Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of Filing and Immediate Effectiveness of a Proposed Rule Change To Make Clarifying Changes to the Rule Text Related to the Trading Floor

[Federal Register Volume 91, Number 73 (Thursday, April 16, 2026)]
[Notices]
[Pages 20519-20523]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-07348]


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SECURITIES AND EXCHANGE COMMISSION

[Release No. 34-105217; File No. SR-SAPPHIRE-2026-16]


Self-Regulatory Organizations; MIAX Sapphire, LLC; Notice of 
Filing and Immediate Effectiveness of a Proposed Rule Change To Make 
Clarifying Changes to the Rule Text Related to the Trading Floor

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 and II below, which Items have been prepared by the Exchange. 
The Commission is publishing this notice to solicit comments on the 
proposed rule change from interested persons.
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    \1\ 15 U.S.C. 78s(b)(1).
    \2\ 17 CFR 240.19b-4.
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I. Self-Regulatory Organization's Statement of the Terms of Substance 
of the Proposed Rule Change

    The Exchange proposes to make clarifying changes to the rule text.
    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 make clarifying changes to select 
provisions in the Exchange's Rulebook. These proposed changes are 
intended to

[[Page 20520]]

provide additional detail and clarity regarding trading on the 
Exchange's Trading Floor.\3\ There is no change to any Exchange 
functionality, its operation, or any policy or procedure.
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    \3\ 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 Pit 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.
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Background
    On the Exchange's Trading Floor, liquidity is provided by Floor 
Participants,\4\ including Floor Market Makers.\5\ After a Floor Broker 
\6\ announces and exposes a single-sided or two-sided order, a 
Qualified Floor Order or ``QFO,'' to the trading crowd on the Floor, 
the Floor Broker submits any resulting two-sided executed order into 
the Exchange's System,\7\ to facilitate post-trade workflows as 
described below. All QFOs are subject to an open outcry process prior 
to submission to the System to facilitate post-trade workflows. During 
the open outcry process, the Floor Broker must provide Floor 
Participants a reasonable amount of time to respond with interest in 
trading against the order held by the Floor Broker.\8\ Floor 
Participants respond at their discretion, indicating their interest (if 
any) in trading against the order. The Floor Broker then makes 
allocations (if any) to the responding Floor Participants, as required, 
in accordance with the Exchange's allocation rules as set forth in the 
Exchange Rulebook. At this point, the QFO is considered executed. Then 
the Floor Broker must submit the executed QFO to the System \9\ without 
undue delay.\10\ The execution price must be equal to or better than 
the NBBO,\11\ with certain exceptions, and may not trade through any 
equal priced or better priced Priority Customer \12\ bids or offers on 
the Electronic Book \13\ or trade through any better priced 
interest.\14\ The highest bid (or lowest offer) has priority, but where 
two or more bids (or offers) represent the highest (or lowest) price, 
priority is afforded to such bids (or offers) in the sequence in which 
they are made.\15\ The Floor Broker is responsible for handling all 
orders in accordance with the Exchange's priority and trade-through 
rules and for determining the sequence in which bids or offers are 
vocalized on the Trading Floor in response to the Floor Broker's bid, 
offer, or call for a market.\16\ For instance, when a Floor Broker 
executes a single-leg QFO, the Floor Broker shall ensure that the 
execution price must be equal to or better than the NBBO, subject to 
the exceptions in Rule 1401(b). Additionally, the Floor Broker shall 
ensure that the QFO may not (1) trade through any equal or better 
priced Priority Customer bids or offers on the Simple Order Book; or 
(2) trade through any interest on the Simple Order Book that is priced 
better than the proposed execution price.\17\ If Floor Participants 
provide a collective response to a Floor Broker's request for a market 
in order to fill a large order and the size of the trading crowd's 
market exceeds the size of the order to be filled, that order will be 
allocated on a size pro rata basis.\18\
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    \4\ The term ``Floor Participant'' means Floor Brokers as 
defined in Rule 2015 and Floor Market Makers as defined in Rule 
2105(b). See Exchange Rule 100.
    \5\ 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).
    \6\ 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. A Floor Broker must be registered as a 
Floor Participant prior to registering as a Floor Broker. A Floor 
Broker may take into his own account, and subsequently liquidate, 
any position that results from an error made while attempting to 
execute, as Floor Broker, an order. See Exchange Rule 2015.
    \7\ The term ``System'' means the automated trading system used 
by the Exchange for the trading of securities. See Exchange Rule 
100.
    \8\ See Exchange Rule 2040, Interpretations and Policies .09. A 
Floor Participant must verbalize that he is ``in'' after a Floor 
Broker announces an order, even if a valid quote has been provided 
by the Floor Participant prior to the announcement of the order by a 
Floor Broker.
    \9\ See supra note 7.
    \10\ See Exchange Rule 2040(c).
    \11\ The term ``NBBO'' means the national best bid or offer as 
calculated by the Exchange based on market information received by 
the Exchange from OPRA. See Exchange Rule 100.
    \12\ ``Priority Customer'' is defined as 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 accounts. See Exchange Rule 
100.
    \13\ The term ``Electronic Book'' means the Exchange's Simple 
Order Book and Strategy Book. The ``Simple Order Book'' is the 
Exchange's regular electronic book of orders and quotes. The 
``Strategy Book'' is the Exchange's electronic book of complex 
orders. See Exchange Rule 100.
    \14\ See Exchange Rule 2040(c).
    \15\ See Exchange Rule 2045(a) and (b). If the bids (or offers) 
of two or more Floor Participants are made simultaneously, or if it 
is impossible to determine clearly the order of time in which they 
are made, such bids (or offers) will be deemed to be on parity and 
priority will be afforded to them, insofar as practicable, on an 
equal basis. See Exchange Rule 2045(c). Exchange Rules also provide 
split-price priority to a Floor Participant that buys (sells) one or 
more contracts at one price with respect to buying (selling) the 
same number of contracts at the next lower (higher) price. See 
Exchange Rule 2040(i).
    \16\ See Exchange Rules 2040(a) and 2045(d)(1).
    \17\ See Exchange Rule 2040(c).
    \18\ See Exchange Rule 2045(d)(5). In such circumstances, the 
size of the order to be allocated will be multiplied by the size of 
an individual Floor Participant's quote divided by the aggregate 
size of all Floor Participants' quotes. See Exchange Rule 
2045(d)(5)(ii).
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Proposal
    The Exchange proposes to make clarifying changes to certain 
provisions in Exchange Rule 2030, Responsibilities of Floor Brokers; 
Rule 2040, Qualified Floor Orders; and Rule 2055, Clerks, to more 
accurately describe order processing on the Exchange's Trading Floor.
Exchange Rule 2030, Responsibilities of Floor Brokers
    The Exchange proposes to amend the announcement provision of 
Exchange Rule 2030. Currently, Rule 2030(e)(2) provides that, ``[a] 
Floor Broker must announce an agency order that the Floor Broker is 
representing to the trading crowd before submitting the order to the 
Exchange's System for execution. This announcement must take place 
whether the Floor Broker is representing a single-sided order and 
soliciting contra-side interest, or the Floor Broker has sufficient 
interest to match against the agency order already. If a Floor Broker 
is holding two non-Priority Customer agency orders or two Priority 
Customer agency orders, the Floor Broker will choose which order is the 
agency order. If only one of the agency orders is for the account of a 
Priority Customer, that order must be the agency order.''
    The Exchange proposes to amend the first sentence of Rule 
2030(e)(2) to better clarify the stages of an order on the Trading 
Floor and the processing that is performed when the executed order is 
submitted to the Exchange's System. Specifically, the Exchange proposes 
to revise this sentence to provide that, ``[a] Floor Broker must 
announce an agency order that the Floor Broker is representing to the 
trading crowd before submitting the two-sided executed order to the 
Exchange's System to facilitate post-trade workflows.'' The Exchange 
believes this language properly delineates that an order is executed on 
the trading floor but must still undergo post-trade validation, 
designed to ensure regulatory conformity, prior to being treated as a 
validated trade (e.g., transmitted to the OCC).
    The Exchange also proposes to make a similar change to Policy .02 
of Exchange Rule 2030. Currently, Interpretation and Policy .02 to Rule 
2030 provides that, ``Floor Brokers must make reasonable efforts to 
ascertain

[[Page 20521]]

whether each order entrusted to them is for the account of a Priority 
Customer or a broker-dealer. If it is ascertained that the order is for 
the account of a broker-dealer, the responsible Floor Broker must 
advise the trading crowd of that fact prior to bidding/offering on 
behalf of the order or submitting the order for execution. The Floor 
Broker or his employees must make the appropriate notation in their 
system when it has been determined that the order is for an account of 
a broker-dealer.''
    The Exchange now proposes to amend the second sentence of 
Interpretation and Policy.02 of Exchange Rule 2030 to properly align it 
to the lifecycle of an order executed on the Trading Floor. 
Specifically, the Exchange proposes to amend the sentence to provide 
that, ``[i]f it is ascertained that the order is for the account of a 
broker-dealer, the responsible Floor Broker must advise the trading 
crowd of that fact prior to bidding/offering on behalf of the order or 
submitting the two-sided executed order into the Exchange's System to 
facilitate post-trade workflows.'' The Exchange believes this revision 
better encapsulates order processing on the Trading Floor.
Rule 2040, Qualified Floor Orders
    The Exchange proposes to amend Exchange Rule 2040(a), (b), (c), and 
(h) to clarify that the Exchange's System does not execute QFOs. 
Rather, QFOs are executed on the Trading Floor and are only submitted 
to the Exchange's System to facilitate post-trade workflows. After QFOs 
are executed on the Trading Floor, they are subject to post-trade 
validation. Post-trade workflows include validating that the trade 
price is in compliance with Regulation NMS (National Market System) or 
(``Reg NMS''), the Options Locked and Crossed Market Plan, and Trading 
Floor Price Collar Protection (``TFPCP''), and also validating that the 
QFO is handled in accordance with the Exchange priority rules, and 
recording the transaction by the Exchange. If a QFO fails post-trade 
validation, it will be invalidated. The trading workflow on the Trading 
Floor starts when a Floor Broker receives or forms a fully paired order 
or a one-sided order through any of their own proprietary systems or 
sources (from clients directly, messaging systems, etc.). The Floor 
Broker will then announce, as required, the agency side of the paired 
order or the one-sided order to the trading crowd, including 
underlying, contract details, side, price, and total size of the order. 
Floor Participants will respond at their discretion, indicating their 
interest on the contra side of the trade. The Floor Broker will 
indicate allocations to each of the responding Floor Participants, as 
required, in accordance with the Exchange's allocation rules \19\ as 
set forth in the Exchange Rulebook. At this point, the QFO is 
considered executed. The purpose of submitting the QFO to the 
Exchange's System is to facilitate post-trade workflows. Post-trade 
workflows include validating that the trade price is in compliance with 
Reg NMS, the Options Locked and Crossed Market Plan, and TFPCP, and 
also validating that the QFO is handled in accordance with the Exchange 
priority rules, and recording the transaction by the Exchange. As part 
of post-trade workflows, the System validates that there are no 
contracts on the Electronic Book that have priority over the contra-
side order, among other things. A Floor Broker may, but is not required 
to, provide a maximum surrender size.\20\ The maximum surrender size is 
a feature offered by the Exchange, which facilitates a process which 
could otherwise be completed by the Floor Broker, whereby the Floor 
Broker provides an instruction to the System to sweep the Electronic 
Book as needed for higher priority liquidity.\21\ Pursuant to the 
maximum surrender size feature, if the number of contracts on the 
Electronic Book that have priority over the contra-side order is less 
than or equal to the maximum surrender size the QFO (cQFO) is treated 
as valid, however, the contracts on the initiating side of the QFO 
(cQFO) will be allocated against contracts on the Electronic Book with 
higher priority over the contra-side of the order.\22\ The number of 
contracts to be crossed will be reduced by the number of contracts on 
the Electronic Book with higher priority over the contra-side of the 
QFO. The remaining balance of contracts on the initiating side of the 
QFO (cQFO) will be allocated against the contracts on the contra-side 
of the QFO in accordance with Exchange Rule 2040(d). If the number of 
contracts on the Electronic Book with higher priority over the contra-
side of the QFO is greater than the maximum surrender size, then the 
QFO is invalidated and the Floor Broker is notified.\23\ An 
invalidation message stating that the QFO is invalidated and the reason 
why it is invalidated will be sent to the Floor Broker. The Floor 
Broker may address the issue identified in the invalidation message and 
resubmit the QFO to the System. Alternatively, the Floor Broker may 
elect not to resubmit the QFO. The Exchange proposes to amend Exchange 
Rules 2040(d)(1), (2) and (3) to clarify the allocation rules. Exchange 
Rules 2040(d)(1) and (2) currently state that, provided that an 
adequate maximum surrender size was provided by the Floor Broker, the 
initiating side of the QFO (cQFO) will match against any bids or offers 
on the Simple Order Book (Strategy Book) priced better than the contra-
side, then match against Priority Customer Orders on the Simple Order 
Book (Strategy Book), along with any bids or offers of non-Priority 
Customers ranked ahead of such Priority Customer Orders on the Simple 
Order Book (Strategy Book). Last, Exchange Rule 2040(d)(3) currently 
provides that, the remaining balance of the initiating side of the QFO 
(cQFO) will match against the contra-side of the QFO (cQFO). The 
Exchange proposes to amend Exchange Rule 2040(d) to provide that the 
initiating side of QFO will be allocated against, not match against, 
any contracts on the Electronic Book with higher priority over the 
contra-side of the QFO. This is to clarify that the System does not 
match QFOs (e.g., when the number of contracts on the Electronic Book 
with higher priority over the contra-side of the QFO is greater than 
the maximum surrender size, the QFO is simply invalidated). Rather, 
QFOs are matched by Floor Brokers and executed on the Trading Floor. 
Proposed Exchange Rule 2040 would provide how a QFO is allocated, not 
how a QFO is matched. In addition, the Exchange proposes to remove ``by 
the System'' from the first sentence of Exchange Rule 2040(d)(3). This 
is to clarify that it is the Floor Broker who will allocate the 
initiating side the QFO (cQFO) against the contra-side of the QFO 
(cQFO), not the Exchange's System.
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    \19\ See Exchange Rule 2040(d).
    \20\ See Exchange Rule 2040(h).
    \21\ The maximum surrender size is an optional feature that 
assist. Floor Brokers by eliminating the need to send a separate 
order to clear higher priority liquidity on the Electronic Book.
    \22\ See Exchange Rule 2040(d)(1).
    \23\ See proposed Exchange Rule 2040(h).
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    The Exchange proposes to amend Exchange Rule 2040(h) to clarify how 
the initiating side of the QFO (cQFO) is allocated provided that an 
adequate maximum surrender size was provided by the Floor Broker. 
Specifically, the Exchange proposes to amend the last sentences of the 
first and second paragraphs in Exchange Rule 2040(h) to clarify that if 
the number of contracts on the Electronic Book that have priority over 
the contra-side order is less than or equal to the maximum surrender 
size, then the initiating side of the QFO (cQFO) will be allocated 
against any bids or offers on the Simple Order Book (Strategy Book) 
with higher priority over the contra-side of the QFO (cQFO), and

[[Page 20522]]

the remaining balance of the initiating side of QFO (cQFO) will be 
allocated against the contra-side of the QFO (cQFO). The purpose of the 
proposed changes is to add more detail within the Rulebook as to how 
the initiating side of the QFO (cQFO) is allocated provided that an 
adequate maximum surrender size was provided by the Floor Broker. The 
proposed changes to Rule 2040(h) are consistent with allocation rules 
set forth in proposed Exchange Rule 2040(d).
    The Exchange proposes to add ``as an instruction to the System'' at 
the end of the first sentence of the first and second paragraphs in 
Exchange Rule 2040(h). The purpose of the proposed changes is to 
specify that the maximum surrender size is the instruction provided by 
the Floor Broker to the Exchange to clear a certain number of contracts 
on the Simple Order Book and Strategy Book that have priority over the 
contra-side order.
    The Exchange also proposes to add a sentence specifying that ``[i]f 
the Floor Broker fails to provide a maximum surrender size, such value 
shall be deemed to be zero'' after the second sentence of both of the 
first and second paragraphs in Exchange Rule 2040(h). As mentioned 
above, the maximum surrender size is the instruction provided by the 
Floor Broker to the Exchange to clear a certain number of contracts on 
the Simple Order Book and Strategy Book that have priority over the 
contra-side order. The Exchange does not clear any contracts on the 
Simple Order Book and Strategy Book unless there is a clear instruction 
provided by the Floor Broker, therefore, the Exchange believes that it 
is appropriate to set the default value of the maximum surrender size 
as zero if the Floor Broker fails to provide a maximum surrender size. 
The purpose of the proposed changes is to specify that the maximum 
surrender size shall be deemed to be zero, unless a maximum surrender 
size is expressly provided by the Floor Broker.
    The Exchange proposes to remove ``electronic'' from the second 
sentence of Exchange Rule 2055(f)(2). Currently, Exchange Rule 2055 
provides that ``. . . [a] Floor Market Maker Clerk may consummate 
electronic transactions under the express direction of his or her Floor 
Market Maker employer by matching bids and offers . . .'' The Exchange 
proposes to remove ``electronic'' from Exchange Rule 2055(f)(2). The 
Exchange does maintain a separate, fully automated electronic options 
matching engine, however, the Exchange notes that its electronic 
matching engine operates completely independent from its Trading Floor 
trade matching process. The transactions occurring on the Trading Floor 
are executed on the Trading Floor, and then the two-sided executed 
transactions are submitted to the Exchange's System to facilitate post-
trade workflows as discussed above. The purpose of the proposed rule 
change is to clarify that the transactions occurring on the Trading 
Floor are separate and distinct from transactions occurring in the 
electronic market and Floor Market Maker Clerks are only involved in 
the transactions occurring on the Trading Floor.
    The Exchange proposes to add ``on the Simple Order Book'' at the 
end of Exchange Rule 2040(a)(6). The purpose of the proposed change is 
to add greater detail to the Exchange's Rulebook and make it easier to 
understand. QFOs may be complex orders as defined in proposed Exchange 
Rule 518. A ``complex order'' is any order involving the concurrent 
purchase and/or sale of two or more different options in the same 
underlying security (the ``legs'' or ``components'' of the complex 
order), for the same account, in a conforming or non-conforming ratio 
as defined below for the purposes of executing a particular investment 
strategy.\24\ For a cQFO to be valid, all of the components need to be 
open for trading on the Simple Order Book. In addition, for stock-tied 
cQFOs, the stock must be open for trading.
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    \24\ See Exchange Rule 518(a).
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    The Exchange proposes to add a comma after ``If'' in the beginning 
of the last sentence in Exchange Rule 2040(d)(3). The purpose of the 
proposed change is to correct grammatical error and make it easier to 
interpret the Exchange's Rulebook.
    In addition, the Exchange propose to replace ``Complex QFO'' with 
``cQFO'' throughout Exchange Rule 2040. Complex QFO is cQFO, as defined 
in Rule 2040(a)(6). This is to add more clarity and consistency within 
the Rulebook.
    The Exchange does not propose to amend any existing functionality 
of the Exchange's System with this proposal. The Exchange proposes to 
make clarifying changes to select provisions in the Exchange's 
Rulebook. These proposed changes are intended to provide additional 
detail and clarity regarding trading on the Exchange's Trading Floor. 
There is no change to any Exchange functionality, its operation, or any 
policy or procedure. These proposed non-substantive changes would 
ensure that the Exchange's Rules are not misleading and easier to 
understand.
2. Statutory Basis
    The proposed rule change is consistent with Section 6(b) of the 
Act,\25\ in general, and furthers the objectives of Section 6(b)(5) 
\26\ of the Act in particular, in that it is designed to promote just 
and equitable principles of trade, to foster cooperation and 
coordination with persons engaged in 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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    \25\ 15 U.S.C. 78f(b).
    \26\ 15 U.S.C. 78f(b)(5).
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    The Exchange proposes to make clarifying changes to the rule text. 
The proposal to amend Exchange Rule 2030(e)(2), Interpretation and 
Policy .02 to Exchange Rule 2030, and Exchange Rule 2040(a), (b), (c), 
and (h) is to clarify that the Exchange's System does not execute QFOs. 
Rather, the QFOs are submitted to the Exchange's System to facilitate 
post-trade workflows. QFOs are executed on the Trading Floor and 
subject to post-trade validation. If a QFO fails post-trade validation, 
it is invalidated. The proposal to amend Exchange Rule 2040(d) is to 
provide that the initiating side of QFO will be allocated against, not 
match against, any contracts on the Electronic Book with higher 
priority over the contra-side of the QFO, and to clarify that it is the 
Floor Broker who will match the initiating side the QFO (cQFO) against 
the contra-side of the QFO (cQFO), not the Exchange's System. The 
proposed change to add ``as an instruction to the System'' at the end 
of the first sentence of the first and second paragraphs in Exchange 
Rule 2040(h) is to specify that the maximum surrender size is the 
instruction provided by the Floor Broker to the Exchange to clear a 
certain number of contracts on the Simple Order Book and Strategy Book 
that have priority over the contra-side order. The proposed change to 
amend Exchange Rule 2040(h) is to specify that the maximum surrender 
size shall be deemed to be zero, unless a maximum surrender size is 
expressly provided by the floor broker and to add more detail within 
the Rulebook as to how the initiating side of the QFO (cQFO) is 
allocated provided that an adequate maximum surrender size was provided 
by the Floor Broker. The proposal to amend Exchange Rule 2055(f)(2) is 
to clarify that the transactions occurring on the Trading Floor are 
separate and

[[Page 20523]]

distinct from transactions occurring in the electronic market and Floor 
Market Maker Clerks are only involved in transactions on the Trading 
Floor. The proposed change to add ``on the Simple Order Book'' at the 
end of Exchange Rule 2040(a)(6) is to add greater detail to the 
Exchange's Rulebook. The proposed change to add a comma after ``If'' in 
the beginning of the last sentence in Exchange Rule 2040(d)(3) is to 
correct grammatical error and make it easier to interpret the 
Exchange's Rulebook. The proposal to replace ``Complex QFO'' with 
``cQFO'' throughout Exchange Rule 2040 is to add more clarity and 
consistency within the Rulebook. The Exchange does not propose to amend 
any existing functionality of the Exchange's System with this proposal. 
The Exchange proposes to make clarifying changes to select provisions 
in the Exchange's Rulebook. These proposed changes are intended to 
provide additional detail and clarity regarding trading on the 
Exchange's Trading Floor. There is no change to any Exchange 
functionality, its operation, or any policy or procedure.
    These proposed non-substantive changes would ensure that the 
Exchange's Rules are not misleading and easier to understand. In 
addition, the proposed rule changes would reduce potential investor and 
market participant confusion and therefore remove impediments to and 
perfect the mechanism of a free and open market and a national market 
system by ensuring that investors and market participants can more 
easily navigate, understand and comply with the Exchange's Rules. The 
Exchange also believes that the proposed rule changes would remove 
impediments to and perfects the mechanism of a free and open market by 
ensuring that persons subject to the Exchange's jurisdiction, 
regulators, and the investing public can more easily navigate and 
understand the Exchange's Rules. The proposed rule changes are not 
inconsistent with the public interest and the protection of investors 
because investors will not be harmed and in fact would benefit from the 
increased transparency and clarity, thereby reducing potential 
confusion.

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

    The Exchange does not believe that the proposed rule changes will 
impose any burden on competition that is not necessary or appropriate 
in furtherance of the purposes of the Act.
Intramarket Competition
    The Exchange believes the proposed rule changes do not impose any 
burden on intramarket competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule changes 
are not intended to address competitive issues but rather are concerned 
solely with making clarifying changes to the rule text with no proposed 
changes to related functionality.
Intermarket Competition
    The Exchange believes the proposed rule changes do not impose any 
burden on intermarket competition that is not necessary or appropriate 
in furtherance of the purposes of the Act. The proposed rule changes 
are not intended to address competitive issues but rather are concerned 
solely with making clarifying changes to the rule text with no proposed 
changes to related functionality.

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 Exchange has designated this rule filing as non-controversial 
under Section 19(b)(3)(A) of the Act \27\ and Rule 19b-4(f)(6) \28\ 
thereunder. Because the proposed rule change does not: (i) 
significantly affect the protection of investors or the public 
interest; (ii) impose any significant 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) of the Act \29\ and Rule 19b-
4(f)(6) \30\ thereunder.
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    \27\ 15 U.S.C. 78s(b)(3)(A).
    \28\ 17 CFR 240.19b-4(f)(6).
    \29\ 15 U.S.C. 78s(b)(3)(A).
    \30\ 17 CFR 240.19b-4(f)(6). In addition, Rule 19b-4(f)(6)(iii) 
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.
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    At any time within 60 days of the filing of this proposed rule 
change, the Commission summarily may temporarily suspend such rule 
change if it appears to the Commission that such action is necessary or 
appropriate in the public interest, for the protection of investors, or 
otherwise in furtherance of the purposes of the Act.

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-2026-16 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-2026-16. 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-2026-16 and should be submitted 
on or before May 7, 2026.

    For the Commission, by the Division of Trading and Markets, 
pursuant to delegated authority.\31\
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    \31\ 17 CFR 200.30-3(a)(12).
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Sherry R. Haywood,
Assistant Secretary.
[FR Doc. 2026-07348 Filed 4-15-26; 8:45 am]
BILLING CODE 8011-01-P