
rule, there will be no adjustments to reflect ordinary cash dividends 
or distributions.
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    \8\ The Exchange notes that Rule 16.09 is marked as 
``Reserved.''
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    Rule 16.11 provides that order entry, modification, cancellation, 
and recordkeeping for SSFs shall comply with Chapter 5 and CFTC 
Regulation 1.31. The rule establishes cross-market surveillance 
procedures to detect, investigate, and deter manipulation, insider 
trading, and other prohibited conduct. Certain persons, including 
directors and officers of the issuer of the Underlying Security and 
persons in possession of material non-public information, are 
prohibited from trading in SSFs.
    Rule 16.12 provides that Nadex may halt trading in SSFs to prevent 
or reduce the risk of price distortions or market disruptions, 
including where the underlying market is halted or subject to a limit 
state. Nadex will coordinate regulatory trading halts between the 
Exchange and the markets on which any Underlying Security is traded.
    Rule 16.13 provides that each Member with access to the Trading 
System to trade SSFs must be registered with the CFTC as an FCM and 
registered with the Securities and Exchange Commission as either a 
broker-dealer under Section 15(b)(1) of the Exchange Act or as a 
notice-registered broker-dealer under Section 15(b)(11) of the Exchange 
Act. Trading in SSFs is subject to Nadex's market surveillance under 
Chapter 9, and violations are subject to disciplinary action.
    Rule 16.14 provides that the Funding Rate for perpetual SSFs shall 
be a periodic cash adjustment exchanged directly between Customers of 
long and short open positions at each Funding Time. When the Funding 
Rate is positive, Customers with long positions shall pay Customers 
with short positions; when the Funding Rate is negative, Customers with 
short positions shall pay Customers with long positions. Funding Times 
shall be 00:00, 08:00, and 16:00 UTC, or such other times as Nadex may 
specify by notice. The Funding Rate is calculated using a formula that 
incorporates the Premium (the time-weighted average premium of the SSF 
over its Underlying Index Price), an Interest component, Asset 
Multiplier, Cap, and Floor parameters, with an outer clamp function 
limiting the Funding Rate within the range established by the Floor and 
Cap.
    Rule 16.14 further provides that perpetual SSFs shall be cash 
settled in U.S. dollars, and that the Exchange shall list only one 
perpetual SSF per Underlying Security at any given time. The perpetual 
SSF shall have no expiration date and no final settlement date. Margin 
calculations shall follow the Exchange's three-tier approach, with 
margin at least 15.05% of the position value, or such other amount as 
specified in the applicable product specifications or as required by 
CFTC Regulations 41.42 through 41.49 (without exceptions for offsets 
permitted under those regulations).
    Rule 16.15 provides that the procedures for termination of each SSF 
shall be set out in the final contract specifications.
    Rule 16.16 sets forth provisions regarding margin requirements. 
Rule 16.16(a) provides that customer margin shall be established at 
levels no lower than those prescribed by SEC Rule 242.403 \9\ and CFTC 
Regulation 41.45 \10\ or any successor regulations. Rule 16.16(a) 
elaborates by establishing the requisite margin level for each long or 
short position in a perpetual security future product at 15.05% of the 
current market value of such security futures contract, or such other 
requirement as may be established by the SEC and CFTC for purposes of 
SEC Rule 242.403(b)(1) \11\ and CFTC Regulation 41.45(b)(1).\12\
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    \9\ 17 CFR 242.403.
    \10\ 17 CFR 41.45.
    \11\ 17 CFR 242.403(b)(1).
    \12\ 17 CFR 41.45(b)(1).
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    Rule 16.16(b)(1) identifies ``exempted persons'' and ``market 
makers'' as non-customers for purposes of the proposed rule amendments. 
Those non-customers are, therefore, exempt from the application of such 
provisions. Exempted persons are specifically identified by reference 
to applicable SEC and CFTC Regulations.
    SEC Rule 242.400(c)(2)(v) \13\ and CFTC Regulation 41.42(c)(2)(v) 
\14\ permit exchanges to adopt rules containing specified requirements 
for security futures dealers, on the basis of which the financial 
relations between security futures intermediaries, on the one hand, and 
qualifying security futures dealers, on the other, are excluded from 
the margin requirements for perpetual security futures. Rules so 
adopted by an exchange must meet the criteria set forth in Section 
7(c)(2)(B) of the Act.\15\ Nadex proposes a market maker exclusion in 
its Rule 16.16(b)(2) consistent with the requirements of those 
provisions. To qualify for the market maker exclusion, a person must be 
a member of Nadex

[[Page 62789]]

and registered as a dealer with the SEC under Section 15(b) of the 
Act.\16\ A proposed market maker must also hold itself out as willing 
to buy and sell perpetual security futures for its own account on a 
regular or continuous basis. The proposed market maker exclusion 
provides three alternative ways for a person to satisfy this 
requirement. Under the first alternative, the market maker must (1) 
provide continuous two-sided quotations throughout the trading day for 
all perpetual security futures contracts representing a meaningful 
proportion of the total trading volume of security futures contracts on 
the Exchange, subject to relaxation during unusual market conditions as 
determined by Nadex (such as a fast market in either a perpetual 
security futures contract or a security underlying a perpetual security 
futures contract) at which times the market maker must use its best 
efforts to quote continuously and competitively; and (2) when providing 
quotations, quote with a maximum bid/ask spread of no more than the 
greater of $0.20 or 150% of the bid/ask spread in the primary market 
for the security underlying each perpetual security futures contract. 
Beginning on the 181st calendar day after the commencement of trading 
of security futures contracts on the Exchange, a ``meaningful 
proportion of the total trading volume of security futures contracts on 
the Exchange from time to time'' shall mean a minimum of 20% of such 
trading volume.
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    \13\ 17 CFR 242.400(c)(2)(v).
    \14\ 17 CFR 41.42(c)(2)(v).
    \15\ 15 U.S.C. 78g(c)(2)(B).
    \16\ 15 U.S.C. 78o(b).
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    Under the second alternative, the market maker must (1) respond to 
at least 75% of the requests for quotation for all perpetual security 
futures contracts representing a meaningful proportion of the total 
trading volume of perpetual security futures contracts on the Exchange, 
subject to relaxation during unusual market conditions as determined by 
the Exchange (such as a fast market in either a perpetual security 
futures contract or a security underlying a perpetual security futures 
contract) at which times the Market Maker must use its best efforts to 
quote competitively; and (2) when responding to requests for quotation, 
quote within five seconds with a maximum bid/ask spread of no more than 
the greater of $0.20 or 150% of the bid/ask spread in the primary 
market for the security underlying each security futures contract. As 
with the first alternative, beginning on the 181st calendar day after 
the commencement of trading of security futures contracts on the 
Exchange, a ``meaningful proportion of the total trading volume of 
security futures contracts on the Exchange from time to time'' shall 
mean a minimum of 20% of such trading volume.
    Under the third alternative, the market maker is assigned to a 
group of perpetual security futures contracts listed on the Exchange 
that is either unlimited in nature (``Unlimited Assignment'') or is 
assigned to no more than 20% of the security futures contracts listed 
on the Exchange (``Limited Assignment''). In addition, this alternative 
provides that: (a) At least 75% of the market maker's total trading 
activity in Exchange perpetual security futures contracts is in its 
assigned perpetual security futures contracts, measured on a quarterly 
basis; (b) during at least 50% of the trading day, the market maker has 
bids or offers in the market that are at or near the best market, 
except in unusual market conditions (such as a fast market in either a 
perpetual security futures contract or a security underlying a 
perpetual security futures contract), with respect to at least 25% (in 
the case of an Unlimited Assignment) or at least one (in the case of a 
Limited Assignment) of its assigned security futures contracts; and (c) 
the first two requirements are satisfied on at least 90% (in the case 
of an Unlimited Assignment) or 80% (in the case of a Limited 
Assignment, or in the case of either an Unlimited or Limited Assignment 
but where the Exchange is listing four or fewer security futures 
contracts) of the trading days in each calendar quarter.
    Under the proposed revisions, market makers are required to 
maintain books and records including trading statements and other 
financial records that would evidence compliance with these standards. 
This recordkeeping requirement includes, without limitation, such 
trading statements and other financial records as may be necessary 
specifically to verify compliance. Failure on the part of a market 
maker to comply with these standards may result in revocation of 
security futures dealer status or other sanctions provided under 
Exchange Rules.
    Rule 16.16(d)(1) \17\ identifies the types of margin that a 
security futures intermediary may accept from a customer. Consistent 
with SEC Rule 242.404(b) \18\ and CFTC Regulation 41.46(b),\19\ 
acceptable types of margin are limited to: deposits of cash, margin 
securities (subject to specified restrictions), exempted securities, 
any other assets permitted under Regulation T of the Board of Governors 
of the Federal Reserve System to satisfy a margin deficiency in a 
securities margin account, and any combination of the foregoing. 
Proposed Rule 16.16(d)(1) further provides that the different types of 
eligible margin are to be valued in accordance with the applicable 
principles set forth in SEC Rules 242.404(c) \20\ and 242.404(e) \21\ 
and CFTC Regulations 41.46(c) \22\ and 41.46(e).\23\ Proposed Rule 
16.16(d)(2) provides that a security futures intermediary shall not 
accept as margin from any customer securities that have been issued by 
that customer or an affiliate of that customer unless the intermediary 
files a petition with and receives permission from the Exchange for 
such purpose. Proposed Rule 16.16(d)(3) provides that all assets 
deposited by a customer to meet margin requirements must be and remain 
unencumbered by third-party claims against that customer.
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    \17\ The Exchange notes new Rule 16.16(c) is marked as 
``Reserved.''
    \18\ 17 CFR 242.404(b).
    \19\ 17 CFR 41.46(b).
    \20\ 17 CFR 242.404(c).
    \21\ 17 CFR 242.404(e).
    \22\ 17 CFR 41.46(c).
    \23\ 17 CFR 41.46(e).
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    Rule 16.16(e)(1) requires a security futures intermediary to take 
the deduction required with respect to an underfunded account in 
computing its net capital under applicable SEC and CFTC Regulations if 
the customer has failed to comply with a required margin call within a 
reasonable period of time. This requirement is consistent with SEC Rule 
242.406(a) \24\ and CFTC Regulation 41.48(a).\25\ Further, Rule 
16.16(e)(2) requires the liquidation of an account where there is a 
liquidating deficit, in accordance with SEC Rule 242.406(b) \26\ and 
CFTC Regulation 41.48(b).\27\
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    \24\ 17 CFR 242.406(a).
    \25\ 17 CFR 41.48(a).
    \26\ 17 CFR 242.406(b).
    \27\ 17 CFR 41.48(b).
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2. Statutory Basis
    Section 6(h)(3) of the Act \28\ contains listing standards and 
conditions for trading SFPs. The Exchange believes that the proposed 
amendments to Chapter 16 are consistent with Section 6(h)(3),\29\ and 
that they are designed to prevent fraudulent and manipulative acts and 
practices, to promote just and equitable principles of trade, and in 
general to protect investors and the public interest. Below is a 
summary of each requirement or condition under Section 6(h)(3) of the 
Act, followed by a brief explanation of how Nadex would comply with it, 
whether by particular

[[Page 62790]]

provisions in Nadex's listing standards or otherwise.
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    \28\ 15 U.S.C. 78f(h)(3).
    \29\ Id.
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    Clause (A) of Section 6(h)(3) of the Act \30\ requires that any 
security underlying a SFP be registered pursuant to Section 12 of the 
Act.\31\ This requirement is addressed by Nadex Rule 16.04(a)(2). 
Further, under Rule 16.02(j), contract specifications will be published 
on Nadex's website.
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    \30\ 15 U.S.C. 78f(h)(3)(A).
    \31\ 15 U.S.C. 78l.
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    Clause (B) of Section 6(h)(3) of the Act \32\ requires that a 
market on which a physically settled SFP is traded, have arrangements 
in place with a registered clearing agency for the payment and delivery 
of the securities underlying the SFP. This requirement is applicable 
only to physically delivered security futures products. Nadex is only 
offering cash-settled SFPs, and, therefore, the requirement in Section 
6(h)(3) of the Act is not germane to the proposed products.
---------------------------------------------------------------------------

    \32\ 15 U.S.C. 78f(h)(3)(B).
---------------------------------------------------------------------------

    Clause (C) of Section 6(h)(3) of the Act \33\ provides that listing 
standards for SFPs must be no less restrictive than comparable listing 
standards for options traded on a national securities exchange or 
national securities association registered pursuant to Section 15A(a) 
of the Act.\34\ Nadex believes that its listing standards for perpetual 
SFPs are no less restrictive than the sample listing standards 
(``Sample Listing Standards'') included in the Commission's Staff Legal 
Bulletin No. 15,\35\ which were ``sample security futures listing 
standards, which the Division of Market Regulation considers to be 
comparable to listing standards for options,'' \36\ except that they:
---------------------------------------------------------------------------

    \33\ 15 U.S.C. 78f(h)(3)(C).
    \34\ 15 U.S.C. 78o-3(a).
    \35\ Division of Market Regulation: Staff Legal Bulletin No. 15 
(Sept. 5, 2001), available at <a href="https://www.sec.gov/interps/legal/mrslb15.htm">https://www.sec.gov/interps/legal/mrslb15.htm</a>.
    \36\ Id.
---------------------------------------------------------------------------

    <bullet> Provide for the trading of perpetual, cash-settled single 
security futures contracts for trading as SFPs;
    <bullet> Include more stringent listing requirements, as described 
below; and
    <bullet> Provide for a real-time pricing mechanism intended to 
align the SFP's price with the price of the underlying security.
    Nadex's initial listing standards require that each Underlying 
Security satisfy the following requirements set forth in Rule 16.04(a):
    (1) It must be a common stock.
    (2) It must be registered under Section 12 of the Act,\37\ and its 
issuer must be in compliance with any applicable requirements of the 
Act.
---------------------------------------------------------------------------

    \37\ 15 U.S.C. 78l.
---------------------------------------------------------------------------

    (3) It must be listed on a national securities exchange or traded 
through the facilities of a national securities association and 
reported as a ``national market system'' security as set forth in Rule 
11Aa3-1 under the Act (``NMS security'').\38\
---------------------------------------------------------------------------

    \38\ 15 U.S.C. 78k-1; 17 CFR 240.601.
---------------------------------------------------------------------------

    (4) There must be at least seven million shares or receipts 
evidencing the Underlying Security outstanding that are owned by 
persons other than those required to report their security holdings 
pursuant to Section 16(a) of the Act.\39\
---------------------------------------------------------------------------

    \39\ 15 U.S.C. 78p(a)
---------------------------------------------------------------------------

    (5) There must be at least 2,000 security holders.
    (6) The Exchange will not list for trading any SSF where the 
Underlying Security is a Restructure Security that is not yet issued 
and outstanding, regardless of whether the Restructure Security is 
trading on a ``when issued'' basis or on another basis that is 
contingent upon the issuance or distribution of securities. In 
addition, the proposed SFPs are perpetual with no expirations, which 
are operationally feasible for Nadex.
    The Exchange also may prohibit any opening purchase transactions in 
SFPs already trading to the extent it deems such action necessary or 
appropriate, unless the underlying security meets each of the 
maintenance listing requirements for SFPs in Rule 16.05, which meet the 
maintenance listing standards provided for in the Commission's Staff 
Legal Bulletin No. 15.
    Specifically, the maintenance listing standards in Rule 16.05(a) 
require that the Underlying Security meet each of the following:
    (1) It must be registered under Section 12 of the Act.\40\
---------------------------------------------------------------------------

    \40\ 15 U.S.C. 78l.
---------------------------------------------------------------------------

    (2) There are at least 6,300,000 shares outstanding that are owned 
by persons other than those who are required to report their security 
holdings under Section 16(a) of the Act.\41\
---------------------------------------------------------------------------

    \41\ 15 U.S.C. 78p(a)
---------------------------------------------------------------------------

    (3) There are at least 1,600 shareholders.
    (4) It must have had a minimum average daily value of transactions 
of at least $200 million for the prior calendar quarter, except where 
the underlying security has been listed for trading for less than a 
quarter, in which case the underlying security must have had a minimum 
average daily value of transactions of at least $1 billion over the 
period traded during the calendar quarter.
    (5) It must have a minimum market capitalization of at least $50 
billion.
    (6) The market price per share or receipt of the Underlying 
Security has not closed below $3.00 on the previous trading day to the 
expiration day of the nearest expiring SSF contract on the Underlying 
Security. The market price per share of the Underlying Security will be 
measured by the closing price reported in the primary market in which 
the Underlying Security traded.
    Further, Rule 16.14's real-time pricing mechanism with respect to 
SFPs keeps the applicable SFP aligned with its underlying in the same 
manner. The real-time pricing mechanism recreates the put-call parity 
that holds equity options to their underlying by requiring an explicit 
interest-rate (financing) component in the rate, which mirrors the 
cost-of-carry term built into option prices. While an option's time 
decay is slow until expiration approaches, the real-time pricing 
mechanism is applied every eight hours for the entire life of the SFP, 
so potential value drift is addressed promptly and repeatedly.
    For the reasons discussed herein, notwithstanding specified 
differences between the Sample Listing Standards and Nadex's listing 
standards, Nadex believes that the latter are no less restrictive than 
comparable listing standards for exchange-traded options.
    Clause (D) of Section 6(h)(3) of the Act \42\ requires that each 
SFP be based upon common stock and such other equity securities as the 
Commission and the CFTC jointly determine appropriate. This requirement 
is addressed in Rule 16.04(a)(1).
---------------------------------------------------------------------------

    \42\ 15 U.S.C. 78f(h)(3)(D).
---------------------------------------------------------------------------

    Clause (E) of Section 6(h)(3) of the Act \43\ requires that each 
SFP be cleared by a clearing agency that has in place provisions for 
linked and coordinated clearing with other clearing agencies that clear 
SFPs. This provision is inapplicable. The SEC and CFTC have not adopted 
rules implementing this part of the statute, and no other clearing 
agency currently clears the proposed cash-settled SFPs. Section 6(h)(7) 
of the Act \44\ defers this requirement until the ``compliance date,'' 
as defined in that Section. Nadex, in its capacity as a registered 
derivatives clearing organization, will serve as the clearinghouse for 
SFPs traded through the Exchange's facilities.
---------------------------------------------------------------------------

    \43\ 15 U.S.C. 78f(h)(3)(E).
    \44\ 15 U.S.C. 78f(h)(7).
---------------------------------------------------------------------------

    Clause (F) of Section 6(h)(3) of the Act \45\ requires that only a 
broker or dealer subject to suitability rules comparable to those of a 
national

[[Page 62791]]

securities association registered pursuant to Section 15A(a) of the Act 
\46\ effect transactions in an SFP. An intermediary acting on behalf of 
customers trading SFPs must be registered with the CFTC as a futures 
commission merchant (``FCM'') and registered or notice registered with 
the SEC as a broker-dealer. Any such intermediary that is fully 
registered as a broker-dealer will be a member of FINRA, which is a 
national securities association registered pursuant to Section 15A(a) 
of the Act,\47\ and will thus be subject to FINRA's suitability rules. 
In addition, all Nadex clearing members authorized to handle SFPs and 
their correspondents are bound by the applicable sales practice rules 
of National Futures Association (``NFA''), which is a national 
securities association. As such, the sales practice rules of NFA are 
generally comparable to those of a national securities association 
registered pursuant to Section 15A(a) of the Act.\48\ Moreover, the 
application of NFA sales practice rules is extended beyond the Nadex 
clearing membership to the extent that NFA Bylaw 1101 provides that 
``[n]o Member may carry an account, accept an order or handle a 
transaction in commodity futures contracts for or on behalf of any non-
Member of NFA.'' \49\
---------------------------------------------------------------------------

    \45\ 15 U.S.C. 78f(h)(3)(F).
    \46\ 15 U.S.C. 78o-3(a).
    \47\ 15 U.S.C. 78o-3(a).
    \48\ 15 U.S.C. 78o-3(a).
    \49\ NFA Bylaw 1101(a).
---------------------------------------------------------------------------

    Clause (G) of Section 6(h)(3) of the Act \50\ requires that each 
SFP be subject to the prohibition against dual trading in Section 4j of 
the CEA.\51\ This prohibition applies to a contract market operating an 
electronic trading system if such market provides participants with a 
time or place advantage or the ability to override a predetermined 
matching algorithm. The Exchange intends to offer SFPs on Nadex 
exclusively on its electronic trading platform, as described further in 
Rule 16.11. Because the conditions described above do not exist in 
Nadex's electronic trading platform system, the Nadex Rulebook contains 
no specific rule relating to dual trading in an electronic forum.
---------------------------------------------------------------------------

    \50\ 15 U.S.C. 78f(h)(3)(G).
    \51\ 7 U.S.C. 6j
---------------------------------------------------------------------------

    Further, the prohibition of dual trading in SFPs under Regulation 
41.27,\52\ adopted pursuant to Section 4j(a) of the CEA,\53\ applies to 
a contract market operating an electronic trading system if such market 
provides participants with a time or place advantage or the ability to 
override a predetermined matching algorithm. The Exchange intends to 
offer SFPs on Nadex exclusively on its electronic trading platform. 
Because those conditions do not exist in Nadex's electronic trading 
platform system, the Nadex Rulebook contains no specific rule relating 
to dual trading in an electronic forum.
---------------------------------------------------------------------------

    \52\ 17 CFR 41.27.
    \53\ 7 U.S.C. 6j(a).
---------------------------------------------------------------------------

    Clause (H) of Section 6(h)(3) of the Act \54\ provides that trading 
in a SFP must not be readily susceptible to manipulation of the price 
of such SFP, nor to causing or being used in the manipulation of the 
price of any underlying security, option on such security, or option on 
a group or index including such securities. Nadex believes that its 
listing and contract specifications in Rule 16.02 are designed to 
ensure that Nadex SFPs and the underlying securities would not be 
readily susceptible to price manipulation. Nadex intends initially to 
list SFPs on highly liquid securities as measured by average daily 
trading volume, which must meet the listing standards outlined in Rules 
16.04 and 16.05. In addition, Rule 5.19 (m) of the Nadex Rulebook 
states that no participant ``shall engage in any activity that violates 
any anti-fraud provision, any anti-manipulation provision, or any other 
provision of the CEA or the Commission's Regulations'' and Chapter 9 of 
the Nadex Rulebook (Rule Enforcement) will generally apply to all 
transactions in SFPs.
---------------------------------------------------------------------------

    \54\ 15 U.S.C. 78f(h)(3)(H).
---------------------------------------------------------------------------

    In addition, under Nadex Rule 5.19(x), ``No Participant shall, 
intentionally or recklessly, directly or indirectly, engage or attempt 
to engage in any fraudulent act or intentionally or recklessly, 
directly or indirectly, use or employ, or attempt to use or employ, any 
manipulative device, scheme or artifice to defraud, deceive, trick or 
mislead or intentionally or recklessly, directly or indirectly, engage, 
or attempt to engage in any other activity prohibited by CFTC 
Regulation 180.1(a), or (b) engage, or attempt to engage, in any other 
activity prohibited by CEA section 9(a)(2), in each case of (a) and (b) 
in connection with or related to any activities on the Exchange or 
clearinghouse.'' The position limit standards set forth in Rule 
16.02(g) are also designed to prevent market manipulation with respect 
to SFPs, as the position limits will be no greater than those 
prescribed by CFTC Regulation 41.25.\55\
---------------------------------------------------------------------------

    \55\ 17 CFR 41.25.
---------------------------------------------------------------------------

    With respect to termination prices, Rule 16.08(b) establishes how 
the termination price is determined for cash-settled SFPs. For each 
SFP, the Termination Price will be the official opening price of the 
underlying security on its primary listing exchange on the expiration 
date. If the official opening price is unavailable because the 
underlying market did not open, remained halted, or otherwise did not 
publish an opening price, the applicable rule will provide for a 
reasonable alternative determination, such as the last preceding 
closing price, the next available opening price, an average of prices 
during an appropriate period, or another reasonable measure as required 
by SEC Rule 6h-1(b) and CFTC Regulation 41.25(c).
    Rule 16.10 provides that the Clearinghouse will implement 
adjustments to SFPs when corporate actions or similar events affect the 
underlying security, pursuant to its established rules and procedures 
for the entire existence of the SFP position. Depending on the event, 
adjustments may include modifying the contract multiplier, unit of 
trading, settlement price, underlying security, or other contract 
terms.
    Consistent with the Exchange's insider-trading controls, Nadex 
proposes that the following persons be prohibited from trading in the 
relevant SFPs: (1) any person who is a director or officer subject to 
Section 16 of the Act of a corporation that is the issuer of an 
underlying security; and (2) any person in possession of material non-
public information regarding such issuer (Rule 16.11(i)). Nadex Rule 
5.19(u) already prohibits an Insider with access to material non-public 
information regarding an Underlying, or a person able to influence the 
outcome of an Underlying, from attempting to enter into or entering 
into any trade, directly or indirectly, in the relevant Contracts, and 
prohibits soliciting or inducing another person to disclose material 
non-public information.
    Clause (I) of Section 6(h)(3) of the Act \56\ requires that 
procedures be in place for coordinated surveillance amongst the market 
on which a SFP is traded, any market on which any security underlying 
the SFP is traded, and other markets on which any related security is 
traded to detect manipulation and insider trading. The Exchange has 
surveillance procedures in place to detect manipulation on a 
coordinated basis with other markets. In particular, Nadex is an 
affiliate member of the Intermarket Surveillance Group (``ISG'') and is 
party to an affiliate agreement and an agreement to share market 
surveillance and regulatory information

[[Page 62792]]

with the other ISG members. Under Rule 16.11(f), Nadex will maintain 
and implement written procedures for coordinated cross-market 
surveillance to detect, investigate, and deter manipulation, insider 
trading, and other prohibited conduct in connection with trading in any 
SFP listed on the Exchange. Finally, Nadex Rule 3.4(b) notes that Nadex 
may provide any information about any Member in connection with 
information sharing agreements or other contractual, regulatory or 
legal provisions, in addition to sharing information with foreign 
regulatory or self-regulatory bodies, law enforcement authorities, or 
judicial tribunals.
---------------------------------------------------------------------------

    \56\ 15 U.S.C. 78f(h)(3)(I).
---------------------------------------------------------------------------

    Clause (J) of Section 6(h)(3) of the Act \57\ requires that a 
market on which a SFP is traded have in place audit trails necessary or 
appropriate to facilitate the coordinated surveillance referred to in 
the preceding paragraph. Under Rule 16.11(g), Nadex will establish an 
audit trail to facilitate coordinated surveillance among the Exchange 
and any market on which any underlying security is traded. The Exchange 
relies upon its Compliance Department and its highly trained staff to 
actively monitor market participants and their trading practices and to 
enforce compliance with Nadex rules. Nadex Compliance Department staff 
is organized into Compliance and Market Surveillance Groups. The 
Exchange's trading system will capture all audit trail data for trading 
of SFPs, which is maintained in accordance with Core Principle 10 in 
CEA Section 5(d)(10) \58\ and CFTC Regulations 38.550,\59\ 38.551 \60\ 
and 38.552.\61\ The Exchange retains this highly granular audit trail 
for a minimum of 5 years, as required by CFTC Regulation 1.31(b).\62\
---------------------------------------------------------------------------

    \57\ 15 U.S.C. 78f(h)(3)(J).
    \58\ 7 U.S.C. 7(d)(10).
    \59\ 17 CFR 38.550.
    \60\ 17 CFR 38.551.
    \61\ 17 CFR 38.552.
    \62\ 17 CFR 1.31(b).
---------------------------------------------------------------------------

    Nadex Compliance is responsible for enforcing the trading practice 
rules of the Exchange through detection, investigation, and prosecution 
of those who may attempt to violate those Nadex Rules. Further, Nadex 
Compliance is responsible for handling customer complaints, ensuring 
the integrity of the Exchange's audit trail, and administering an 
arbitration program for the resolution of disputes. Nadex Compliance 
employs investigators, attorneys, trading floor investigators, data 
analysts, and a computer programming and regulatory systems design 
staff.
    Nadex Compliance Department staff investigates possible misconduct 
and, when appropriate, initiates disciplinary action. Rule 16.13 and 
Chapter 9 of the Nadex Rulebook address the Exchange's disciplinary 
process. Further, per Nadex Rule 3.4(a), the Exchange requires its 
members to ``cooperate promptly and fully'' with Nadex, ``its agents, 
any appropriate Self-Regulatory Organization, any appropriate 
Government Agency, and the Commission in any investigation, call for 
information, inquiry, audit, examination, or proceeding.
    Nadex Rule 5.5 requires that certain information be recorded with 
respect to each order, including: (1) order direction (i.e., buy or 
sell); (2) order type (e.g., Limit Order or Market Order); (3) duration 
of the order (e.g., Fill or Kill, Immediate or Cancel, Good `Til 
Cancel); (4) the Series of Contract; (5) the limit price at which the 
Trading Member wants to buy or sell the Contract, in the case of Limit 
Orders; (6) the number of Contracts the Trading Member want to buy or 
sell; (7) the Tolerance Protection in the case of Market Orders With 
Protection; and (8) the user identifier for the Trading Member. As 
described above, Nadex Rulebook's ``Monitoring the Market'' rule 
requires Nadex's Trading System to record and store, for a period of 
not less than 5 years in a searchable, read-only database, all data 
entered into the Trading System, including the Participant's identity 
and the information in Rule 5.5.
    Clause (K) of Section 6(h)(3) of the Act \63\ requires that a 
market on which an SFP is traded have in place procedures to coordinate 
trading halts between such market and any market on which any security 
underlying the SFP is traded and other markets on which any related 
security is traded. Rule 16.02(l) would provide, in accordance with 
Regulation 41.25(b)(2) of CEA,\64\ that ``[t]rading of an [SFP] shall 
be halted at all times when a regulatory halt has been instituted for 
the Underlying Security.'' In addition, Rule 16.12(c) provides that 
Nadex will coordinate regulatory trading halts between the Exchange and 
the markets on which any Underlying Security is traded.
---------------------------------------------------------------------------

    \63\ 15 U.S.C. 78f(h)(3)(K).
    \64\ 17 CFR 41.25(b)(2).
---------------------------------------------------------------------------

    Clause (L) of Section 6(h)(3) of the Act \65\ requires that the 
margin requirements for a SFP comply with the regulations prescribed 
pursuant to Section 7(c)(2)(B) of the Act.\66\ Rule 16.16 provides for 
a minimum margin requirements of not less than 15.05% of the current 
market value of the security futures,\67\ in accordance with Section 
6(h)(3) of the Act and 17 CFR 242.403 and CFTC Regulation 41.45.
---------------------------------------------------------------------------

    \65\ 15 U.S.C. 78f(h)(3)(L).
    \66\ 15 U.S.C. 78g(c)(2)(B).
    \67\ 17 CFR 242.403; 17 CFR 41.45.
---------------------------------------------------------------------------

    Thus, Nadex believes that its proposed margin rules are consistent 
with the requirements of the Act.
    For the reasons described above, Nadex believes that its proposal 
submitted herewith satisfies the requirements set forth in Section 
6(h)(3) of the Act.\68\ The Exchange also believes that its proposed 
rule changes are consistent with Section 6(b) of the Act,\69\ in 
general, and furthers the objectives of Section 6(b)(5) of the Act,\70\ 
in particular, in that it is designed to remove impediments to and 
perfect the mechanism for a free and open market and a national market 
system, and, in general, to protect investors and the public interest.
---------------------------------------------------------------------------

    \68\ 15 U.S.C. 78f(h)(3).
    \69\ 15 U.S.C. 78f(b).
    \70\ 15 U.S.C. 78f(b)(5).
---------------------------------------------------------------------------

B. Self-Regulatory Organization's Statement on Burden on Competition

    Nadex 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 proposed rule changes will 
simply allow Nadex to list certain security futures products. Nothing 
in the filing restricts or impedes another exchange from offering 
security futures products for trading subject to its compliance with 
applicable regulatory requirements under the Act, CEA, and respective 
rules of the Commission and CFTC governing security futures products.

C. Self-Regulatory Organization's Statement on Comments on the Proposed 
Rule Change Received From Members, Participants, or Others

    The Exchange has not solicited, and does not intend to solicit, 
comments on this proposed rule change. The Exchange has not received 
any unsolicited written comments from members or other interested 
parties.

III. Date of Effectiveness of the Proposed Rule Change and Timing for 
Commission Action

    The proposed rule change would become effective upon approval by 
the CFTC pursuant to CFTC Regulations.
    Within 60 days of the date of effectiveness of the proposed rule 
change, the Commission, after consultation with the CFTC, may summarily 
abrogate the proposed rule

[[Page 62793]]

change and require that the proposed rule change be refiled in 
accordance with the provisions of Section 19(b)(1) of the Act.\71\
---------------------------------------------------------------------------

    \71\ 15 U.S.C. 78s(b)(1).
---------------------------------------------------------------------------

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#3143445d541c525e5c5c545f4542714254521f565e47"><span class="__cf_email__" data-cfemail="a9dbdcc5cc84cac6c4c4ccc7dddae9daccca87cec6df">[email&#160;protected]</span></a>. Please include 
File Number SR-OGM-2026-001 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-OGM-2026-001. 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="http://www.sec.gov/rules/sro.shtml">http://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-OGM-2026-001 and should 
be submitted on or before October 23, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\72\
---------------------------------------------------------------------------

    \72\ 17 CFR 200.30-3(a)(73).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-20194 Filed 10-1-26; 8:45 am]
BILLING CODE 8011-01-P


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