Federal Register #2026-13654

SEC Notice of Proposed Rule Change for MSCI Emerging Markets Index Options Listing

This notice from the Securities and Exchange Commission (SEC) addresses a proposed rule change submitted by NYSE American LLC and NYSE Arca, Inc. regarding the MSCI Emerging Markets Index options. - The proposal seeks to increase the single component concentration limit of the MSCI Emerging Markets Index from 15% to 20%. - This change is prompted by the increased weighting of Taiwan Semiconductor Manufacturing (TSM) within the index. - The intent is to allow continued listing and trading of options based on the MSCI Emerging Markets Index (EM Options). - No procurement of products or services is involved; this is a regulatory modification. - Key organizations mentioned: - Securities and Exchange Commission (SEC) - NYSE American LLC - NYSE Arca, Inc. - MSCI (index provider) - Taiwan Semiconductor Manufacturing (TSM) (as a significant index component) - No product or service line items are present, and no contract value is associated with this notice.

Description

The Securities and Exchange Commission (SEC) has filed proposed rule changes submitted by NYSE American LLC and NYSE Arca, Inc. to increase the single component concentration limit of the MSCI Emerging Markets Index from 15% to 20%. This change aims to allow the continued listing and trading of options that overlie the MSCI Emerging Markets Index (EM Options), providing investors with a tool to manage risk and maintain exposure to emerging markets. The proposal addresses concerns about potential delisting and restrictions on open positions due to the increased weighting of certain index components, particularly Taiwan Semiconductor Manufacturing (TSM). The rule change is intended to protect investors and the public interest by facilitating a free and open market and preventing unnecessary investor harm.

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