Federal Register #SR-PEARL-2026-38

SEC Notice: MIAX PEARL Proposed Rule Change to Expand Short Term Option Series Program for ETFs

This notice announces a proposed rule change by MIAX PEARL, LLC, published by the Securities and Exchange Commission (SEC), regarding the Short Term Option Series Program for options trading. - Government Buyer: - Securities and Exchange Commission (SEC) - OEMs and Vendors: - No OEMs or vendors are mentioned; this is a regulatory change, not a procurement. - Products/Services Requested: - No products or services are being procured; the notice pertains to amendments in options trading rules. - Key Details: - The rule change amends Exchange Rule 404 to expand the listing of option contract expirations for qualifying securities. - For Tier 1 Qualifying Securities (certain ETFs meeting current criteria), up to two Tuesday and Thursday expirations are allowed, in addition to existing Monday and Wednesday expirations. - For Tier 2 Qualifying Securities (additional ETFs meeting new, less stringent criteria), up to two Monday and Wednesday expirations are permitted. - The proposal is modeled after a similar rule previously approved for Nasdaq ISE, LLC. - Eligibility criteria for qualifying securities include market capitalization, assets under management, options volume, position limits, and participation in the Penny Interval Program. - Surveillance and capacity requirements are addressed to maintain market integrity. - Unique/Notable Requirements: - The rule change introduces a two-tier system for qualifying ETFs, expanding flexibility for options expirations based on liquidity and trading volume. - No procurement of goods or services is involved; this is a regulatory update affecting the structure of options trading.

Description

The Securities and Exchange Commission has announced the filing and immediate effectiveness of a proposed rule change by MIAX PEARL, LLC. The rule change amends Rule 404 regarding the series of option contracts open for trading and the Short Term Option Series Program concerning qualifying securities. The proposal permits the listing of up to two Tuesday and Thursday expirations for options on certain Exchange-Traded Funds that meet current criteria, in addition to existing Monday and Wednesday expirations. It also permits the listing of up to two Monday and Wednesday expirations for options on additional Exchange-Traded Fund Shares that meet new criteria, designating these as Tier 2 Qualifying Securities, while existing criteria securities are Tier 1.

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