Notice2026-20302
Self-Regulatory Organizations: MIAX PEARL, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend Risk Controls for Equity Members in Connection With the Upcoming Expansion by Other National Securities Exchanges and the Appliable Securities Information Processors of Their Hours to 23 Hours per Day, 5 Days per Week
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
October 5, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
<html>
<head>
<title>Federal Register, Volume 91 Issue 191 (Monday, October 5, 2026)</title>
</head>
<body><pre>
[Federal Register Volume 91, Number 191 (Monday, October 5, 2026)]
[Notices]
[Pages 63365-63368]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20302]
-----------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106554; File No. SR-PEARL-2026-41]
Self-Regulatory Organizations: MIAX PEARL, LLC; Notice of Filing
and Immediate Effectiveness of a Proposed Rule Change To Amend Risk
Controls for Equity Members in Connection With the Upcoming Expansion
by Other National Securities Exchanges and the Appliable Securities
Information Processors of Their Hours to 23 Hours per Day, 5 Days per
Week
September 30, 2026.
Pursuant to the provisions of 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 September 25, 2026, MIAX PEARL, LLC (``MIAX
Pearl'' or the ``Exchange''),\3\ filed with the Securities and Exchange
Commission (``Commission'') a proposed rule change as described in
Items I and II below, which Items have been prepared by the Exchange.
The Commission is publishing this notice to solicit comments on the
proposed rule change from interested persons.
---------------------------------------------------------------------------
\1\ 15 U.S.C. 78s(b)(1).
\2\ 17 CFR 240.19b-4.
\3\ All references to ``MIAX Pearl'' in this filing are to MIAX
Pearl Equities, the equities trading facility of MIAX PEARL, LLC.
See Exchange Rule 1901.
---------------------------------------------------------------------------
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
The Exchange proposes amend its existing risk controls for Equity
Members \4\ trading on the Exchange in connection with the upcoming
expansion by other national securities exchanges and the appliable
Securities Information Processors (``SIPs'') of their hours to 23 hours
per day, 5 days per week.\5\
---------------------------------------------------------------------------
\4\ The term ``Equity Member'' is a Member authorized by the
Exchange to transact business on MIAX Pearl Equities. See Exchange
Rule 1901.
\5\ See Securities Exchange Act Release Nos. 105779 (June 26,
2026), 91 FR 40082 (July 1, 2026) (Order approving SR-CTA/CQ-2026-
01); 105780 (June 26, 2026), 91 FR 40058 (July 1, 2026) (Order
approving Fifty-Fifth Amendment to the Nasdaq UTP Plan); 105587 (May
29, 2026); 91 FR 33238 (June 3, 2026) (SR-CboeEDGX-2026-19); 105532
(May 21, 2026); 91 FR 31509 (May 27, 2026) (SR-NYSEArca-2026-53);
890235 (November 27, 2024); 89 FR 97072 (``24X Approval Order'');
105199 (April 10, 2026); 91 FR 20222 (April 15, 2026) (SR-Nasdaq-
2025-109).
---------------------------------------------------------------------------
The text of the proposed rule change is available on the Exchange's
website at <a href="https://www.miaxglobal.com/markets/us-equities/pearl-equities/rule-filings">https://www.miaxglobal.com/markets/us-equities/pearl-equities/rule-filings</a>, and at MIAX Pearl'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, MIAX Pearl 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. MIAX Pearl 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
To help Equity Members manage their risk, the Exchange currently
offers Limit Order Price Protection and other risk controls that
authorize the Exchange to take automated action if a designated limit
for an Equity Member is breached. Such risk controls provide Equity
Members with enhanced abilities to manage their risk when trading on
the Exchange. The Exchange now proposes to amend Limit Order Price
Protection under Exchange Rule 2614(a)(1)(ix) and Trading Collars under
Exchange Rule 2618(b)(1) to specify which reference prices would be
used in connection with the upcoming expansion by other national
securities exchanges and the appliable SIPs of their hours to 23 hours
per day, 5 days per week. The proposal would allow the Exchange to
maintain its status quo under 23/5 trading and continue to use the same
last trade price as a reference price similar to today by limiting the
times at which the last trade is received outside of Regular Trading
Hours \6\ to the times between 4:00 a.m. and 9:30 a.m. Eastern Time and
4:00 p.m. and 8:00 p.m. Eastern Time, as described below.
---------------------------------------------------------------------------
\6\ Further, a Limit Order in a security that is subject to a
trading halt becomes first eligible to trade when the halt is lifted
and continuous trading has resumed. See Exchange Rule
2614(a)(1)(ix)(C).
---------------------------------------------------------------------------
Limit Order Price Protection
Limit Order Price Protection is set forth under Exchange Rule
2614(a)(1)(ix) and provides for the cancellation of Limit Orders \7\
priced too far away from a specified reference price at the time the
order first becomes eligible to trade. A Limit Order entered
[[Page 63366]]
before Regular Trading Hours \8\ that becomes eligible to trade during
Regular Trading Hours will be subject to Limit Order Price Protection
at the time Regular Trading Hours begins.
---------------------------------------------------------------------------
\7\ A Limit Order means an order to buy or sell a stated amount
of a security at a specified price or better. See Exchange Rule
2614(a)(1).
\8\ The term ``Regular Trading Hours'' means the time between
9:30 a.m. and 4:00 p.m. Eastern Time. See Exchange Rule 1901.
---------------------------------------------------------------------------
Exchange Rule 2614(a)(1)(ix)(A) provides that a Limit Order to buy
(sell) will be rejected if it is priced at or above (below) the greater
of a specified dollar value and percentage away from the PBO for Limit
Orders to buy, the PBB \9\ for Limit Orders to sell. Exchange Rule
2614(a)(1)(ix)(A) further provides that if the PBBO is unavailable, a
Limit Order to buy (sell) will be rejected if it is priced at or above
(below) the greater of a specified dollar and percentage away from the
most current of the following: 1. the consolidated last sale price
disseminated during the Regular Trading Hours on trade date; or 2. the
last trade price for the security on trade date that occurred outside
of Regular Trading Hours (Form T, as communicated by the relevant SIP)
on trade date which other than for the Form T designation would have
been considered a valid last sale price; or 3. the prior day's Official
Closing Price identified as such by the primary listing exchange,
adjusted to account for events such as corporate actions and news
events.
---------------------------------------------------------------------------
\9\ ``PBB'' shall mean the national best bid that is a Protected
Quotation, the term ``PBO'' shall mean the national best offer that
is a Protected Quotation, and the term ``PBBO'' shall mean the
national best bid and offer that is a Protected Quotation.
``Protected Quotation'' shall mean a quotation that is a Protected
Bid or Protected Offer. See Exchange Rule 1901.
---------------------------------------------------------------------------
The Exchange operates three separate trading sessions between 4:00
a.m. Eastern Time and 8:00 p.m. Eastern Time. These are the Early
Trading Session, which operates from 4:00 a.m. to 9:30 a.m. Eastern
Time, the ``Regular Trading Session'' that operates from the completion
of the Opening Process or Contingent Open as defined in Exchange Rule
2615 to 4:00 p.m. Eastern Time, and finally the ``Late Trading
Session'' that operates from 4:00 p.m. to 8:00 p.m. Eastern Time.\10\
Currently, Exchange Rule 2614(a)(1)(ix)(A)2 provides that the reference
price may be the last trade price for the security on trade date that
occurred outside of Regular Trading Hours (Form T, as communicated by
the relevant SIP) on trade date which other than for the Form T
designation would have been considered a valid last sale price. This
reference price will be used when it is more current than the PBBO and
the consolidated last sale price disseminated during the Regular
Trading Hours on trade date. As currently written, the Exchange could
use a last trade price disseminated at any time outside of Regular
Trading Hours, which would include not only the Exchange's Early and
Late Trading Sessions, but also the upcoming overnight trading session,
which will operate from 9:00 p.m. to 4:00 a.m. Eastern Time.
---------------------------------------------------------------------------
\10\ See Exchange Rule 1901. The Exchange does not currently
intend to expand its trading hours beyond 4:00 a.m. and 8:00 p.m.
Eastern Time.
---------------------------------------------------------------------------
Today, due to the trading hours of the Exchange and other national
securities exchanges being limited to 4:00 a.m. and 8:00 p.m. Eastern
Time, the Exchange would use a last trade price received outside of
Regular Trading Hours received during its Early or Late Trading
Sessions only. At this time, the Exchange intends to keep this status
quo and only use last trade prices disseminated when the Exchange is
operating a trading session and not a last trade price disseminated
during the overnight trading session, which is anticipated to be from
9:00 p.m. to 4:00 a.m. Eastern Time as a reference price. The Exchange
believes the upcoming overnight trading session has the potential to
involve material trading risks, including the possibility of lower
liquidity, high volatility, changing prices, unlinked markets, an
exaggerated effect from news announcements, wider spreads and other
relevant risks. The Exchange is concerned that using a last trade price
disseminated during the overnight trading session could lead to using a
reference price unrelated to the securities' current market, and cause
Limit Orders to be improperly canceled or left available for execution.
The Exchange, therefore, proposes to amend Exchange Rule
2614(a)(1)(ix)(A)2 to provide that, when most current, the Exchange
would use the last trade price for a security on trade date received
outside of Regular Trading Hours but during the Exchange's Early or
Late Trading Session (Form T, as communicated by the relevant SIP) on
trade date which other than for the Form T designation would have been
considered a valid last sale price for purposes of Limit Order Price
Protection.
Trading Collar
In addition to the Limit Order Price Protection above, the Exchange
also prevents all incoming orders, including those marked Intermarket
Sweep Orders (``ISO''), from executing at a price outside the Trading
Collar price range as described in Exchange Rule 2618(b). The Trading
Collar prevents buy orders from trading or routing at prices above the
collar and prevents sell orders from trading or routing at prices below
the collar.
The Exchange's default behavior is to calculate the Trading Collar
price range for a security by applying the numerical guidelines for
Clearly Erroneous Executions under Exchange Rule 2621 or a specified
dollar value established by the Exchange or adjusted by the Equity
Member.\11\ The resultant Trading Collar price range is then either
added to the Trading Collar Reference Price to determine the Trading
Collar Price for buy orders or subtracted from the Trading Collar
Reference Price to determine the Trading Collar Price for sell orders.
Exchange Rule 2618(b)(1) provides that the Trading Collar Reference
Price is equal to the most current of the following: (A) consolidated
last sale price disseminated during the Regular Trading Hours on trade
date; (B) the last trade price for the security on trade date that
occurred outside of Regular Trading Hours (Form T, as communicated by
the relevant SIP) on trade date which other than for the Form T
designation would have been considered a valid last sale price; or (C)
the prior day's Official Closing Price identified as such by the
primary listing exchange, adjusted to account for events such as
corporate actions and news events. If none of the above are available
to use as the Trading Collar Reference Price, the Exchange suspends the
Trading Collar function in the interest of maintaining a fair and
orderly market in the impacted security pursuant to Exchange Rule
2618(b)(1)(iii).
---------------------------------------------------------------------------
\11\ Although the Exchange applies the numerical guidelines for
Clearly Erroneous Executions, no order would be executed outside of
the prescribed Price Bands pursuant to the Plan to Address
Extraordinary Market Volatility, as described below. See Exchange
Rule 2622.
---------------------------------------------------------------------------
Similarly to the Exchange's proposal above for Limit Order Price
Protection, the Exchange proposes to amend Exchange Rule 2618(b)(1)(ii)
regarding the reference price that would be used due to the upcoming
expansion by other national securities exchanges and the appliable SIPs
of their hours to 23 hours per day, 5 days per week. Currently,
Exchange Rule 2618(b)(1)(ii)(B) provides that the reference price may
be the last trade price for the security on trade date that occurred
outside of Regular Trading Hours (Form T, as communicated by the
relevant SIP) on trade date which other than for the Form T designation
would have been considered a valid last sale price. This reference
price will be used when it is more current than the consolidated last
sale or prior day's
[[Page 63367]]
Official Closing Price. As currently written, the Exchange would use a
last trade price disseminated any time outside of Regular Trading
Hours, which will include not only the Exchange's Early and Late
Trading Sessions, but also the upcoming overnight trading session that
will operate from 9:00 p.m. to 4:00 a.m. Eastern Time.
Like for Limit Order Price Protection, due to the trading hours of
the Exchange and other national securities exchanges being currently
limited to 4:00 a.m. and 8:00 p.m. Eastern Time, the Exchange would use
a last trade price received outside of Regular Trading Hours received
during its Early or Late Trading Sessions. For the same reasons as
discussed for Limit Order Price Protection above, the Exchange intends
to keep the status quo and only use the last trade prices disseminated
when the Exchange is operating, which is from 4:00 a.m. to 8:00 p.m.
Eastern Time, and not a last trade price disseminated during the
overnight trading session, which is anticipated to be from 9:00 p.m. to
4:00 a.m. Eastern Time, as a reference price. The Exchange, therefore,
proposes to amend Exchange Rule 2618(b)(1)(ii) to provide that, when
most current, the Exchange would use the last trade price for the
security on trade date received outside of Regular Trading Hours but
during the Exchange's Early or Late Trading Sessions (Form T, as
communicated by the relevant SIP) on trade date which other than for
the Form T designation would have been considered a valid last sale
price for purposes of the Trade Collar price range.
There are also certain situations where the Exchange would not
cancel an order that would execute at a price outside of the Trading
Collar price range. Exchange Rule 2618(b)(1)(i) provides that, upon
entry, any portion of an order to buy (sell) that would execute at a
price above (below) the Trading Collar price range is cancelled,
unless: (A) the price listed under paragraph (ii)(C) (i.e., the prior
day's Official Closing Price) is to be applied and a regulatory halt
has been declared by the primary listing market during that trading
day; or (B) if no consolidated last sale price and no last trade price
for the security on trade date that occurred outside of Regular Trading
Hours (Form T, as communicated by the relevant SIP) on trade date which
other than for the Form T designation would have been considered a
valid last sale price has been disseminated following the conclusion of
a regulatory halt declared by the primary listing market on that
trading day. For the same reasons as discussed above, the Exchange
proposes to amend Exchange Rule 2618(b)(1)(i)(B) to conform to Exchange
Rule 2618(b)(1)(ii)(B).
* * * * *
The Exchange does not guarantee that the risk settings in this
proposal are sufficiently comprehensive to meet all of an Equity
Member's risk management needs. Pursuant to Rule 15c3-5 under the
Act,\12\ a broker-dealer with market access must perform appropriate
due diligence to assure that controls are reasonably designed to be
effective, and otherwise consistent with the rule.\13\ Use of the
Exchange's risk settings included in Exchange Rule 2618 will not
automatically constitute compliance with Exchange or federal rules and
responsibility for compliance with all Exchange and SEC rules remains
with the Equity Member.
---------------------------------------------------------------------------
\12\ 17 CFR 240.15c3-5.
\13\ See Division of Trading and Markets, Responses to
Frequently Asked Questions Concerning Risk Management Controls for
Brokers or Dealers with Market Access, available at <a href="https://www.sec.gov/divisions/marketreg/faq-15c-5-risk-management-controls-bd.htm">https://www.sec.gov/divisions/marketreg/faq-15c-5-risk-management-controls-bd.htm</a>.
---------------------------------------------------------------------------
Implementation
The Exchange plans to implement the proposed rule changes on
December 6, 2026, the date on which the SIPs will extend their hours to
23 hours, 5 days a week.
2. Statutory Basis
The Exchange believes the proposed rules changes are consistent
with the Act and the rules and regulations thereunder applicable to the
Exchange and, in particular, the requirements of Section 6(b) of the
Act.\14\ Specifically, the Exchange believes the proposed rule change
is consistent with the Section 6(b)(5) \15\ requirements that the rules
of an exchange be designed to prevent fraudulent and manipulative acts
and practices, to promote just and equitable principles of trade, to
foster cooperation and coordination with persons engaged in regulating,
clearing, settling, processing information with respect to, and
facilitating transactions in securities, to remove impediments to and
perfect the mechanism of a free and open market and a national market
system, and, in general, to protect investors and the public interest.
Additionally, the Exchange believes the proposed rule change is
consistent with the Section 6(b)(5) \16\ requirement that the rules of
an exchange not be designed to permit unfair discrimination between
customers, issuers, brokers, or dealers.
---------------------------------------------------------------------------
\14\ 15 U.S.C. 78f(b).
\15\ 15 U.S.C. 78f(b)(5).
\16\ Id.
---------------------------------------------------------------------------
The proposal would allow the Exchange to maintain its status quo
under 23/5 trading and continue to use the same last trade prices as a
reference price as it does today for both Limit Order Price Protection
and Trading Collars by limiting the times at which the last trade price
is received outside Regular Trading Hours to the times between 4:00
a.m. and 9:30 a.m. Eastern Time and 4:00 p.m. and 8:00 p.m. Eastern
Time. Rather than leave the rules in place as is, which could result in
the use of a last trade price received during the overnight trading
session, the Exchange determined to maintain the status quo, rather
than risk the use of a reference price from the overnight trading
session that may not be reasonably related to the securities' trading
behavior at the time the risk protection is to be applied.
Overnight trading may be subject to different liquidity and
participation considerations than the current pre- and post-market
sessions that operated outside of Regular Trading Hours. As stated
above, the Exchange believes that the upcoming overnight trading
session has the potential liquidity, high volatility, changing to
involve material trading risks, including the possibility of lower
prices, unlinked markets, an exaggerated effect from news
announcements, wider spreads and other relevant risks. The Exchange is
concerned that using a last trade price disseminated during the
overnight trading session could lead to using a reference price
unrelated to the securities' current market, and cause Limit Orders to
be improperly canceled or left available for execution. The decision to
maintain the status quo under this proposal would promote a fair and
orderly markets and thereby protect investors and the public interest.
In addition, the operation of Limit Order Price Protection and Trading
Collars would not change because, as proposed, the last trade price
received outside of Regular Trading Hours but during the Exchange's
Early or Late Trading Sessions would continue to be used as a reference
price. However, the Exchange believes that it is appropriate to amend
its rules to ensure that its rules maintain the status quo in light of
23/5 trading. Without this change, market participants may mistakenly
believe that the Exchange would apply a reference price from the
overnight trading session. The proposed rule change would therefore
facilitate operational transparency while providing for a fair and
orderly market.
[[Page 63368]]
Lastly, the Exchange believes the proposed amendments will remove
impediments to and perfect the mechanism of a free and open market and
a national market system because they will allow the Exchange to
continue to provide reasonably designed functionality for Equity
Members to manage their risk. The Exchange believes that the proposal
is designed to protect investors and the public interest because it
would allow the Exchange to apply reasonable reference prices and
provide risk mitigation tools to aid Equity Members in minimizing their
financial exposure and reduce the potential for disruptive, market-wide
events.
B. Self-Regulatory Organization's Statement on Burden on Competition
The Exchange does not believe that the proposed rules changes will
impose any burden on competition that is not necessary or appropriate
in furtherance of the purposes of the Act. Maintaining the status quo
and using a last trade price received while the Exchange is open for
trading as reference price as proposed herein may increase confidence
in the proper functioning of the markets, reasonableness of the
Exchange's risk controls, and contribute to additional competition
among trading venues and broker-dealers. Rather than impede
competition, the proposal is designed to facilitate reasonable risk
management by Equity Members. The proposal would impose no burden on
intra-market competition because the use of the proposed risk settings
is optional and each risk setting is available to all Equity Members
equally.
C. Self-Regulatory Organization's Statement on Comments on the Proposed
Rule Change Received From Members, Participants, or Others
Written comments were neither solicited nor received.
III. Date of Effectiveness of the Proposed Rule Change and Timing for
Commission Action
Pursuant to Section 19(b)(3)(A) of the Act \17\ and Rule 19b-
4(f)(6) \18\ thereunder, the Exchange has designated this proposal as
one that effects a change that: (i) does not significantly affect the
protection of investors or the public interest; (ii) does not impose
any significant burden on competition; and (iii) by its terms, does not
become operative for 30 days after the date of the filing, or such
shorter time as the Commission may designate if consistent with the
protection of investors and the public interest.\19\
---------------------------------------------------------------------------
\17\ 15 U.S.C. 78s(b)(3)(A).
\18\ 17 CFR 240.19b-4(f)(6).
\19\ 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.
---------------------------------------------------------------------------
At any time within 60 days of the filing of this 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#3b494e575e16585456565e554f487b485e58155c544d"><span class="__cf_email__" data-cfemail="5123243d347c323e3c3c343f2522112234327f363e27">[email protected]</span></a>. Please include
File Number SR-PEARL-2026-41 on the subject line.
Paper Comments
<bullet> Send paper comments in triplicate to Vanessa Countryman,
Secretary, Securities and Exchange Commission, 100 F Street NE,
Washington, DC 20549-1090.
All submissions should refer to file number SR-PEARL-2026-41. 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 also 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-PEARL-2026-41 and should be submitted on
or before October 26, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\20\
---------------------------------------------------------------------------
\20\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-20302 Filed 10-2-26; 8:45 am]
BILLING CODE 8011-01-P
</pre><script data-cfasync="false" src="/cdn-cgi/scripts/5c5dd728/cloudflare-static/email-decode.min.js"></script></body>
</html>Indexed from Federal Register on October 5, 2026.
This is legal information, not legal advice. Laws vary by jurisdiction and change frequently. Always verify current law with official sources and consult a licensed attorney in your jurisdiction for advice on your specific situation.