Notice2026-20505
Self-Regulatory Organizations; Investors Exchange LLC; Notice of Filing and Immediate Effectiveness of Proposed Rule Change To Establish Listing Standards and Withdrawal Criteria for Options on Commodity-Based Trusts Holding a Single Crypto Asset or Multiple Crypto Assets and To Amend Rules Regarding Position and Exercise Limits for Options on iShares Bitcoin Trust ETF
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 7, 2026
Issuing agencies
Securities and Exchange Commission
Full Text
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<title>Federal Register, Volume 91 Issue 193 (Wednesday, October 7, 2026)</title>
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[Federal Register Volume 91, Number 193 (Wednesday, October 7, 2026)]
[Notices]
[Pages 64194-64205]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2026-20505]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 34-106575; File No. SR-IEX-2026-34]
Self-Regulatory Organizations; Investors Exchange LLC; Notice of
Filing and Immediate Effectiveness of Proposed Rule Change To Establish
Listing Standards and Withdrawal Criteria for Options on Commodity-
Based Trusts Holding a Single Crypto Asset or Multiple Crypto Assets
and To Amend Rules Regarding Position and Exercise Limits for Options
on iShares Bitcoin Trust ETF
October 2, 2026.
Pursuant to Section 19(b)(1) \1\ of the Securities Exchange Act of
1934 (``Act'') \2\ and Rule 19b-4 thereunder,\3\ notice is hereby given
that, on September 22, 2026, the Investors Exchange LLC (``IEX'' or
``Exchange'') filed with the Securities and Exchange Commission
(``Commission'') the proposed rule change as described in Items I and
II below, which Items have been prepared by the self-regulatory
organization. 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\ 15 U.S.C. 78a.
\3\ 17 CFR 240.19b-4.
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[[Page 64195]]
I. Self-Regulatory Organization's Statement of the Terms of Substance
of the Proposed Rule Change
Pursuant to the provisions of Section 19(b)(1) under the Act,\4\
and Rule 19b-4 thereunder,\5\ the Exchange is filing with the
Commission a proposed rule change to update certain of its options
listing standards and position and exercise limits rules in advance of
the launch of IEX Options. The Exchange has designated this proposal as
non-controversial and provided the Commission with the notice required
by Rule 19b-4(f)(6)(iii) under the Act.\6\
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\4\ 15 U.S.C. 78s(b)(1).
\5\ 17 CFR 240.19b-4.
\6\ 17 CFR 240.19b-4(f)(6)(iii).
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The text of the proposed rule change is available at the Exchange's
website at <a href="https://www.iexexchange.io/resources/regulation/rule-filings">https://www.iexexchange.io/resources/regulation/rule-filings</a>
and at the principal office of the Exchange.
II. Self-Regulatory Organization's Statement of the Purpose of, and the
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 the
Statutory Basis for, the Proposed Rule Change
1. Purpose
On September 18, 2025, the Commission approved IEX's proposal to
adopt rules governing the trading of options on the Exchange in a new
facility called ``IEX Options''; \7\ IEX Options has announced its plan
to commence trading options on October 2, 2026.\8\ In advance of the
launch of IEX Options, IEX proposes to update certain of its options
listing standards and position and exercise limits rules. Specifically,
as described herein, the Exchange proposes to amend Rule 20.120,
Criteria for Underlying Securities, Rule 20.130, Withdrawal of Approval
of Underlying Securities, Rule 19.160, Position Limits, and Rule
19.180, Exercise Limits, to amend certain listing standards, establish
certain listing standards and withdrawal criteria, and amend position
and exercise limits.
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\7\ See Securities Exchange Act Release No. 103290 (June 18,
2025), 90 FR 26865, 26878 (June 24, 2025) (SR-IEX-2025-02) (Notice
of Filing of Amendment No. 3 to a Proposed Rule Change To Adopt
Rules To Govern the Trading of Options on the Exchange for a New
Facility Called IEX Options) (``Options Rule Filing'') and
Securities Exchange Act Release No. 103998 (September 18, 2025), 90
FR 45861 (September 23, 2025) (SR-IEX-2025-02) (Commission order
approving a Proposed Rule Change, as Modified by Amendment No. 3, to
Adopt Rules To Govern the Trading of Options on the Exchange for a
New Facility Called IEX Options) (``Approval Order'').
\8\ See <a href="https://www.iex.io/options/resources#important-dates">https://www.iex.io/options/resources#important-dates</a>.
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The Exchange proposes to amend Rule 20.120(i) and Rule 20.130(g) to
establish listing criteria and withdrawal standards for options on
Commodity-Based Trusts that hold a single crypto asset or multiple
crypto assets. Specifically, the Exchange proposes to amend the
criteria for listing options on Fund Shares \9\ at Rule 20.120(i) and
withdrawal criteria at Rule 20.130(g). This aspect of the proposal is
competitive and is substantively identical to proposals submitted by
other options exchanges that have been approved by the Commission.\10\
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\9\ The term ``Fund Shares'' is defined in Rule 20.120(i).
\10\ See, e.g., Securities Exchange Act Release No. 105072
(March 24, 2026), 91 FR 14894 (March 27, 2026) (SR-ISE-2025-30)
(establishing listing criteria and withdrawal standards for options
on Commodity-Based Trusts that hold multiple crypto assets);
Securities Exchange Act Release No. 105958 (July 21, 2026), 91 FR
46814 (July 24, 2026) (SR-MEMX-2026-13); Securities Exchange Act
Release No. 105220 (April 13, 2026), 91 FR 20530 (April 16, 2026)
(SR-MIAX-2026-13). The Exchange notes that at the time the
Commission approved these rule changes, ISE, MEMX, and MIAX already
had effective rules for listing criteria and withdrawal standards
for options on Commodity-Based Trusts that hold a single crypto
asset.
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The Exchange proposes to amend Rule 19.160, Position Limits, and
Rule 19.180, Exercise Limits, to establish position and exercise limits
for iShares Bitcoin Trust ETF (``IBIT''). This aspect of the proposal
is competitive and is substantively identical to proposals submitted by
other options exchanges that have been approved by the Commission or
were immediately effective upon filing.\11\
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\11\ See, e.g., Securities Exchange Act Release No. 105317
(April 27, 2026), 91 FR 23333 (April 30, 2026) (SR-ISE-2025-26)
(Order Approving a Proposed Rule Change, as Modified by Amendment
No. 5, to Amend the Position and Exercise Limits for IBIT Options);
Securities Exchange Act Release No. 105501 (May 18, 2026), 91 FR
30008 (May 21, 2026) (SR-Phlx-2026-29); Securities Exchange Act
Release No. 105510 (May 18, 2026), 91 FR 29997 (May 21, 2026) (SR-
MIAX-2026-20); Securities Exchange Act Release No. 105520 (May 19,
2026), 91 FR 30340 (May 22, 2026) (SR-BOX-2026-13); Securities
Exchange Act Release No. 105652 (June 10, 2026), 91 FR 36031 (June
15, 2026) (SR-MEMX-2026-14); Securities Exchange Act Release No.
105919 (July 15, 2026), 91 FR 44909 (July 17, 2026) (SR-NYSEAMER-
2026-60); Securities Exchange Act Release No. 105920 (July 15,
2026), 91 FR 45294 (July 20, 2026) (SR-NYSEARCA-2026-76).
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(i) Proposed Amendments to Rule 20.120(i) To Add a Generic Listing
Standard for Crypto-Asset Commodity-Based Trusts
The Exchange proposes to amend Rule 20.120, Criteria for Underlying
Securities, and Rule 20.130, Withdrawal of Approval of Underlying
Securities, to establish listing criteria and withdrawal standards for
options on Commodity-Based Trusts that hold a single crypto asset or
multiple crypto assets.
Specifically, the Exchange proposes to amend the criteria for
listing options on Fund Shares at Rule 20.120(i) \12\ to allow the
Exchange to list and trade options on Fund Shares that represent
interests in a Commodity-Based Trust that meets the generic criteria of
the U.S. securities exchange that is the primary equities listing
market for the Commodity-Based Trust, except that Commodity-Based Trust
holds a single crypto asset or multiple crypto assets that meets the
following requirements: (1) the total global supply of each underlying
crypto asset(s) held by the Commodity-Based Trust has an average daily
market value of at least $700 million over the last 12 months; and (2)
each crypto asset held by the Commodity-Based Trust underlies a
derivatives contract that trades on a market with which the Exchange
has a comprehensive surveillance sharing agreement, whether directly or
through common membership in the Intermarket Surveillance Group. For
purposes of this section of the Rule, the term ``crypto asset'' means
an asset that is generated, issued and/or transferred using a
blockchain or similar distributive ledger technology network, including
but not limited to, assets known as ``tokens,'' ``digital assets,''
``virtual currencies,'' and ``coins,'' and that relies on cryptographic
protocols. This aspect of the proposal is competitive and is
substantively identical to proposals submitted by other options
exchanges
[[Page 64196]]
that have been approved or deemed approved by the Commission.\13\
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\12\ In connection with this filing, the Exchange is proposing
to renumber the list of securities deemed appropriate for listing
and trading of options under Rule 20.120(i) using lowercase Roman
numerals i-iv, as opposed to the numbers 1-4 currently used in the
Rule in an effort to avoid confusion when referencing sections of
this Rule and otherwise maintain consistency with the numbering
throughout the Exchange's rulebook. The proposed fifth subparagraph
of Rule 20.120(i) for Commodity-Based Trusts will conform to the
renumbering and will be added as Rule 20.120(i)(v). In addition, the
Exchange is proposing to reformat Rule 20.120(l)(1) by moving
subparagraph (F) to the next line so that it is appropriately
distinguished from Rule 20.120(l)(1)(E). The Exchange is not
proposing any changes to the rule text of Rule 20.120(l)(1)(E) or
Rule 20.120(l)(1)(F).
\13\ SR-ISE-2025-08 Amendment No. 1 was deemed approved as of
October 24, 2025. See Securities Exchange Act Release No. 104210
(November 18, 2025), 90 FR 52727 (November 21, 2025) (SR-ISE-2025-
08) (Notice of Deemed Approval of Various Proposed Rule Changes--BOX
Exchange, LLC, Cboe Exchange, Inc., Cboe BYX Exchange, Inc., Cboe
BZX Exchange, Inc., Cboe EDGX Exchange, Inc., Miami International
Securities Exchange, LLC, MIAX PEARL, LLC, MIAX Sapphire, LLC,
Nasdaq ISE, LLC, New York Stock Exchange LLC, NYSE American LLC,
NYSE Arca, Inc., NYSE National, Inc., and NYSE Texas, Inc.); see
also Securities Exchange Act Release No. 105072 (March 24, 2026), 91
FR 14894 (March 27, 2026) (SR-ISE-2025-30) (Order Approving a
Proposed Rule Change, as Modified by Amendment Nos. 1 and 2,
Regarding the Adoption of Listing Criteria for Options on Commodity-
Based Trusts That Hold Multiple Crypto Assets); Securities Exchange
Act Release No. 105958 (July 21, 2026), 91 FR 46814 (July 24, 2026)
(SR-MEMX-2026-13); Securities Exchange Act Release No. 105578 (May
29, 2026), 91 FR 33272 (June 3, 2026) (SR-MIAX-2026-13).
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On September 17, 2025, the Commission approved proposals by The
Nasdaq Stock Market LLC, Cboe BZX Exchange, Inc., and NYSE Arca, Inc.
to Adopt Generic Listing Standards for Commodity-Based Trusts.\14\ In
the Generic Listing Standards for Commodity-Based Trust Shares Approval
Order, the Commission noted that each of the exchanges proposed to
adopt substantially identical ``generic'' listing standards for
Commodity-Based Trusts. Those generic listing standards define the term
shares of a ``Commodity-Based Trust'' as a security \15\ that:
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\14\ See Securities Exchange Act Release No. 103995 (September
17, 2025), 90 FR 45414 (September 22, 2025) (Order Granting
Accelerated Approval of Proposed Rule Changes, as Modified by
Amendments Thereto, To Adopt Generic Listing Standards for
Commodity-Based Trust Shares) (SR-NASDAQ-2025-056; SR-CboeBZX-2025-
104; SR-NYSEARCA-2025-54) (``Generic Listing Standards for
Commodity-Based Trust Shares Approval Order''). The Exchange
believes it is appropriate to rely on the generic listing standards
outlined by the primary listing market due to the potential
proliferation of new primary listing markets and the Commission's
acknowledgment that the definition of shares of a Commodity-Based
Trust across those primary listing markets is substantially
identical.
\15\ Shares of the applicable Commodity-Based Trust trade as
equity securities. See Nasdaq Rule 5711(d)(ii); proposed BZX Rule
14.11(e)(4)(B); proposed NYSE Arca Rule 8.201-E(b) (Generic)
(stating that Commodity-Based Trust Shares are included within the
definition of a ``security'' as such term is used in the Exchanges'
rules and are subject to the Exchanges' existing rules governing the
trading of equity securities).
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(1) is issued by a trust, limited liability company, partnership,
or other similar entity (``Trust'') that, if applicable, is operated by
a registered commodity pool operator pursuant to the Commodity Exchange
Act (``CEA''), and is not registered as an investment company pursuant
to the Investment Company Act of 1940, or series or class thereof;
(2) is designed to reflect the performance of one or more reference
assets or an index of reference assets;
(3) in order to reflect the performance, is issued by a Trust that
holds (a) one or more commodities or commodity-based assets, and (b) in
addition to such commodities or commodity-based assets, may hold
securities, cash, and cash equivalents;
(4) is issued by such Trust in a specified aggregate minimum number
in return for a deposit of (a) a specified quantity of the underlying
commodities, commodity-based assets, securities, cash, and/or cash
equivalents or (b) a cash amount with a value based on the next
determined net asset value per Trust share; and
(5) when aggregated in the same specified minimum number, may be
redeemed at a holder's request by such Trust which will deliver to the
redeeming holder (a) the specified quantity of the underlying
commodities, commodity-based assets, securities, cash, and/or cash
equivalents or (b) a cash amount with a value based on the next
determined net asset value per Trust share.
As proposed, the Commodity-Based Trust must satisfy the following:
(1) the total global supply of each underlying crypto asset held by the
Commodity-Based Trust has an average daily market value of at least
$700 million over the last 12 months; and (2) each crypto asset held by
the Commodity-Based Trust underlies a derivatives contract that trades
on a market with which the Exchange has a comprehensive surveillance
sharing agreement, whether directly or through common membership in the
Intermarket Surveillance Group (``ISG'').
The proposed rule change would require a Commodity-Based Trust to:
(1) meet the generic criteria of a U.S. equities listing exchange \16\
and hold a single crypto asset or multiple crypto assets; \17\ (2) meet
the criteria and guidelines set forth in Rule 20.120(a) \18\ and
(b),\19\ or Rule 20.120(i)(1)(B); \20\ and (3) meet the requirements of
proposed Rule 20.120(i)(v),\21\ which are as follows: (A) the total
global supply of each underlying crypto asset held by the Commodity-
Based Trust has an average daily market value of at least $700 million
over the last 12 months; and (B) each crypto asset held by the
Commodity-Based Trust underlies a derivatives contract that trades on a
market with which the Exchange has a comprehensive surveillance sharing
agreement, whether directly or through common membership in the ISG.
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\16\ A Commodity-Based Trust is defined in Cboe BZX Exchange,
Inc. Rule 14.11(e)(4), NYSE Arca, Inc. Rule 8.201(c)(1), and The
Nasdaq Stock Market LLC Rule 5711(d)(iv) (the three current U.S.
equities exchanges that serve as primary listing markets) as a
security (a) that is issued by a trust (``Trust'') that holds (1) a
specified commodity deposited with the Trust, or (2) a specified
commodity and, in addition to such specified commodity, cash; (b)
that is issued by such Trust in a specified aggregate minimum number
in return for a deposit of a quantity of the underlying commodity
and/or cash; and (c) that, when aggregated in the same specified
minimum number, may be redeemed at a holder's request by such Trust
which will deliver to the redeeming holder the quantity of the
underlying commodity and/or cash (``Commodity-Based Trust Share'').
\17\ The proposed rule defines a ``crypto asset'' to mean, for
purposes of Rule 20.120(i)(v), an asset that is generated, issued
and/or transferred using a blockchain or similar distributive ledger
technology network, including but not limited to, assets known as
``tokens,'' ``digital assets,'' ``virtual currencies,'' and
``coins,'' and that relies on cryptographic protocols.
\18\ Pursuant to Rule 20.120(a), a security (which includes an
ETF/Fund Share) on which options may be listed and traded on the
Exchange must be duly registered with the Commission and be an NMS
stock as defined in Rule 600 of Regulation NMS under the Act, as
amended, and be characterized by a substantial number of outstanding
shares that are widely held and actively traded.
\19\ Rule 20.120(b) provides criteria and guidelines when
evaluating potential securities for the listing of options.
\20\ Rule 20.120(i)(1)(B) provides that the Fund Shares are
available for creation or redemption each business day in cash or in
kind from the investment company, commodity pool or other entity at
a price related to net asset value, and the investment company,
commodity pool or other entity is obligated to provide that Fund
Shares may be created even if some or all of the securities and/or
cash required to be deposited have not been received by the Fund,
the unit investment trust or the management investment company,
provided the authorized creation participant has undertaken to
deliver the securities and/or cash as soon as possible and such
undertaking is secured by the delivery and maintenance of collateral
consisting of cash or cash equivalents satisfactory to the Fund, all
as described in the Fund's or unit trust's prospectus.
\21\ As described in more detail below, the Exchange proposes to
renumber the subparagraphs of Rule 20.120(i) to provide clarity.
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The Exchange will calculate the market value of each underlying
crypto asset by taking the total global supply of the particular crypto
asset multiplied by the token price.\22\ Total supply of crypto assets
includes all crypto assets currently issued and does not include
unissued crypto assets.\23\ Further, the Exchange has specified in
proposed
[[Page 64197]]
Rule 20.120(i)(v) that each crypto asset held by the Commodity-Based
Trust must underlie a derivatives contract that trades on a market with
which the Exchange has a comprehensive surveillance sharing agreement,
whether directly or through common membership in the ISG.\24\ The
Exchange will be required to ensure that this requirement is met prior
to listing options on a Commodity-Based Trust pursuant to proposed Rule
20.120(i)(v).
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\22\ The market supply information can be obtained from publicly
available sources such as <a href="https://www.coingecko.com/">https://www.coingecko.com/</a> or <a href="https://coinmarketcap.com/">https://coinmarketcap.com/</a>.
\23\ For example, if Bitcoin were the underlying crypto asset,
the Exchange would consider the total supply of all Bitcoin
currently issued instead of the maximum supply, which would be
currently issued as well as unminted Bitcoin. As of September 21,
2026, Bitcoin's total supply was 20,087,515 (the maximum supply is
21,000,000). See <a href="https://www.coingecko.com/en/coins/bitcoin">https://www.coingecko.com/en/coins/bitcoin</a>. The
Exchange would calculate market value by utilizing the total supply
number multiplied by the Bitcoin price on that day.
\24\ For a list of the current members of ISG, see <a href="https://isgportal.org/page/isg_members">https://isgportal.org/page/isg_members</a>.
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As a result of this proposal, the proposed listing criteria would
permit a Commodity-Based Trust that (a) is generically listed on a U.S.
exchange that is the primary equities listing market for the Commodity-
Based Trust and (b) holds a single crypto asset or multiple crypto
assets to qualify for the listing of options on that ETF, provided
proposed Rule 20.120(i)(v) has also been met, as well as the listing
criteria in Rule 20.120(a) and (b), or Rule 20.120(i)(1)(B).
Accordingly, the Exchange proposes to add the following rule text
as new subparagraph (v) to Rule 20.120(i):
(v) represent interests in a Commodity-Based Trust that meets the
generic criteria of the U.S. securities exchange that is the primary
equities listing market for the Commodity-Based Trust, except that the
Commodity-Based Trust holds a single crypto asset or multiple crypto
assets that meets the following requirements: (1) the total global
supply of each underlying crypto asset held by the Commodity-Based
Trust has an average daily market value of at least $700 million over
the last 12 months; and (2) each crypto asset held by the Commodity-
Based Trust underlies a derivatives contract that trades on a market
with which the Exchange has a comprehensive surveillance sharing
agreement, whether directly or through common membership in the
Intermarket Surveillance Group. For purposes of subparagraph (v) in
this Rule, the term ``crypto asset'' means an asset that is generated,
issued and/or transferred using a blockchain or similar distributive
ledger technology network, including but not limited to, assets known
as ``tokens,'' ``digital assets,'' ``virtual currencies,'' and
``coins'' and that relies on cryptographic protocols.
(ii) Proposed Amendments to Rule 20.130(g) To Add Delisting
Requirements for Options on Commodity-Based Trusts
Similar to options on any ETF, an option on a Commodity-Based Trust
that meets the requirements of proposed Rule 20.120(i)(v) would also be
subject to the Exchange's delisting requirements set forth in Rule
20.130(g) for Fund Shares approved for options trading pursuant to Rule
20.120(i). Rule 20.130(g) provides that Fund Shares approved for
options trading pursuant to Rule 20.120 will not be deemed to meet the
requirements for continued approval, and the Exchange shall not open
for trading any additional series of option contracts of the class
covering such Fund Shares if the security is delisted from trading as
provided in Rule 20.130(b)(4) (i.e., the underlying security ceases to
be an ``NMS stock'' as defined in Rule 600 of Regulation NMS under the
Act).\25\ With respect to options on Commodity-Based Trusts that are
approved subject to proposed Rule 20.120(i)(v), the Exchange proposes
to amend Rule 20.130(g) to adopt a new subparagraph (3) which states:
``In the case of options covering Fund Shares approved pursuant to Rule
20.120(i)(v), if the criteria in Rule 20.120(i)(v)(1) are no longer
satisfied, as determined by the Exchange on a monthly basis, or if the
criteria in Rule 20.120(i)(v)(2) are no longer satisfied.'' \26\
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\25\ See Rule 20.130(g).
\26\ The Exchange proposes to renumber the remaining paragraphs
of Rule 20.130(g).
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This proposed new criteria would require ETFs that are listed
pursuant to Rule 20.120(i)(v) to continue to meet the requirements of
Rules 20.120(i)(v)(1) and (2). Additionally, this proposed new
criteria, which would also be added to Rule 20.130(g)(1), would require
ETFs that are listed pursuant to 20.120(i)(1)(A) to continue to meet
the requirements of subparagraphs (1), (2), (3), and (4), of Rule
20.130(g), as amended.
The Exchange is proposing that the criteria in Rule 20.120(i)(v)(1)
be met on a monthly basis while the criteria in Rule 20.120(i)(v)(2) be
met on a continuous basis. The Exchange believes that requiring the
criteria in Rule 20.120(i)(v)(1) to be met on a monthly basis is
reasonable given that the Exchange believes that it is unlikely that a
crypto asset with an average daily market value of at least $700
million over the previous twelve months would fail to meet that
standard as a result of trading over a relatively short period of time.
By way of example, if a crypto asset has a market capitalization of
$900 million and traded at that market capitalization for 15 days in a
20-day trading month, the crypto asset could lose a substantial amount
of its value (up to 88%) and still meet the criteria. Similarly, a
crypto asset with a market capitalization of $500 million for 15 days
in a 20-day trading month would have to achieve a market capitalization
of $1.3 billion (a 160% increase) in the last 5 days to meet the
criteria. Given the unlikelihood that there would be a huge movement
over a month's period of time and considering the work that would be
required to calculate the criteria on a daily basis as compared to each
month, the Exchange believes that the proposed continued listing
obligation for the average daily market value criteria is sufficient.
Also, the Exchange proposes to add ``crypto asset(s)'' to the list of
items covered by subparagraph (4).
Further, options on Commodity-Based Trusts that are approved
subject to Rule 20.120(i)(v) would continue to be subject to Exchange
Rule 20.130(g)(5), as renumbered, which states that the Exchange may
consider suspending opening transactions in options on Fund Shares if,
``such other event occurs or condition exists that in the opinion of
the Exchange makes further dealing in such options on IEX Options
inadvisable.'' The Exchange may determine at any point to delist an
option on a Commodity-Based Trust that may not have sufficient
liquidity or market demand.
Consistent with current Rule 20.140, which governs the opening of
options series on a specific underlying security (including ETFs), the
Exchange will open at least one expiration month series of options on a
Commodity-Based Trust Fund Share \27\ at the commencement of trading on
the Exchange and may also list series of options on a Commodity-Based
Fund
[[Page 64198]]
Share for trading on a weekly,\28\ monthly,\29\ or quarterly basis.\30\
The Exchange may also list long-term options series that expire from 12
to 39 months from the time they are listed.\31\
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\27\ See Rule 20.140(b) and (e). The monthly expirations are
subject to certain listing criteria for underlying securities
described within Rule 20.120. Monthly listings expire the third
Friday of the month. The term ``expiration date'' (unless separately
defined elsewhere in the OCC By-Laws), when used in respect of an
option contract (subject to certain exceptions), means the third
Friday of the expiration month of such option contract, or if such
Friday is a day on which the exchange on which such option is listed
is not open for business, the preceding day on which such exchange
is open for business. See OCC By-Laws Article I, Section 1. Pursuant
to Rule 20.140(c), additional series of options of the same class
may be opened for trading on the Exchange when the Exchange deems it
necessary to maintain an orderly market, to meet customer demand or
when the market price of the underlying stock moves more than five
strike prices from the initial exercise price or prices. New series
of options on an individual stock may be added until the beginning
of the month in which the options contract will expire. Due to
unusual market conditions, the Exchange, in its discretion, may add
a new series of options on an individual stock until the close of
trading on the business day prior to expiration.
\28\ See Rule 20.140, Supplementary Material .05.
\29\ See Rule 20.140, Supplementary Material .07.
\30\ See Rule 20.140, Supplementary Material .04.
\31\ See Rule 20.160.
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Pursuant to Rule 20.140, Supplementary Material .01, which governs
strike prices of series of options on Fund Shares, the interval of
strike prices for series of options on Commodity-Based Fund Shares may
be $1 or greater where the strike price is $200 or less or $5 or
greater where the strike price is over $200.\32\ Additionally, the
Exchange may list series of options pursuant to the $1 Strike Price
Interval Program,\33\ the $0.50 Strike Program,\34\ the $2.50 Strike
Price Program,\35\ and the $5 Strike Program.\36\ Pursuant to Rule
22.140, where the price of a series of a Commodity-Based Fund Share
option is less than $3.00, the minimum increment will be $0.05, and
where the price is $3.00 or higher, the minimum increment will be
$0.10.\37\ Any and all new series of Commodity-Based Fund Share options
that the Exchange lists will be consistent and comply with the
expirations, strike prices, and minimum increments set forth in Rules
20.140 and 22.140, as applicable.
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\32\ The Exchange notes that for options listed pursuant to the
Short Term Options Series Program, Rule 20.140, Supplementary
Material .05 sets forth intervals between strike prices on Short
Term Option Series.
\33\ See Rule 20.140, Supplementary Material .01 and .02.
\34\ See Rule 20.140, Supplementary Material .06.
\35\ See Rule 20.140, Supplementary Material .03.
\36\ See Rule 20.140(d)(5).
\37\ If options on a Commodity-Based Trust are eligible to
participate in the Penny Interval Program, the minimum increment
will be $0.01 for series with a price below $3.00 and $0.05 for
series with a price at or above $3.00. See Rule 22.140(c).
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Options on Commodity-Based Trusts that may be listed pursuant to
proposed Rule 20.120(i)(v) will trade in the same manner as options on
other ETFs on the Exchange. The Exchange Rules that currently apply to
the listing and trading of all Fund Share options on the Exchange,
including, for example, Rules that govern listing criteria,
expirations, exercise prices, minimum increments, position and exercise
limits, margin requirements, customer accounts, and trading halt
procedures will apply to the listing and trading of options on
Commodity-Based Trusts that are approved subject to Rule 20.120(i)(v)
in the same manner.
Position and exercise limits for options, including options on
Commodity-Based Trust Shares, are determined pursuant to Rules 19.160
and 19.180, respectively. Position and exercise limits for options on
ETFs vary according to the number of outstanding shares and the trading
volumes of the underlying security over the past six months, where the
largest in capitalization and the most frequently traded funds have an
option position and exercise limit of 250,000 contracts (with
adjustments for splits, re-capitalizations, etc.) on the same side of
the market; and smaller capitalization funds have position and exercise
limits of 200,000, 75,000, 50,000 or 25,000 contracts (with adjustments
for splits, re-capitalizations, etc.) on the same side of the
market.\38\ Further, the Exchange notes that Rule 29.120, which governs
margin requirements applicable to the trading of all options on the
Exchange, including options on ETFs, will also apply to the trading of
options on Commodity-Based Trusts listed pursuant to proposed Rule
20.120(i)(v).
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\38\ See Rules 19.160 and 19.180.
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The Exchange represents that, upon launch, it will have an adequate
surveillance program in place for options and intends to apply those
same program procedures to options on Commodity-Based Trusts that may
be listed pursuant to proposed Rule 20.120(i)(v) that it will apply to
the Exchange's other options products.\39\ The Exchange believes that
its planned surveillance procedures are designed to deter and detect
possible manipulative behavior which might potentially arise from
listing and trading the proposed options on Commodity-Based Trusts.
Additionally, the Exchange is a member of the ISG under the Intermarket
Surveillance Group Agreement. ISG members work together to coordinate
surveillance and investigative information sharing in the stock,
options, and futures markets. In addition, the Exchange has a
Regulatory Services Agreement (``RSA'') with the Financial Industry
Regulatory Authority (``FINRA'') for certain market surveillance,
investigation, and examinations functions, including for options-
related regulation. Further, pursuant to a multi-party 17d-2 joint
plan, all options exchanges allocate amongst themselves and FINRA
responsibilities to conduct certain options-related market surveillance
that are common to rules of all options exchanges.\40\ Further, the
Exchange will implement any new surveillance procedures it deems
necessary to effectively monitor the trading of options on Commodity-
Based Trusts pursuant to proposed Rule 20.120(i)(v).
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\39\ The surveillance program includes surveillance patterns for
price and volume movements as well as patterns for potential
manipulation (e.g., spoofing and marking the close).
\40\ Section 19(g)(1) of the Act, among other things, requires
every self-regulatory organization (``SRO'') registered as a
national securities exchange or national securities association to
comply with the Act, the rules and regulations thereunder, and the
SRO's own rules, and, absent reasonable justification or excuse,
enforce compliance by its members and persons associated with its
members. See 15 U.S.C. 78q(d)(1) and 17 CFR 240.17d-2. Section
17(d)(1) of the Act allows the Commission to relieve an SRO of
certain responsibilities with respect to members of the SRO who are
also members of another SRO (``common members''). Specifically,
Section 17(d)(1) allows the Commission to relieve an SRO of its
responsibilities to: (i) receive regulatory reports from such
members; (ii) examine such members for compliance with the Act and
the rules and regulations thereunder, and the rules of the SRO; or
(iii) carry out other specified regulatory responsibilities with
respect to such members.
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The Exchange has also analyzed its capacity and represents that it
believes the Exchange and the Options Price Reporting Authority
(``OPRA'') have the necessary systems capacity to handle the additional
traffic associated with the listing of new series of options on ETFs,
including on Commodity-Based Trusts pursuant to proposed Rule
20.120(i)(v), up to the number of expirations currently permissible
under the Rules. The Exchange believes any additional traffic generated
from the trading of options on Commodity-Based Trusts listed pursuant
to proposed Rule 20.120(i)(v) would be manageable. The Exchange
represents that Exchange members will not have a capacity issue as a
result of this proposed rule change.
Further, quotation and last sale information for Commodity-Based
Trusts listed pursuant to proposed Rule 20.120(i)(v) is available via
the Consolidated Tape Association (``CTA'') high speed line and the
Unlisted Trading Privileges Plan. Quotation and last sale information
for such securities is also available from the exchange on which such
securities are listed. Quotation and last sale information for options
on Commodity-Based Trusts listed pursuant to proposed Rule 20.120(i)(v)
will be available via OPRA,\41\ IEX's proprietary market data fees, and
major market data vendors.
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\41\ Last sale reports and quotations are the core of the
information that OPRA disseminates. OPRA also disseminates certain
other types of information with respect to the trading of options on
the markets of the OPRA participants, such as the number of options
contracts traded, open interest, and end of day summaries. OPRA also
disseminates certain kinds of administrative messages.
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(iii) Proposed Amendments to Rules 19.160 and 19.180 To Add Position
and Exercise Limits for IBIT
The Exchange proposes to amend Rules 19.160 (Position Limits) and
19.180 (Exercise Limits) to provide for
[[Page 64199]]
position and exercise limits for options on IBIT that are identical to
such limits provided for in other options exchanges' rules.\42\ IBIT is
an ETF that holds bitcoin and is listed on The Nasdaq Stock Market
LLC.\43\ The Exchange plans to list options on IBIT as a Commodity-
Based Trust listed pursuant to proposed Rule 20.120(i)(v).
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\42\ See supra, note 8.
\43\ In 2024, Nasdaq received approval to list and trade
Bitcoin-based Commodity-Based Trust Shares in IBIT pursuant to
Nasdaq Rule 5711(d). See Securities Exchange Act Release No. 99306
(January 10, 2024), 89 FR 3008 (January 17, 2024) (SR-NASDAQ-2023-
016) (Order Granting Accelerated Approval of Proposed Rule Changes,
as Modified by Amendments Thereto, To List and Trade Bitcoin-Based
Commodity-Based Trust Shares and Trust Units). IBIT started trading
on January 11, 2024.
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Position and exercise limits are designed to limit the number of
options contracts in an underlying security traded across all options
exchanges that an investor, acting alone or in concert with others
directly or indirectly, may control. These limits are intended to
address potential manipulative schemes and adverse market impacts
surrounding the use of options, such as disrupting the market in the
security underlying the options. Position and exercise limits must
balance concerns regarding mitigating potential manipulation and the
cost of inhibiting potential hedging activity that could be used for
legitimate economic purposes.
To achieve this balance, the Exchange proposes to specify the
position limits and exercise limits for options on IBIT to 1,000,000
contracts by including the proposed position limit in Rule 19.160,
Supplementary Material .01, Position Limits, and the proposed exercise
limit in Rule 19.180, Supplementary Material .01, Exercise Limits. The
Exchange notes that the proposed position limits and exercise limits
for options on IBIT are consistent with existing position limits and
exercise limits for options on iShares Russell 2000 ETF, iShares MSCI
Emerging Markets ETF, iShares China Large-Cap ETF, and iShares MSCI
EAFE ETF.
Composition and Growth Analysis for Underlying ETFs
As stated above, position (and exercise) limits are intended to
prevent the establishment of options positions that can be used or
might create incentives to manipulate the underlying market so as to
benefit options positions. The Commission has recognized that these
limits are designed to minimize the potential for mini-manipulations
and for corners or squeezes of the underlying market, as well as serve
to reduce the possibility for disruption of the options market itself,
especially in illiquid classes.\44\
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\44\ See Securities Exchange Act Release No. 67672 (August 15,
2012), 77 FR 50750 (August 22, 2012) (SR-NYSEAmex-2012-29).
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Per the Commission, ``rules regarding position and exercise limits
are intended to prevent the establishment of options positions that can
be used or might create incentives to manipulate or disrupt the
underlying market so as to benefit the options positions.'' \45\ For
this reason, the Commission requires that ``position and exercise
limits must be sufficient to prevent investors from disrupting the
market for the underlying security by acquiring and exercising a number
of options contracts disproportionate to the deliverable supply and
average trading volume of the underlying security.'' \46\
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\45\ See Securities Exchange Act Release No. 101128 (September
20, 2024), 89 FR 78942 (September 26, 2024) (SR-ISE-2024-03) (Notice
of Filing of Amendment Nos. 4 and 5 and Order Granting Accelerated
Approval of a Proposed Rule Change, as Modified by Amendment Nos. 1,
4, and 5, To Permit the Listing and Trading of Options on the
iShares Bitcoin Trust) (``ISE IBIT Approval Order'').
\46\ See id.
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The Exchange believes that establishing the position limit (and
exercise limit) for options on IBIT at 1,000,000 contracts would enable
liquidity providers to provide liquidity to the Exchange, as well as
other options exchanges on which they participate. As described in
further detail below, the Exchange believes that the continuously
increasing market capitalization of IBIT options, as well as the highly
liquid markets for those securities, reduces the concerns for potential
market manipulation and/or disruption in the underlying markets upon
the proposed position limits, while the rising demand for trading
options on IBIT for legitimate economic purposes compels the proposed
position limits and corresponding exercise limits.
Absent this proposed change, the Exchange believes that options
trading on IBIT would be subject to the 250,000-contract position limit
pursuant to the criteria in Rule 19.160(d).\47\ However, as described
below, at the time that Nasdaq ISE, LLC (``ISE'') proposed to increase
the position and exercise limits for IBIT to 1,000,000 contracts, it
provided a robust analysis on why the proposed increased limits were
appropriate. The following describes the information provided by ISE:
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\47\ Rule 19.160(d) provides at subparagraph (5) that to be
eligible for the 250,000-contract limit, either the most recent six
(6) month trading volume of the underlying security must have
totaled at least 100 million shares or the most recent six-month
trading volume of the underlying security must have totaled at least
seventy-five (75) million shares and the underlying security must
have at least 300 million shares currently outstanding.
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As of February 11, 2026, the market capitalization for IBIT was
$52,661,063,818 \48\ with an average daily volume (``ADV'') for the
preceding 6 months prior to February 11, 2026 of 61,803,035 shares. By
comparison on the same day, the iShares MSCI Emerging Markets (``EEM'')
had an ADV of 29,459,889 shares and assets under management (``AUM'')
of $27,761,941,292; the iShares China Large-Cap ETF (``FXI'') had an
ADV of 31,656,532 shares and an AUM of $6,594,337,253, and the iShares
MSCI EAFE ETF (``EFA'') had an ADV of 17,215,037 shares and an AUM of
$76,788,457,200.\49\ As of September 18, 2026, the market
capitalization for IBIT was $63,708,756,000 \50\ with ADV for the 6
months prior to September 18, 2026 of 46,401,565 shares. By comparison
on the same day, EEM had an ADV of 27,258,887 shares and an AUM of
$31,274,777,620; FXI had an ADV of 25,059,273 shares and an AUM of
$4,097,373,502, and EFA had an ADV of 13,905,337 shares and an AUM of
$77,651,223,358.\51\
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\48\ The market capitalization was determined by multiplying a
Net Asset Value of $38.29 by the number of shares outstanding:
1,337,920,000. This figure was acquired as of February 11, 2026. See
<a href="https://www.ishares.com/us/products/333011/ishares-Bitcoin-trust-etf">https://www.ishares.com/us/products/333011/ishares-Bitcoin-trust-etf</a>; see also Securities Exchange Act Release No. 104884 (February
26, 2026), 91 FR 9904 (February 27, 2026) (SR-ISE-2024-03, Amendment
No. 5) (``SR-ISE-2024-03, Amendment No. 5'').
\49\ These figures are from February 11, 2026. See SR-ISE-2024-
03, Amendment No. 5, supra note 45.
\50\ The market capitalization was determined by multiplying a
Net Asset Value of $45.95 by the number of shares outstanding:
1,386,480,000. This figure was acquired as of September 18, 2026.
See <a href="https://www.ishares.com/us/products/333011/ishares-Bitcoin-trust-etf">https://www.ishares.com/us/products/333011/ishares-Bitcoin-trust-etf</a>.
\51\ These figures are from September 18, 2026 and are
consistent with the analysis conducted by ISE set forth in SR-ISE-
2024-03, Amendment No. 5, supra, note 45.
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In addition to IBIT's Rule 19.160(d) eligibility for the 250,000
contract position limit, in proposing to establish the 1,000,000
contract position and exercise limits for IBIT, ISE performed
additional analysis with respect to IBIT.\52\ First, ISE considered
IBIT's market capitalization and ADV, and prospective position limit in
relation to other securities. In measuring IBIT against other
securities, ISE aggregated market capitalization and volume data for
securities that have defined position limits utilizing data from The
Options Clearing Corporation (``OCC'').\53\ This
[[Page 64200]]
pool of data took into consideration 3,797 options on single stock
securities, excluding broad based ETFs.\54\ Next, the data was
aggregated based on market capitalization and ADV and grouped by option
symbol and position limit utilizing statistical thresholds for ADV,
based on 180 days, and market capitalization that were one standard
deviation \55\ above the mean for each position limit category (i.e.,
25,000; 50,000 to 52,000; 75,000; 200,000; 250,000 to 375,000; 450,000
to 650,000; 750,000 to 1,250,000 and greater than or equal to
2,000,000).\56\ This exercise was performed to demonstrate IBIT's
position limit relative to other options symbols in terms of market
capitalization and ADV. For reference, at the time of the ISE filing,
the market capitalization for IBIT was $52,661,063,818 \57\ with an ADV
for the preceding 180 days prior to February 11, 2026 of 61,803,035
shares. As noted above, IBIT's market capitalization as of September
18, 2026 was $63,708,756,000 and its ADV for the preceding 180 days
prior to September 18, 2026 was 46,401,565 shares.
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\52\ See SR-ISE-2024-03, Amendment No. 5, supra, note 45.
\53\ The computations are based on OCC data from February 11,
2026. Data displaying zero values in market capitalization or ADV
were removed.
\54\ IBIT has one asset and therefore is not comparable to a
broad-based ETF where there are typically multiple components.
\55\ The standard deviation added limited utility to the
analysis given the heavily skewed distribution of market
capitalizations in the single stock securities.
\56\ These buckets are based on OCC's current position limits.
See <a href="https://www.theocc.com/market-data/market-data-reports/series-and-trading-data/position-limits">https://www.theocc.com/market-data/market-data-reports/series-and-trading-data/position-limits</a>. Rule 19.160 sets out position
limits for various contracts. For example, a 25,000 contract limit
applies to those options having an underlying security that does not
meet the requirements for a higher options contract limit. The
Exchange notes that position limits may also be higher due to
corporate actions in the underlying equities, such as a stock split.
\57\ See supra, note 45.
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According to the ISE IBIT Approval Order,\58\ if IBIT were compared
to the 10 stocks that have position limits of 750,000 contracts to 1.25
million contracts, it would rank in the 45th percentile for market
capitalization and the 89th percentile for ADV. ISE also analyzed the
position limits for IBIT by regressing the median elements from each
bucket of market capitalization and the 180-day ADV of all non-ETF
equities, against their respective position limit figures. From this
regression, ISE was able to determine the implied coefficients to
create a formulaic method for determining an appropriate position
limit.\59\ ISE utilized a linear model approach which incorporated the
median metric from each bucket given the data at both the lower end of
each position limit bucket and the higher end of each position limit
bucket could be considered significant outliers, thereby skewing the
results.
---------------------------------------------------------------------------
\58\ See supra, note 42.
\59\ ISE utilized Excel's Data Analysis Package to model the
position limit.
---------------------------------------------------------------------------
ISE utilized IBIT's market capitalization of $52,661,063,818 to
arrive at a modeled position limit of 1,707,654. Additionally, ISE
utilized IBIT's ADV of 61,803,035 to arrive at a modeled position limit
of 5,672,081. Based on the aforementioned analysis, the Exchange
believes that the proposed 1,000,000 contracts position and exercise
limit is appropriate.
Second, ISE reviewed IBIT's data relative to the market
capitalization of the entire Bitcoin market in terms of exercise risk
and availability of deliverables. Also, as of February 11, 2026, there
were approximately 20.5 million Bitcoins in circulation.\60\ At a price
of $66,938,\61\ that equates to a market capitalization of greater than
$1.374 trillion. If a position limit of 1,000,000 contracts were
considered, the exercisable risk would represent 7.474% \62\ of the
outstanding shares of IBIT. Since IBIT has a creation and redemption
process managed through the issuer, the position limit can be compared
to the total market capitalization of the entire Bitcoin market and in
that case, the exercisable risk for options on IBIT would represent
0.278% of all Bitcoin outstanding.\63\ Assuming a scenario where all
options on IBIT shares were exercised given the proposed 1,000,000-
contract position limit (and exercise limit), this would have a
virtually unnoticed impact on the entire Bitcoin market. This analysis
demonstrates that the proposed 1,000,000 per same side position and
exercise limit is appropriate for options on IBIT given its liquidity.
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\60\ See <a href="https://www.coingecko.com/en/coins/bitcoin">https://www.coingecko.com/en/coins/bitcoin</a>.
\61\ This was the approximate price of Bitcoin on February 11,
2026.
\62\ This percentage is arrived at with this equation:
(1,000,000 contract limit * 100 share per option/1,337,920,000
shares outstanding).
\63\ This number was arrived at with this calculation:
(1,000,000 contract limit * 100 share per option * $38.29 IBIT NAV)/
(20,528,687 BTC outstanding * $66,938 BTC price).
---------------------------------------------------------------------------
Third, ISE reviewed the proposed position limit by comparing it to
position limits for derivative products regulated by the Commodity
Futures Trading Commission (``CFTC''). While the CFTC, through the
relevant Designated Contract Markets, only regulates options positions
based upon delta equivalents (creating a less stringent standard), ISE
examined equivalent bitcoin futures position limits. In particular, ISE
looked at the Chicago Mercantile Exchange (``CME'') bitcoin futures
contract \64\ that has a position limit of 2,000 futures.\65\
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\64\ CME bitcoin Futures are described in Chapter 350 of CME's
Rulebook.
\65\ See the Position Accountability and Reportability Level
Table in the Interpretations & Special Notices Section of Chapter 5
of CME's Rulebook.
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On February 11, 2026, CME bitcoin futures settled at
$677,150,406.33.\66\ On February 11, 2026, IBIT settled at $38.29,
which would equate to greater than 17,684,774 shares of IBIT if the CME
notional position limit was utilized. Since substantial portions of any
distributed options portfolio is likely to be out of the money on
expiration, an options position limit equivalent to the CME position
limit for bitcoin futures (considering that all options deltas are
<=1.00) should be a bit higher than the CME implied 176,848 limit. Of
note, unlike options contracts, CME position limits are calculated on a
net futures-equivalent basis by contract and include contracts that
aggregate into one or more base contracts according to an aggregation
ratio(s).\67\ Therefore, if a portfolio includes positions in options
on futures, CME would aggregate those positions into the underlying
futures contracts in accordance with a table published by CME on a
delta equivalent value for the relevant spot month, subsequent spot
month, single month and all month position limits.\68\ If a position
exceeds position limits because of an option assignment, CME permits
market participants to liquidate the excess position within one
business day without being considered in violation of its rules.
Additionally, if at the close of trading, a position that includes
options exceeds position limits for futures contracts, when evaluated
using the delta factors as of that day's close of trading, but does not
exceed the limits when evaluated using the previous day's delta
factors, then the position shall not constitute a position limit
violation. Based on the aforementioned analysis, the Exchange believes
that the proposed 1,000,000 contracts position and exercise limit is
appropriate.
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\66\ 2,000 futures at a 5 bitcoin multiplier (per the contract
specifications) equates to $677,150,000 (2,000 contracts * 5 BTC per
contract * $67,715 price of February BTC future) of notional value.
\67\ See SR-ISE-2024-03, Amendment No. 5, footnote 33, supra
note 45.
\68\ Id.
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Fourth, ISE analyzed a position limit and exercise limit of
1,000,000 for IBIT options against other options on ETFs with an
underlying commodity, namely SPDR Gold Shares (``GLD''), iShares Silver
Trust (``SLV''), and ProShares
[[Page 64201]]
Bitcoin ETF (``BITO'').\69\ GLD has a float of 377 million shares \70\
and a position limit of 250,000 contracts. SLV has a float of 552
million shares,\71\ and a position limit of 250,000 contracts. Finally,
BITO has 200.89 million shares outstanding \72\ and a position limit of
250,000 contracts.
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\69\ GLD, SLV, and BITO each hold one asset in trust similar to
IBIT.
\70\ See <a href="https://www.ssga.com/us/en/intermediary/etfs/spdr-gold-shares-gld">https://www.ssga.com/us/en/intermediary/etfs/spdr-gold-shares-gld</a>.
\71\ See <a href="https://www.ishares.com/us/products/239855/ishares-silver-trust-fund">https://www.ishares.com/us/products/239855/ishares-silver-trust-fund</a>.
\72\ See <a href="https://www.marketwatch.com/investing/fund/bito">https://www.marketwatch.com/investing/fund/bito</a>.
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As previously noted, position limits and exercise limits are
designed to limit the number of options contracts traded on the
Exchange in an underlying security that an investor, acting alone or in
concert with others directly or indirectly, may control. A position
limit exercise in GLD would represent 6.63% of the float of GLD; a
position limit exercise in SLV would represent 4.53% of the float of
SLV; a position limit exercise in BITO would represent 12.44% of the
float of BITO.
In comparison, ISE determined that, as of February 11, 2026, a
1,000,000-contract position limit in IBIT options would represent
7.474% of the outstanding shares of IBIT. Consequently, the 1,000,000
proposed IBIT options position and exercise limit is generally aligned
with the standard applied to GLD, SLV, and BITO, and appropriate.
Fifth, ISE notes that IBIT began trading in penny increments as of
January 2, 2025 pursuant to the Penny Interval Program.\73\ The
Commission noted that evidence and analysis provided in connection with
the Penny Pilot demonstrated that the Pilot benefited investors and
other market participants in the form of narrower spreads.\74\ The most
actively traded options classes are included in the Penny Program based
on certain objective criteria (trading volume thresholds and initial
price tests). As noted in the Penny Approval Order, the Penny Program
reflects a certain level of trading interest (either because the class
is newly listed or a class experienced a significant growth in investor
interest) to quote in finer trading increments, which in turn should
benefit market participants by reducing the cost of trading such
options.\75\
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\73\ See Rule 22.140.
\74\ See Securities Exchange Act Release No. 88532 (April 1,
2020), 85 FR 19545, 19548 (April 7, 2020) (File No. 4-443) (Joint
Industry Plan; Order Approving Amendment No. 5 to the Plan for the
Purpose of Developing and Implementing Procedures Designed to
Facilitate the Listing and Trading of Standardized Options To Adopt
a Penny Interval Program) (``Penny Approval Order'').
\75\ Id. at 19548.
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The IBIT options class is among a select group of products that
have achieved a certain level of liquidity that have garnered it the
ability to trade in finer increments. Failing to increase position and
exercise limits for IBIT options, now that it is trading in finer
increments, may artificially inhibit liquidity and create price
inefficiency. The Exchange notes that options on iShares MSCI Emerging
Markets, iShares China Large-Cap ETF, and iShares MSCI EAFE ETF also
trade in penny increments based on their liquidity.
Based on ISE's analysis, the Exchange believes the 1,000,000-
contract position and exercise limits for options trading on IBIT
continue to be appropriate. Specifically, the Exchange believes that
IBIT options have more than sufficient liquidity to garner position and
exercise limits of 1,000,000 contracts. The Exchange believes that any
concerns related to manipulation and protection of investors are
mollified by the significant liquidity provision in IBIT. The Exchange
believes that, as a general principle, increases in active trading
volume and deep liquidity of the underlying securities do not lead to
manipulation and/or disruption.
The Exchange believes that the proposed position and exercise
limits for IBIT options, which are identical to such limits in place at
all other options exchanges as noted above, would continue to support a
liquid and competitive market for IBIT options, which will benefit
customers that trade these options. Further, the reporting requirement
for such options (which would be identical to the requirements of all
other options exchanges), would require that each Options Member \76\
that maintains positions in impacted options on the same side of the
market, for its own account or for the account of a customer, report
certain information to the Exchange. This information includes, but
would not be limited to, the options' positions, whether such positions
are hedged and, if so, a description of the hedge(s). Market Makers
would continue to be exempt from this reporting requirement, however,
the Exchange may access Market Maker position information.\77\
Moreover, the Exchange's requirement that Options Members file reports
with the Exchange for any customer who held aggregate large long or
short positions on the same side of the market of 200 or more option
contracts of any single class for the previous day will remain at this
level and will continue to serve as an important part of the Exchange's
surveillance efforts.\78\
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\76\ The term ``Options Member'' means a firm, or organization
that is registered with the Exchange pursuant to Chapter 18 of the
IEX Rule Book for purposes of participating in options trading on
IEX Options as an Options Order Entry Firm, Options Market Maker, or
Clearing Member. See Rule 17.100.
\77\ OCC through the Large Option Position Reporting (``LOPR'')
system acts as a centralized service provider for Options Member
compliance with position reporting requirements by collecting data
from each Options Member, consolidating the information, and
ultimately providing detailed listings of each Options Member's
report to the Exchange, as well as FINRA, acting as its agent
pursuant to an RSA.
\78\ See Rule 19.190.
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The Exchange understands that continued options volume growth in
IBIT would provide opportunities for investors to participate in the
options markets. The Exchange agrees with the other options exchanges
that the proposed position and exercise limits are appropriate and that
if lower limits had been established (e.g., position (and exercise)
limits for IBIT at 250,000 contracts pursuant to Rules 19.160(d)(5) and
19.180), trading in IBIT options would be restricted and the listed
options markets would be prevented from being able to compete fairly
and effectively with the over-the-counter (``OTC'') markets. OTC
transactions occur through bilateral agreements, the terms of which are
not publicly disclosed to the marketplace. As such, OTC transactions do
not contribute to the price discovery process on a public exchange or
other lit markets. The Exchange believes that without the proposed
change to position and exercise limits for IBIT options, market
participants will find the 250,000-contract position an impediment to
their business and investment objectives as well as an impediment to
efficient pricing. As such, market participants may find the less
transparent OTC markets a more attractive alternative to achieve their
investment and hedging objectives, leading to a retreat from the listed
options markets, where trades are subject to reporting requirements and
daily surveillance. Moreover, the Exchange notes that exchange position
and exercise limits apply across all options exchanges and thus it
would be disruptive to options exchange trading for IEX to not adopt
conforming limits.
The Exchange believes that upon launch, its surveillance procedures
and reporting requirements at the Exchange are capable of properly
identifying disruptive and/or manipulative trading
[[Page 64202]]
activity. The Exchange also represents that it will have adequate
surveillances in place to detect potential manipulation, as well as
reviews in place to identify continued compliance with the Exchange's
listing standards. These procedures monitor market activity via
automated surveillance techniques to identify unusual activity in both
options and the underlying securities, as applicable. The Exchange also
notes that large stock holdings must be disclosed to the Commission by
way of Schedules 13D or 13G,\79\ which are used to report ownership of
stock which exceeds 5% of a company's total stock issue and may assist
in providing information in monitoring for any potential manipulative
schemes. Further, the Exchange believes that the current financial
requirements imposed by the Exchange and by the Commission adequately
address concerns regarding potentially large, unhedged positions in
equity options. Current margin and risk-based haircut methodologies
serve to limit the size of positions maintained by any one account by
increasing the margin and/or capital that a Participant must maintain
for a large position held by itself or by its customer.\80\ In
addition, Rule 15c3-1 \81\ imposes a capital charge on Participants to
the extent of any margin deficiency resulting from the higher margin
requirement.
---------------------------------------------------------------------------
\79\ 17 CFR 240.13d-1.
\80\ See Rule 29.120.
\81\ 17 CFR 240.15c3-1.
---------------------------------------------------------------------------
2. Statutory Basis
The Exchange believes the proposed rule change is 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.\82\ Specifically, the Exchange believes the proposed rule change
is consistent with Section 6(b)(5) \83\ 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.
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\82\ 15 U.S.C. 78f(b).
\83\ 15 U.S.C. 78f(b)(5).
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(i) Proposed Amendments to Rule 20.120(i) To Add a Generic Listing
Standard for Crypto-Asset Commodity-Based Trusts
The Exchange believes its proposal to permit Commodity-Based Trust
Shares that hold a single or multiple crypto assets to be listed and
traded without the need for additional Commission approvals, is
consistent with the Act and will remove impediments to and perfect the
mechanism of a free and open market and a national market system and,
in general, protect investors because it would allow the Exchange to
immediately list and trade qualifying options on Commodity-Based
Trusts, provided the initial listing criteria has been met, without any
additional approvals from the Commission.
Specifically, the Exchange's proposal to adopt Rule 20.120(i)(v) to
allow the listing and trading of options on units that represent
interests in Commodity-Based Trusts that meet the generic listing
standards for Commodity-Based Trust Shares of the applicable primary
listing market,\84\ and hold a single or multiple crypto assets, is
consistent with the Act because it will permit the Exchange to offer
options on Commodity-Based Trusts soon after the listing of the ETF on
the primary listing market, provided that all the generic listing
standards for that Commodity-Based Trust on that primary listing market
have been met. Listing these options will avail market participants of
the opportunity to hedge their positions in the Commodity-Based Trusts
in a timely manner, thereby providing investors with the ability to
hedge their exposure to the underlying Commodity-Based Trust. Options
on Commodity-Based Trusts benefits investors, similar to the listing of
any other option on an ETF, by providing investors with a relatively
lower-cost risk management tool to manage their positions and
associated risk in their portfolios more easily in connection with
exposure to the price of a crypto asset. Additionally, listing options
on Commodity-Based Trusts provides investors with the ability to
transact in such options on a listed market as opposed to the OTC
options market, which increases market transparency and enhances the
process of price discovery to the benefit of all investors.
---------------------------------------------------------------------------
\84\ See supra, note 11.
---------------------------------------------------------------------------
In addition, this proposal would permit options on Commodity-Based
Trusts to be listed on the Exchange in the same manner as all other
securities that are subject to the current listing criteria in Rule
20.120(i). The Exchange notes that the majority of ETFs are able to
list and trade options once the initial listing criteria have been met
without the need for additional approvals. The proposed rule change
would allow options on certain Commodity-Based Trusts to likewise list
and trade options once the initial listing criteria on the primary
listing market have been met without the need for additional approvals.
As proposed, the Exchange would list options in a Commodity-Based
Trust that met the generic criteria of the applicable primary listing
market, provided the Commodity-Based Trust held a single or multiple
crypto assets. Further, each crypto asset held by the Commodity-Based
Trust would also be required to satisfy the conditions in proposed Rule
20.120(i)(v), which requires that (1) the total global supply of each
underlying crypto asset held by the Commodity-Based Trust has an
average daily market value of at least $700 million over the last 12
months; and (2) each crypto asset held by the Commodity-Based Trust
underlies a derivatives contract that trades on a market with which the
Exchange has a comprehensive surveillance sharing agreement, whether
directly or through common membership in the ISG.
These requirements are consistent with the Act and the protection
of investors as they should ensure that each crypto asset held by the
underlying ETF has sufficient liquidity prior to listing options, which
will serve to prevent disruption to the underlying market. The Exchange
believes that market supply serves as a good measure of liquidity to
permit options trading in options on Commodity-Based Trusts that hold a
single or multiple crypto assets. Requiring each underlying crypto
asset to have a requisite amount of deliverable supply, in addition to
all the other criteria the ETF is required to have under the applicable
primary listing market rules, should ensure adequate liquidity prior to
listing.
In addition, ensuring each crypto asset held by the Commodity-Based
Trust underlies a derivatives contract that trades on a market with
which the Exchange has a comprehensive surveillance sharing agreement,
whether directly or through common membership in the ISG, will provide
the Exchange with information to adequately surveil options on
qualifying Commodity-Based Trusts. Today, the Exchange has a
comprehensive surveillance sharing agreement in place with both the CME
and Coinbase Derivatives through their common membership in ISG. This
facilitates the sharing of information that is available
[[Page 64203]]
to the CME and Coinbase Derivatives through their surveillance of their
respective markets, including their surveillance of their respective
digital asset futures markets.
The Exchange also believes the proposed rule change will remove
impediments to and perfect the mechanism of a free and open market and
a national market system, because it is consistent with current IEX
Rules, previously filed with the Commission. Options on qualifying
Commodity-Based Trusts must satisfy the initial listing standards and
continued listing standards currently in IEX Rules applicable to
options on all ETFs. Options on qualifying Commodity-Based Trusts would
trade in the same manner as any other ETF options--the same Exchange
Rules that currently govern the listing and trading of all ETF options,
including permissible strike prices and minimum increments, and
applicable position and exercise limits and margin requirements, will
govern the listing and trading of options on qualifying Commodity-Based
Trusts.
Further, the proposal adopts new subparagraph (3) to Rule 20.130(g)
which will require each crypto asset held by a Commodity-Based Trust to
continue to meet the requirement of Rule 20.120(i)(v)(1) on a monthly
basis and for the criteria in Rule 20.120(i)(v)(2) to be met on a
continuous basis. Accordingly, each crypto asset held by a Commodity-
Based Trust must continue to have a total global supply with an average
daily market value of at least $700 million over the last 12 months,
and also must continue to underlie a derivatives contract that trades
on a market with which the Exchange has a comprehensive surveillance
sharing agreement, whether directly or through common membership in the
ISG. The Exchange believes that this continued listing standard, in
addition to the requirements of Rule 20.120(i), would protect investors
and the public interest by ensuring that each crypto asset held by the
Commodity-Based Trust continues to remain liquid.
The Exchange believes that requiring the criteria in proposed Rule
20.120(i)(v)(1) on a monthly basis is consistent with the Act and the
protection of investors given that the Exchange believes it is unlikely
that a crypto asset with an average daily market value of at least $700
million over the previous twelve months would fail to meet that
standard as a result of trading over a relatively short period of time.
Given the unlikelihood that there would be a huge movement over a
month's period of time and considering the work that would be required
to calculate the criteria on a daily basis as compared to each month,
the Exchange believes that the proposed continued listing obligation
for the average daily market value criteria is sufficient.
In addition, options on Commodity-Based Trusts that are approved
subject to proposed Rule 20.120(i)(v) would continue to be subject to
Rule 20.130(g)(5), as renumbered, which states that the Exchange may
consider suspending open transactions in options on an ETF if, ``such
other event occurs or condition exists that in the opinion of the
Exchange makes further dealing in such options on IEX Options
inadvisable.'' The Exchange may determine at any point to delist an
option on a Commodity-Based Trust that may not have sufficient
liquidity or market demand.
Options on qualifying Commodity-Based Trusts would trade in the
same manner as any other ETF options--the same Exchange Rules that
currently govern the listing and trading of all ETF options, including
permissible expirations, strike prices and minimum increments, and
applicable position and exercise limits and margin requirements, will
govern the listing and trading of options on qualifying Commodity-Based
Trusts.
The Exchange represents that it has the necessary systems capacity
to support the listing and trading of options on qualifying Commodity-
Based Trusts. The Exchange believes that its existing surveillance and
reporting safeguards are designed to deter and detect possible
manipulative behavior which might arise from listing and trading of
these options on Commodity-Based Trusts, particularly in light of the
additional requirement that each crypto asset held by the Commodity-
Based Trust underlies a derivatives contract that trades on a market
with which the Exchange has a comprehensive surveillance sharing
agreement, whether directly or through common membership in ISG.
(ii) Proposed Amendments to Rules 19.160 and 19.180 To Add Position and
Exercise Limits for IBIT
The Exchange believes that establishing position limits and
exercise limits for options on IBIT at 1,000,000 contracts is
consistent with the Act and the proposed position and exercise limits
conform to such limits adopted by all other options exchanges for IBIT
options. This proposal will remove impediments to and perfect the
mechanism of a free and open market and a national market system and,
in general, protect investors because it will provide market
participants with the ability to more effectively execute their trading
and hedging activities. Also, the proposed position and exercise limits
for IBIT options may allow Market Makers to maintain their liquidity in
these options in amounts commensurate with the continued high consumer
demand in IBIT options. The proposed position and exercise limits may
also encourage other liquidity providers to continue to trade on the
Exchange rather than shift their volume to OTC markets, which will
enhance the process of price discovery conducted on the Exchange
through increased order flow. Further, this proposal would allow
institutional investors to utilize IBIT options for prudent risk
management purposes.
In addition, the Exchange believes that the liquidity in IBIT will
continue to mitigate concerns regarding potential manipulation of IBIT
options and/or disruption of IBIT upon amending the table of position
limits in Rule 19.160, Supplementary Material .01. ISE compared IBIT's
data relative to the market capitalization of the entire Bitcoin market
in terms of exercise risk and availability of deliverables, and
concluded that if a position limit of 1,000,000 contracts were
considered, the exercisable risk would represent 7.474% of the
outstanding shares of IBIT.\85\ Since IBIT has a creation and
redemption process managed through the issuer (whereby Bitcoin is used
to create IBIT shares), the position limit can be compared to the total
market capitalization of the entire Bitcoin market and in that case,
the exercisable risk for options on IBIT would represent less than
0.278% of all Bitcoin outstanding.\86\ This analysis demonstrated that
a 1,000,000 contracts position and exercise limits would be
appropriate.
---------------------------------------------------------------------------
\85\ This percentage is arrived at with this equation:
(1,000,000 contract limit * 100 share per option/1,337,920,000
shares outstanding). This information was captured on February 11,
2026.
\86\ This number was arrived at with this calculation:
(1,000,000 limit * 100 shares per option * $38.29 IBIT NAV)/
(20,528,687 BTC outstanding * $66,938 BTC price).
---------------------------------------------------------------------------
Comparing a position limit of 1,000,000 for IBIT options against
other options on ETFs with an underlying commodity, namely GLD, SLV,
and BITO, a position limit exercise in GLD represents 6.63% of the
float of GLD; a position limit exercise in SLV represents 4.53% of the
float of SLV; and a position limit exercise of BITO represents 12.44%
of the float of BITO. In comparison, a 1,000,000-contract position
limit in IBIT options would
[[Page 64204]]
represent 7.474% \87\ of the outstanding shares of IBIT. Consequently,
a 1,000,000 IBIT options position limit is generally aligned with the
standards applied to GLD, SLV, and BITO, and appropriate.
---------------------------------------------------------------------------
\87\ See supra, note 81.
---------------------------------------------------------------------------
ISE notes that IBIT began trading in penny increments on January 2,
2025 pursuant to the Penny Interval Program.\88\ The Commission noted
that evidence and analysis provided in connection with the Penny Pilot
demonstrated that the Pilot benefited investors and other market
participants in the form of narrower spreads.\89\ The most actively
traded options classes are included in the Penny Program based on
certain objective criteria (trading volume thresholds and initial price
tests). As noted in the Penny Approval Order, the Penny Program
reflects a certain level of trading interest (either because the class
is newly listed or a class experienced a significant growth in investor
interest) to quote in finer trading increments, which in turn should
benefit market participants by reducing the cost of trading such
options.\90\
---------------------------------------------------------------------------
\88\ See Rule 22.140.
\89\ See supra, note 71.
\90\ See id.
---------------------------------------------------------------------------
The IBIT options class is among a select group of products that
have achieved a certain level of liquidity that have garnered it the
ability to trade in finer increments pursuant to the Penny Interval
Program. Failing to increase position and exercise limits for IBIT
options may artificially inhibit liquidity and create price
inefficiency.
Finally, as discussed above, the Exchange's planned surveillance
and reporting safeguards for launch are designed to deter and detect
possible manipulative behavior that might arise from increasing or
eliminating position and exercise limits in certain classes. The
Exchange believes that the current financial requirements imposed by
the Exchange and by the Commission adequately address concerns
regarding potentially large, unhedged positions in the options on the
underlying securities, further promoting just and equitable principles
of trading, the maintenance of a fair and orderly market, and the
protection of investors.
B. Self-Regulatory Organization's Statement on Burden on Competition
As set forth in more detail below, 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. To the contrary, as noted in the Purpose section, each aspect
of the proposed rule change is designed to adopt conforming rule
changes to address competitive concerns and/or provide for regulatory
consistency across the options exchanges.
Generic Listing Standard for Crypto-Asset Commodity-Based Trusts
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. The Exchange notes that the
proposed rule change is substantially similar in all material respects
to proposals submitted by other options exchanges.\91\ The Exchange
does not believe that the proposal to add the proposed listing criteria
at Rule 20.120(i)(v) with respect to ETFs, to adopt new criteria to
permit the listing and trading of options on certain Commodity-Based
Trusts that hold a single or multiple crypto assets and that were
listed pursuant to the generic listing standards for Commodity-Based
Trust Shares of the applicable primary listing market, without the need
for additional approvals, will impose any burden on intramarket
competition that is not necessary or appropriate in furtherance of the
purposes of the Act. Options on qualifying Commodity-Based Trusts would
need to satisfy the initial listing standards set forth in the Exchange
Rules in the same manner as any other ETF before the Exchange could
list options on them. Additionally, options on qualifying Commodity-
Based Trusts will be equally available to all market participants who
wish to trade such options. The Exchange Rules currently applicable to
the listing and trading of options on ETFs on the Exchange will apply
in the same manner to the listing and trading of all options on
qualifying Commodity-Based Trusts.
---------------------------------------------------------------------------
\91\ See supra, note 7.
---------------------------------------------------------------------------
Additionally, the Exchange notes that listing and trading options
on qualifying Commodity-Based Trusts on the Exchange will subject such
options to transparent exchange-based rules as well as price discovery
and liquidity, as opposed to alternatively trading such options in the
OTC market. The Exchange believes that the proposed rule change may
relieve any burden on, or otherwise promote, competition as it is
designed to increase competition for order flow on the Exchange in a
manner that is beneficial to investors by providing them with a lower-
cost option to hedge their investment portfolios in a timely manner.
The Exchange does not believe that the proposal to adopt new
listing criteria at Rule 20.120(i)(v) to permit the listing and trading
of options on certain Commodity-Based Trusts that hold a single or
multiple crypto assets and that were listed pursuant to the generic
listing standards for Commodity-Based Trust Shares of the applicable
primary listing market, without the need for additional approvals, will
impose any burden on intermarket competition that is not necessary or
appropriate in furtherance of the purposes of the Act. And as noted
herein, the proposed rule change would conform IEX listing rules to
those in effect at other options exchanges.
Position and Exercise Limits for IBIT
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. The Exchange notes that the
proposed rule change is substantially similar in all material respects
to proposals submitted by other options exchanges.\92\
---------------------------------------------------------------------------
\92\ See supra, note 8.
---------------------------------------------------------------------------
The Exchange does not believe that the proposed rule change will
impose any burden on intra-market competition because all market
participants would be subject to the same position limits in Rule
19.160 and corresponding exercise limits in Rule 19.180. The proposed
rule change will conform position and exercise limits for options on
IBIT at IEX with limits already in effect at all other options
exchanges.
The Exchange does not believe that the proposed rule change will
impose any burden on intermarket competition as the proposal is not
competitive in nature. The Exchange notes that other options exchanges
have already adopted substantively similar proposals. For these
reasons, the Exchange does not believe that the proposed rule change
will impose any burden on competition not necessary or appropriate in
furtherance of the purposes of the Act.
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
Because the foregoing proposed rule change does not: (i)
significantly affect the protection of investors or the public
interest; (ii) impose any significant
[[Page 64205]]
burden on competition; and (iii) become operative for 30 days from the
date on which it was filed, or such shorter time as the Commission may
designate, it has become effective pursuant to Section 19(b)(3)(A)(iii)
of the Act \93\ and subparagraph (f)(6) of Rule 19b-4 thereunder.\94\
---------------------------------------------------------------------------
\93\ 15 U.S.C. 78s(b)(3)(A)(iii).
\94\ 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, along
with a brief description and text of 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.
---------------------------------------------------------------------------
A proposed rule change filed under Rule 19b-4(f)(6) \95\ normally
does not become operative prior to 30 days after the date of the
filing. However, pursuant to Rule 19b-4(f)(6)(iii),\96\ the Commission
may designate a shorter time if such action is consistent with the
protection of investors and the public interest. The Exchange has asked
the Commission to waive the 30-day operative delay. Waiver of the 30-
day operative delay would permit the proposed rule change to be
effective on the date IEX Options launches. The Exchange proposes to
amend its rules to establish listing criteria and withdrawal standards
for options on Commodity-Based Trusts that hold a single crypto asset
or multiple crypto assets. This aspect of the proposal would amend
IEX's rules to be substantively identical to rules governing listing
standards and withdrawal criteria for options on Commodity-Based Trusts
that hold a single crypto asset or multiple crypto assets on other
options exchanges, as discussed herein.\97\ The Exchange also proposes
to amend IBIT options position and exercise limits on the Exchange in a
manner to conform to IBIT options position and exercise limits on other
exchanges.\98\ Therefore, this aspect of the proposal also raises no
novel legal or regulatory issues. For these reasons, waiver of the 30-
day operative delay is consistent with the protection of investors and
the public interest. Accordingly, the Commission hereby waives the 30-
day operative delay and designates the proposed rule change operative
upon filing.\99\
---------------------------------------------------------------------------
\95\ 17 CFR 240.19b-4(f)(6).
\96\ 17 CFR 240.19b-4(f)(6)(iii).
\97\ See supra Section II.A.1.(i)-(ii). See also note 10 and
accompanying text.
\98\ See supra Section II.A.1.(iii). See also note 11 and
accompanying text.
\99\ For purposes only of waiving the 30-day operative delay,
the Commission has also considered the proposed rule's impact on
efficiency, competition, and capital formation. See 15 U.S.C.
78c(f).
---------------------------------------------------------------------------
At any time within 60 days of the filing of the proposed rule
change, the Commission summarily may temporarily suspend such rule
change if it appears to the Commission that such action is necessary or
appropriate in the public interest, for the protection of investors, or
otherwise in furtherance of the purposes of the Act.
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#93e1e6fff6bef0fcfefef6fde7e0d3e0f6f0bdf4fce5"><span class="__cf_email__" data-cfemail="c4b6b1a8a1e9a7aba9a9a1aab0b784b7a1a7eaa3abb2">[email protected]</span></a>. Please include
file number SR-IEX-2026-34 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-IEX-2026-34. This file
number should be included on the subject line if email is used. To help
the Commission process and review your comments more efficiently,
please use only one method. The Commission will post all comments on
the Commission's internet website (<a href="https://www.sec.gov/rules/sro.shtml">https://www.sec.gov/rules/sro.shtml</a>). Copies of the filing will be available for inspection and
copying at the principal office of the Exchange. Do not include
personal identifiable information in submissions; you should submit
only information that you wish to make available publicly. We may
redact in part or withhold entirely from publication submitted material
that is obscene or subject to copyright protection. All submissions
should refer to file number SR-IEX-2026-34 and should be submitted on
or before October 28, 2026.
For the Commission, by the Division of Trading and Markets,
pursuant to delegated authority.\100\
---------------------------------------------------------------------------
\100\ 17 CFR 200.30-3(a)(12), (59).
---------------------------------------------------------------------------
Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-20505 Filed 10-6-26; 8:45 am]
BILLING CODE 8011-01-P
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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.