Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Amend the MIAX Sapphire Options Exchange Fee Schedule

[Federal Register Volume 91, Number 73 (Thursday, April 16, 2026)]
[Notices]
[Pages 20524-20527]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-07347]



[[Page 20524]]

-----------------------------------------------------------------------

SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-105216; File No. SR-SAPPHIRE-2026-14]


Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Amend 
the MIAX Sapphire Options Exchange Fee Schedule

April 13, 2026.
    Pursuant to Section 19(b)(1) of the Securities Exchange Act of 1934 
(``Act'' or ``Exchange Act'') \1\ and Rule 19b-4 thereunder,\2\ notice 
is hereby given that on March 31, 2026, MIAX Sapphire, LLC (``MIAX 
Sapphire'' or ``Exchange'') filed with the Securities and Exchange 
Commission (``Commission'') a proposed rule change as described in 
Items I, II, and III below, which Items have been prepared by the 
Exchange. The Commission is publishing this notice to solicit comments 
on the proposed rule change from interested persons.
---------------------------------------------------------------------------

    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
---------------------------------------------------------------------------

I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to amend the MIAX Sapphire Options Exchange 
Fee Schedule (``Fee Schedule'') to: (1) establish a surcharge on 
certain Floor Market Maker orders in multiply-listed classes in the 
Penny Interval Program and not in the Penny Interval Program that are 
executed on the Trading Floor; and (2) establish a rebate payable to 
certain Floor Broker Priority Customer orders when the counterparty is 
a Floor Market Maker order for Trading Floor transactions (all 
capitalized terms defined and described below).
    The text of the proposed rule change is available on the Exchange's 
website at https://www.miaxglobal.com/markets/us-options/all-options-exchanges/rule-filings, and at MIAX Sapphire's principal office.

II. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

    In its filing with the Commission, the Exchange 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 Exchange has prepared summaries, set forth in 
sections A, B, and C below, of the most significant aspects of such 
statements.

A. Self-Regulatory Organization's Statement of the Purpose of, and 
Statutory Basis for, the Proposed Rule Change

1. Purpose
    The Exchange proposes to amend Section 1)c)i) of the Fee Schedule 
to: (1) establish a surcharge on certain Floor Market Maker \3\ orders 
that are executed as part of a transaction with certain Floor Broker 
\4\ Priority Customer \5\ orders in multiply-listed classes in the 
Penny Interval Program \6\ (``Penny classes'') and not in the Penny 
Interval Program (``non-Penny classes'') on the Trading Floor; \7\ and 
(2) establish an enhanced rebate payable to Floor Brokers for certain 
Priority Customer orders that interact with the Floor Market Maker 
order described above for Trading Floor transactions.
---------------------------------------------------------------------------

    \3\ A Floor Market Maker is a Floor Participant of the Exchange 
located on the Trading Floor who has received permission from the 
Exchange to trade in options for his own account. See Exchange Rule 
2105(b).
    \4\ A Floor Broker is an individual who is registered with the 
Exchange for the purpose, while on the Trading Floor, of accepting 
and handling options orders. See Exchange Rule 2015.
    \5\ The term ``Priority Customer'' means a person or entity that 
(i) is not a broker or dealer in securities, and (ii) does not place 
more than 390 orders in listed options per day on average during a 
calendar month for its own beneficial account(s). See the 
Definitions section of the Fee Schedule and Exchange Rule 100.
    \6\ See Exchange Rule 510(c).
    \7\ The term ``Trading Floor'' or ``Floor'' means the physical 
trading floor of the Exchange located in Miami, Florida. The Trading 
Floor shall consist of one ``Crowd Area'' or ``Pit'' where Floor 
Participants will be located and option contracts will be traded. 
The Crowd Area or Put shall be marked with specific visible 
boundaries on the Trading Floor, as determined by the Exchange. A 
Floor Broker must represent all orders in an ``open outcry'' fashion 
in the Crowd Area. See Exchange Rule 100.
---------------------------------------------------------------------------

Background of Fees and Rebates for Transaction on the Trading Floor
    The Exchange assesses fees (and/or provides rebates) for 
transactions on the Trading Floor based on origin. For Priority 
Customers \8\ and Professional Customers \9\ the Exchange does not 
currently assess a per contract fee (or provide a rebate) for Qualified 
Floor Order (``QFO'') \10\ and Complex Qualified Floor Order (``cQFO'') 
\11\ transactions in all multiply-listed Penny and non-Penny 
classes.\12\ The Exchange assesses a $0.25 per contract fee for QFO and 
cQFO transactions in SPY/QQQ/IWM, Penny classes (excluding SPY/QQQ/
IWM), and non-Penny classes, for Away Market Maker,\13\ Firm, and 
Broker-Dealer origins. The Exchange does not assess a fee (or provide a 
rebate) for QFO and cQFO transactions in SPY/QQQ/IWM, Penny classes 
(excluding SPY/QQQ/IWM), and non-Penny classes, for Firm and Broker-
Dealer origins that are facilitating a Priority Customer or 
Professional Customer order. The Exchange assesses Floor Market Makers 
a fee of $0.50 per contract for QFOs and cQFOs that trade against all 
other origins.\14\ The Exchange provides a rebate of ($0.10) per 
contract for transactions in SPY/QQQ/IWM, Penny classes (excluding SPY/
QQQ/IWM), and non-Penny classes, for Floor Broker origins on both the 
agency and contra sides, if applicable. The Exchange also provides a 
Floor Broker Breakup Credit of ($0.20) per contract for transactions in 
SPY/QQQ/IWM, Penny classes (excluding SPY/QQQ/IWM), and non-Penny 
classes.
---------------------------------------------------------------------------

    \8\ The term ``Priority Customer'' means a person or entity that 
(i) is not a broker or dealer in securities, and (ii) does not place 
more than 390 orders in listed options per day on average during a 
calendar month for its own beneficial account(s). See the 
Definitions section of the Fee Schedule and Exchange Rule 100.
    \9\ The term ``Professional Customer'' for the purposes of the 
Fee Schedule, shall mean a Public Customer that is not a Priority 
Customer. See the Definitions section of the Fee Schedule. The term 
``Public Customer'' means a person that is not a broker or dealer in 
securities. See the Definitions section of the Fee Schedule and 
Exchange Rule 100.
    \10\ See Exchange Rule 2040.
    \11\ See Exchange Rule 2040(a)(4).
    \12\ A QFO or cQFO must be entered as a two-sided order, with an 
initiating side and a contra side and the QFO and cQFO fees, 
rebates, and applicable fee and rebate caps will apply to both sides 
of the order. Further, cQFO fees and rebates are per executed side 
per leg.
    \13\ The term ``Away Market Maker'' for the purposes of the Fee 
Schedule, shall mean a non MIAX Sapphire Market Maker.
    \14\ See Fee Schedule, Section 1)c)i).
---------------------------------------------------------------------------

Proposal
    The Exchange proposes to amend Section 1)c)i) of the Fee Schedule 
to establish a $0.20 per contract surcharge for Floor Market Maker 
orders in Penny and non-Penny classes when the Floor Market Maker is 
the counterparty to a Priority Customer cQFO executed by a Floor Broker 
on the Trading Floor. The Exchange proposes that for such trade, the 
Exchange will provide the Floor Broker a ($0.20) per contract rebate 
(referred to as the ``Floor Broker Enhanced Complex Rebate''), which 
will be in addition to the Floor Broker Breakup Credit of ($0.20) per 
contract that the Floor Broker may also receive for such transaction. 
The Exchange also proposes to provide that the above-described 
surcharge and the rebate will not apply to cQCC \15\ transactions,

[[Page 20525]]

cC2C \16\ transactions, Strategy \17\ transactions, or other non-
complex transactions. The Exchange proposes to establish new footnote 
#1 in the Floor Market Maker origin in the table in Section 1)c)i) of 
the Fee Schedule, with explanatory text for footnote #1 below the QFO 
and cQFO Fees and Rebates Table, as follows:
---------------------------------------------------------------------------

    \15\ A cQCC transaction is comprised of an `initiating complex 
order' to buy (sell) where each component is at least 1,000 
contracts that is identified as being part of a qualified contingent 
trade, coupled with a contra-side complex order or orders to sell 
(buy) an equal number of contracts. The stock handling fee for the 
stock leg of cQCC transactions is described in Section 1)c)vi) of 
the Fee Schedule. See Fee Schedule, Section 1)c)iii).
    \16\ A cC2C Order is comprised of one Priority Customer complex 
order to buy and one Priority Customer complex order to sell at the 
same price and for the same quantity. See Fee Schedule, Section 
1)c)iv).
    \17\ As of the time of this filing, the Exchange allows for the 
following Strategy transactions: Box Spread, Jelly Roll Strategy, 
Short/Long Stock Interest Spread, Merger Spread, Reversal/Conversion 
Spread, and a Dividend Strategy. See, generally, the Definitions 
section of the Fee Schedule for the definition of each type of 
Strategy transaction.

Floor Market Makers will be assessed a $0.20 per contract surcharge 
when the Floor Market Maker is the counterparty to a Priority 
Customer cQFO transaction executed by a Floor Broker in multiply-
listed Penny or non-Penny Classes, and the executing Floor Broker 
will be paid a rebate of ($0.20) per contract (``Floor Broker 
Enhanced Complex Rebate'') for such trade. The surcharge and Floor 
Broker Enhanced Complex Rebate will not apply to cQCC transactions, 
cC2C transactions, Strategy transactions, or other non-complex 
transactions. The Floor Broker Enhanced Complex Rebate paid to the 
executing Floor Broker under the terms of this footnote 1 will be in 
addition to any Floor Broker Breakup Credit that the Floor Broker 
---------------------------------------------------------------------------
may also receive for the Priority Customer cQFO transaction.

    Although the proposed surcharge would increase certain fees for 
Floor Market Makers when acting as counterparty to Priority Customer 
cQFOs on the Trading Floor, the Exchange believes these participants 
will continue to quote actively to participate in Trading Floor 
transactions as they do today, thereby continuing to promote trading 
opportunities and competition on the Trading Floor to the benefit of 
all market participants. The purpose of this change is to further 
incentivize Floor Brokers to participate on the Trading Floor by 
increasing Priority Customer cQFO volume. The Exchange believes this 
will lead to increased Trading Floor volume, which should benefit all 
market participants by providing more trading opportunities and tighter 
spreads. As the Trading Floor is less than a year into operations, the 
Exchange believes it is important to incentivize Floor Brokers to 
continue to provide Priority Customer volume.
    The Exchange notes that the proposed complex surcharge and rebates 
are not new or novel. At least one other exchange assesses a similar 
surcharge and provides a similar rebate for customer complex order 
transactions on its trading floor where a floor market maker is the 
counterparty to the customer order that originates from a floor 
broker.\18\
---------------------------------------------------------------------------

    \18\ See Nasdaq PHLX LLC, Options 7: Pricing Schedule, Section 
4, note 9 (providing that Floor Lead Market Makers and Floor Market 
Makers will be assessed a $0.20 per contract surcharge when the 
Floor Lead Market Maker or Floor Market Maker is the counterparty to 
a Customer complex open outcry floor transaction executed by a Floor 
Broker in multiply-listed Penny or non-Penny Symbols, and the Floor 
Broker will be paid a rebate of $0.20 per contract. The surcharge 
and the rebate will not apply to index options and singly listed 
options . . . strategy transactions (dividend, merger, short stock 
interest, reversal and conversion, jelly roll and box spread 
strategies), Floor Qualified Contingent Cross Orders, or Customer 
Cross Orders).
---------------------------------------------------------------------------

    The proposed changes are effective beginning April 1, 2026.
2. Statutory Basis
    The Exchange believes that the proposed rule change is consistent 
with Section 6(b) of the Act,\19\ in general, and furthers the 
objectives of Section 6(b)(5) of the Act,\20\ in particular, in that it 
is not designed to permit unfair discrimination among customers, 
brokers, or dealers. The Exchange also believes that its proposal is 
consistent with Section 6(b)(4) of the Act \21\ because it represents 
an equitable allocation of reasonable dues, fees and other charges 
among market participants using any facility or system which the 
Exchange operates or controls.
---------------------------------------------------------------------------

    \19\ 15 U.S.C. 78f(b).
    \20\ 15 U.S.C. 78f(b)(5).
    \21\ 15 U.S.C. 78f(b)(4).
---------------------------------------------------------------------------

    The Exchange believes its proposal to assess a surcharge of $0.20 
per contract to Floor Market Maker orders that is the counterparty to 
Floor Broker Priority Customer cQFOs in Penny and non-Penny classes on 
the Trading Floor is reasonable because, even with the proposed 
surcharge, Floor Market Makers will continue to interact with Trading 
Floor orders and would not be discouraged from continuing to quote and 
trade actively on the Exchange. The Exchange believes that the proposed 
rebate of ($0.20) per contract to be paid to Floor Brokers for such 
transactions would incentivize Floor Brokers to direct additional 
Priority Customer cQFO volume to the Trading Floor, thereby creating 
more trading opportunities on the Trading Floor for all market 
participants, including Floor Market Makers. The Exchange believes that 
the proposed changes are reasonably designed to incentivize Floor 
Brokers (and other participants on the Trading Floor) to increase the 
number of cQFOs sent to the Exchange. The Exchange believes this may 
increase trading volume and create more trading opportunities for all 
market participants which, in turn, may attract additional order flow 
to the Exchange, further contributing to a deeper, more liquid market 
to the benefit of all market participants. The Exchange also notes that 
the proposed surcharge and rebate are similar in structure to a program 
offered by at least one other competing exchange that offers floor 
trading.\22\
---------------------------------------------------------------------------

    \22\ See supra note 18.
---------------------------------------------------------------------------

    The Exchange further believes the proposed surcharge is reasonable 
because it is designed to offset costs associated with the proposed 
rebate payable to Floor Brokers when their Priority Customer cQFOs 
interact with Floor Market Maker orders on the Trading Floor. To the 
extent this purpose is achieved, the Exchange believes that the 
proposed surcharge would not disincentivize market making activity on 
the Trading Floor because increased order flow from Floor Brokers 
seeking to earn the proposed rebate would result in more opportunities 
to trade for all market participants, including Floor Market Makers. To 
the extent the proposed rule change continues to attract greater volume 
and liquidity by encouraging Floor Brokers to increase their options 
volume on the Exchange in an effort to earn the proposed rebate, the 
Exchange believes the proposed changes would improve the Exchange's 
overall competitiveness and strengthen its market quality for all 
market participants. Against the backdrop of the competitive 
environment in which the Exchange operates, the proposed rule change is 
a reasonable attempt by the Exchange to increase the depth of its 
market and improve its market share relative to its competitors, 
particularly since the Trading Floor is less than a year into 
operations and seeks growth opportunities for its market.
    The Exchange believes it is equitable to apply the proposed rebate 
only to Floor Brokers and not Floor Market Makers. Floor Market Makers 
represent their own interest on the Trading Floor and, therefore, the 
Exchange believes these market participants may not need a similar 
incentive. Unlike Floor Market Makers, Floor Brokers act as agents in 
representing orders on the Exchange's Trading Floor. Participants who 
desire to have a Priority Customer order executed on the Trading Floor 
would provide that order to a Floor Broker to

[[Page 20526]]

be represented. Floor Market Makers may interact with orders 
represented by the Floor Broker in open outcry on the Trading Floor. 
Finally, Floor Market Makers may choose to conduct their business on a 
Trading Floor or in an electronic market, unlike Floor Brokers, who 
have a business model that is naturally tied to the physical trading 
space.
    The Exchange believes the proposed rule change is equitable because 
the proposed rebate is based on the amount and type of business 
transacted on the Exchange, and Floor Brokers may elect to earn the 
proposed rebate if they choose. The Exchange also believes that the 
proposed surcharge is equitable because it is designed to balance costs 
associated with encouraging increased execution opportunities on the 
Trading Floor, and an increase in such orders would in turn enhance 
trading opportunities for all market participants. The Exchange also 
believes that the proposed rebate to Floor Brokers is equitable because 
it is intended to support Floor Brokers' role in facilitating the 
execution of open outcry orders, a function which benefits all market 
participants on the Trading Floor.
    Moreover, the proposal is designed to incentivize participation on 
the Trading Floor in an effort to make the Exchange a primary execution 
venue and to attract more open outcry transactions to the Exchange 
especially since the Exchange's Trading Floor recently launched 
operations. To the extent that the proposed change attracts more Floor 
Broker orders to the Exchange, this increased order flow would continue 
to make the Exchange a more competitive venue for, among other things, 
order execution. Thus, the Exchange believes the proposed rule change 
would improve market quality for all market participants on the 
Exchange and, as a consequence, attract more order flow to the Exchange 
thereby improving market-wide quality and price discovery.
    The Exchange believes it is not unfairly discriminatory to impose a 
surcharge on Floor Market Maker orders on the Trading Floor that are a 
counterparty to a Priority Customer cQFO transaction executed by a 
Floor Broker because the proposed change would apply to all Floor 
Market Maker orders equally, and, as discussed above, the Exchange 
believes it is not unfairly discriminatory to incent order flow to the 
Trading Floor, which may enhance liquidity on the Exchange to the 
benefit of all market participants. The Exchange also believes that the 
proposed rebate payable to Floor Brokers for a Priority Customer cQFO 
transaction that trades with a Floor Market Maker order is not unfairly 
discriminatory because it would be available to all similarly-situated 
market participants on an equal and non-discriminatory basis.
    Finally, the Exchange believes that it is subject to significant 
competitive forces, as described below in the Exchange's statement 
regarding the burden on competition. The Exchange's proposal to exclude 
cQCC, cC2C and Strategy transactions is reasonable, equitable and not 
unfairly discriminatory. Trading Floor cQCC and cC2C are not transacted 
in open outcry. The Exchange would apply the exclusions in a uniform 
manner to all Floor Participants.\23\
---------------------------------------------------------------------------

    \23\ The term ``Floor Participant'' means Floor Brokers as 
defined in Rule 2015 and Floor Market Makers as defined in Rule 
2105(b). See the Definitions section of the Fee Schedule and 
Exchange Rule 100.
---------------------------------------------------------------------------

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

    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.
Inter-Market Competition
    The proposal does not impose an undue burden on inter-market 
competition. The Exchange believes its proposal remains competitive 
with at least one other options exchange that offers a similar 
surcharge and rebate program and this proposal will offer market 
participants with another choice of where to transact options. The 
Exchange notes that it operates in a highly competitive market in which 
market participants can readily favor competing venues if they deem fee 
levels at a particular venue to be excessive, or rebate opportunities 
available at other venues to be more favorable. In such an environment, 
the Exchange must continually adjust its fees to remain competitive 
with other exchanges. Because competitors are free to modify their own 
fees in response, and because market participants may readily adjust 
their order routing practices, the Exchange believes that the degree to 
which fee changes in this market may impose any burden on competition 
is extremely limited.
    The Exchange believes that the proposed rule change reflects this 
competitive environment because it modifies the Exchange's fees and 
rebates in a manner designed to continue to incent participants on the 
Trading Floor to direct trading interest to the Exchange, to provide 
liquidity and to attract additional order flow. To the extent that 
Floor Brokers are encouraged to utilize the Exchange as a primary 
trading venue for all transactions, all Exchange market participants 
stand to benefit from the improved market quality and increased 
opportunities for price improvement. The Exchange notes that it 
operates in a highly competitive market in which market participants 
can readily favor competing venues. In such an environment, the 
Exchange must continually review, and consider adjusting, its fees and 
credits to remain competitive with other exchanges. For the reasons 
described above, the Exchange believes that the proposed rule change 
reflects this competitive environment.
Intra-Market Competition
    In accordance with Section 6(b)(8) of the Act, the Exchange does 
not believe that the proposed rule change would impose any burden on 
competition that is not necessary or appropriate in furtherance of the 
purposes of the Act. Instead, as discussed above, the Exchange believes 
that the proposed changes would encourage the submission of additional 
liquidity to a public exchange, thereby promoting market depth, price 
discovery and transparency and enhancing order execution opportunities 
for all market participants. As a result, the Exchange believes that 
the proposed change furthers the Commission's goal in adopting 
Regulation NMS of fostering integrated competition among orders.
    The proposed changes are designed to attract additional order flow 
to the Trading Floor. The Exchange believes that the proposed surcharge 
assessed to Floor Market Maker orders that interact with Floor Broker 
Priority Customer cQFOs on the Trading Floor and the proposed rebate 
payable to the Floor Broker would encourage Floor Broker open outcry 
order flow and would not disincentivize Floor Market Maker activity on 
the Trading Floor. Greater liquidity benefits all market participants 
on the Exchange and increased order flow would increase opportunities 
for execution of other trading interest. The proposed modifications 
would apply and be available to all similarly-situated market 
participants that execute open outcry on the Trading Floor, and, 
accordingly, the proposed changes would not impose a disparate burden 
on competition among market participants on the Exchange. Finally, the 
Exchange would apply the proposed exclusions described in proposed 
footnote 1 in a uniform manner to all Floor Participants.

[[Page 20527]]

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

    The foregoing rule change has become effective pursuant to Section 
19(b)(3)(A)(ii) of the Act,\24\ and Rule 19b-4(f)(2) \25\ thereunder. 
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. If the Commission takes such 
action, the Commission shall institute proceedings to determine whether 
the proposed rule should be approved or disapproved.
---------------------------------------------------------------------------

    \24\ 15 U.S.C. 78s(b)(3)(A)(ii).
    \25\ 17 CFR 240.19b-4(f)(2).
---------------------------------------------------------------------------

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

    •  Use the Commission's internet comment form (https://www.sec.gov/rules/sro.shtml); or
    •  Send an email to rule-comments@sec.gov. Please include 
file number SR-SAPPHIRE-2026-14 on the subject line.

Paper Comments

    •  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-SAPPHIRE-2026-14. 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 (https://www.sec.gov/rules/sro.shtml). 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-SAPPHIRE-2026-14 and should be submitted 
on or before May 7, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\26\
---------------------------------------------------------------------------

    \26\ 17 CFR 200.30-3(a)(12).
---------------------------------------------------------------------------

Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-07347 Filed 4-15-26; 8:45 am]
BILLING CODE 8011-01-P