Market Maker Orders Permitted in Facilitation, Solicited Order, and Price Improvement Mechanisms

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• Send an email to rule-comments@ Commission is publishing this notice to Market Makers assigned to the options sec.gov. Please include file number SR- solicit comments on the proposed rule class. Cboe Exchange, Inc. (''Cboe'') NasdaqTX-2026-017 on the subject change from interested persons. recently received approval to amend its line. rules in an identical manner. The 5 I. Self-Regulatory Organization's Exchange also proposes an amendment Statement of the Terms of Substance of Paper Comments to Options 5, Section 4 relating to the the Proposed Rule Change • Send paper comments in triplicate handling of Immediate-or-Cancel The Exchange proposes to permit to Secretary, Securities and Exchange Orders. 6 orders for the accounts of Market Commission, 100 F Street NE, Background Makers assigned to the options class to Washington, DC 20549-1090. be solicited for the initiating order PIM All submissions should refer to file 3 submitted for execution against an number SR-NasdaqTX-2026-017. This A PIM Auction is an electronic agency order into a Facilitation file number should be included on the auction intended to provide an Agency Mechanism, the Solicited Order subject line if email is used. To help the Order with the opportunity to receive Mechanism (''SOM'') or a Price Commission process and review your price improvement (over the National Improvement Mechanism (''PIM'') as comments more efficiently, please use Best Bid or Offer (''NBBO'')). There is no well as a FLEX PIM or FLEX SOM. only one method. The Commission will specific size requirement for a PIM The text of the proposed rule change post all comments on the Commission's Auction. Upon submitting an Agency is available on the Exchange's website at internet website (https://www.sec.gov/ Order into a PIM, the initiating https://listingcenter.nasdaq.com/ rules/sro.shtml). Copies of the filing will Electronic Access Member must also rulebook/ise/rulefilings, and at the be available for inspection and copying submit a contra-side paired order. The principal office of the Exchange. at the principal office of the Exchange. initiating order guarantees that the Do not include personal identifiable II. Self-Regulatory Organization's Agency Order will receive an execution information in submissions; you should Statement of the Purpose of, and at no worse than the auction price. submit only information that you wish Statutory Basis for, the Proposed Rule Upon commencement of an auction, to make available publicly. We may Change market participants may submit redact in part or withhold entirely from responses to trade against the Agency In its filing with the Commission, the publication submitted material that is Order. At the conclusion of a PIM, the Exchange included statements 7obscene or subject to copyright Agency Order will be executed in full at concerning the purpose of and basis for protection. All submissions should refer the best prices available, taking into the proposed rule change and discussed to file number SR-NasdaqTX-2026-017 consideration orders and quotes in the any comments it received on the and should be submitted on or before Exchange market and Improvement proposed rule change. The text of these May 13, 2026. Orders. ISE's PIM is very similar to statements may be examined at the 8 Cboe's Automated Price Improvement For the Commission, by the Division of places specified in Item IV below. The Mechanism or ''AIM.'' Options 3A, Trading and Markets, pursuant to delegated Exchange has prepared summaries, set 9 Section 12 describes a FLEX PIM authority. forth in sections A, B, and C below, of 20 Auction. ISE's FLEX PIM is consistent Vanessa A. Countryman, the most significant aspects of such with non-FLEX PIM auction behavior. Secretary. statements. 10 [FR Doc. 2026-07780 Filed 4-21-26; 8:45 am] A. Self-Regulatory Organization's See Securities Exchange Act Release No. 105049 5BILLING CODE 8011-01-P Statement of the Purpose of, and (March 19, 2026), 91 FR 14057 (March 24, 2026) Statutory Basis for, the Proposed Rule (SR-Cboe-2025-090). Change Immediate-or-Cancel is an order entered with a SECURITIES AND EXCHANGE 6 TIF of ''IOC'' that is to be executed in whole or in COMMISSION 1. Purpose part upon receipt. Any portion not so executed is to be treated as cancelled. See Supplementary [Release No. 34-105266; File No. SR-ISE- Material .02(d) to Options 3, Section 7. 2026-18] See Options 3, Section 13(c)(2). Responses in 7 Options 3, Section 11 (Auction PIM are called Improvement Orders. See also Self-Regulatory Organizations; Nasdaq Options 3A, Section 13(c)(5). Mechanisms), Supplementary Material ISE, LLC; Notice of Filing and The Agency Order will receive executions at .06 to Options 3, Section 13 (Price 8Immediate Effectiveness of Proposed multiple price levels if there is insufficient size to Improvement Mechanism for Crossing execute the entire order at the best price. See Rule Change To Amend Various Transactions), Options 3A, Section 12 Options 3, Section 13(d). Auction Mechanisms (FLEX Price Improvement Mechanism An AIM Auction is an electronic auction 9 intended to provide an Agency Order with the (''FLEX PIM'' or ''FLEX PIM Auction'')) April 17, 2026. opportunity to receive price improvement (over the and Supplementary Material .02 to Pursuant to Section 19(b)(1) of the National Best Bid or Offer (''NBBO'')). Upon Options 3A, Section 13 (FLEX Solicited Securities Exchange Act of 1934 submitting an Agency Order into an AIM Auction, Order Mechanism (''FLEX SOM'' or (''Act''), and Rule 19b-4 thereunder, the initiating Trading Permit Holder (''Initiating 1 2 TPH'') must also submit a contra-side second order ''FLEX SOM Auction'')) to permit orders notice is hereby given that on April 13, (''Initiating Order'') for the same size as the Agency by Members in a Facilitation 2026, Nasdaq ISE, LLC (''ISE'' or Order. The Initiating Order guarantees that the Mechanism, a SOM, a PIM, a FLEX PIM ''Exchange'') filed with the Securities Agency Order will receive an execution at no worse or a FLEX SOM to trade against the and Exchange Commission (''SEC'' or than the auction price. Upon commencement of an auction, market participants may submit responses Agency Orders for the accounts of ''Commission'') the proposed rule 4 to trade against the Agency Order. See Cboe Rule change as described in Items I, II, and 5.37(c)(5). At the conclusion of an AIM Auction, III, below, which Items have been The ''initiating order'' is the order comprised of depending on the contra-side interest (including 3prepared by the Exchange. The principal interest or a solicited order(s) submitted auction responses) available, the Initiating Order to trade against the order the submitting Electronic may be allocated a certain percentage (or more) of Access Member represents as agent (the ''Agency the Agency Order. See Cboe Rule 5.37(e). 17 CFR 200.30-3(a)(12). Order''). See Securities Exchange Act Release No. 20 1015 U.S.C. 78s(b)(1). Agency Orders are orders entered by a Member 101720 (November 22, 2024), 89 FR 94986 1 417 CFR 240.19b-4. that are represented as agent. (November 29, 2024) (SR-ISE-2024-12) (Notice of 2

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Primary Customer Responses at the Additionally, ISE's FLEX PIM is similar is designated as all-or-none.ISE's facilitation price, are executed in full at to Cboe Rule 5.73. SOM is very similar to Cboe's Solicited such price point. Auction Mechanism or ''SAM.'' 14SOM The Exchange notes that Cboe does Options 3A, Section 13 describes a Options 3, Section 11(d) and Options not have a Facilitation Mechanism. The FLEX SOM Auction. ISE's FLEX SOM is 3A, Section 13 contain the requirements ISE Facilitation Mechanism is similar to consistent with non-FLEX SOM auction applicable to the execution of Agency Cboe's SAM. The key differences are: behavior.Additionally, ISE's FLEX 15D the ISE Facilitation Mechanism Orders using SOM. A SOM Auction is SOM is similar to Cboe Rule 5.74. an electronic auction intended to requires a minimum of 50 contracts Facilitation Mechanism provide a larger-sized (orders of 500 or pursuant to Options 3, Section 11(b) more contracts) Agency Order with the Options 3, Section 11(b) describes a while a Cboe SAM requires a minimum opportunity to receive price Facilitation Mechanism which is an of 500 contracts pursuant to Cboe Rule improvement over the NBBO. Options 3, electronic auction intended to provide a 5.39(a)(3); Section 13 and Options 3A, Section 12 larger-sized Agency Order with the or-none allocation at Cboe Rule 5.39(e) contain the requirements applicable to opportunity to receive price while the ISE Facilitation Mechanism the execution of orders the Electronic improvement over the NBBO. Block- must be willing to execute the entire Access Member represents as agent sized orders (fifty (50) contracts or more size at Options 3, Section 11(b); and D Cboe Rule 5.39 requires that a Cboe using PIM. A PIM Auction is an pursuant to Options 3, Section 11(a)) Trading Permit Holder submit for electronic auction intended to provide may be entered into a Facilitation execution an order it represents as agent an Agency Order with the opportunity Mechanism by a Member to facilitate a (''Agency Order'') against a solicited to receive price improvement (over the customer order it represents as agent. order(s) (which cannot have a Capacity National Best Bid or Offer (''NBBO'')). Members must be willing to execute the F for the same EFID as the Agency Order Upon submitting an Agency Order into entire size of orders entered into the a SOM, the initiating Electronic Access into a SAM pursuant to Cboe Rule 5.39 Facilitation Mechanism pursuant to Member must also submit a contra-side wherein the Agency Order and Solicited Options 3, Section 11(b). Under this paired order. The initiating order Order cannot both be for the accounts of mechanism, a Member submits a guarantees that the Agency Order will Priority Customers whereas the ISE Facilitation Order along with a receive an execution at no worse than Facilitation Mechanism does not have matching contra-side order, and the the auction price. Upon commencement similar limitations. System initiates an auction during These aforementioned differences do of an auction, market participants may which other participants may submit submit responses to trade against the not result in a different analysis as to competing responses. At the conclusion Agency Order.At the conclusion of a the impact of permitting orders by of the auction, the facilitating Member 11SOM, execution will depend on Members in a Facilitation Mechanism to is entitled to a guaranteed participation whether there is sufficient size to trade against the Agency Orders for the right at the final execution price, execute the entire Agency Order at an accounts of Market Makers assigned to provided the Member's price matches or improved price (or prices)as the SOM the options class. The Exchange's improves upon the best competing 12analysis below applies to the response. Pursuant to Options 3, Section Facilitation Mechanism as it applies to 11(b)(4)(B), the facilitating Member may Filing of Amendment No. 1 and Order Granting a SOM, PIM or FLEX SOM or FLEX Accelerated Approval of a Proposed Rule Change, be allocated up to forty percent (40%) as Modified by Amendment No. 1, To Adopt Rules PIM. (or such lower percentage requested by To List and Trade FLEX Options). Footnote 136 the Member) of the original size of the notes that the Exchange's proposal will be Proposal facilitation order, but only after better- consistent with current non-FLEX auction behavior, Currently, Supplementary Material including current PIM behavior. priced Responses, orders and quotes, as .01 and .03 to Options 3, Section 11, See Options 3, Section 11(b)(3) and (d)(2) and well as Primary Customer Orders and 11Section 13(c)(2). Responses in PIM are called Supplementary Material .06 to Options Improvement Orders. See also Options 3A, Section 3, Section 13, Options 3A, Section 12, 12(c)(5) and Section 13(c)(5). See Options 3, Section 11(d). and Supplementary Material .02 to 13If at the time of execution there is insufficient A SAM Auction is an electronic auction 1214Options 3A, Section 13 prohibit orders size to execute the entire Agency Order at an intended to provide a larger-sized Agency Order improved price (or prices), the Agency Order will by Members in a Facilitation Auction, with the opportunity to receive price improvement be executed against the solicited order at the over the NBBO. Upon submitting an Agency Order SOM, PIM, FLEX PIM or FLEX SOM proposed execution price so long as, at the time of into a SAM Auction, the initiating Trading Permit (collectively ''Paired Auctions''), execution: (i) the execution price is equal to or Holder (''Initiating TPH'') must also submit a better than the best bid or offer on the Exchange, respectively, to trade against the Agency contra-side second order (''Initiating Order'') for the and (ii) there are no Priority Customer Orders or Orders for the accounts of Market same size as the Agency Order. The Initiating Order Priority Customer Responses on the Exchange that guarantees that the Agency Order will receive an Makers assigned to the options class. are priced equal to the proposed execution price. execution at no worse than the auction price. Upon The Exchange notes Market Makers may If there are Priority Customer Orders or Priority commencement of an auction, market participants Customer Responses on the Exchange on the not be solicited as the contra-side for may submit responses to trade against the Agency opposite side of the Agency Order at the proposed complex Facilitation Auctions, SOMs Order. See Cboe Rule 5.39(c)(5). At the conclusion execution price and there is sufficient size to of a SAM Auction, depending on the contra-side and PIMs. Cboe does not similarly limit execute the entire size of the Agency Order, the interest (including auction responses) available, the the contra-side for their complex AIM, Agency Order will be executed against the bid or Initiating Order may be allocated the entire Agency offer, and the solicited order will be cancelled. See complex SAM, complex FLEX AIM or Order or none of the Agency Order. See Cboe Rule Options 3, Section 11(d)(3)(A). If at the time of complex FLEX SAM auctions. The 5.39(e). execution there is sufficient size to execute the 16Exchange's proposal would therefore See Securities Exchange Act Release No. entire Agency Order at an improved price (or 15101720 (November 22, 2024), 89 FR 94986 prices), the Agency Order will be executed at the apply to both simple and complex (November 29, 2024) (SR-ISE-2024-12) (Notice of improved price(s), provided the execution price is orders. Filing of Amendment No. 1 and Order Granting equal to or better than the best bid or offer on the While market participants other than Accelerated Approval of a Proposed Rule Change, Exchange, and the solicited order will be cancelled. assigned Market Makers may contribute as Modified by Amendment No. 1, To Adopt Rules See Options 3, Section 11(d)(3)(B). In each case the To List and Trade FLEX Options). Footnote 136 aggregate size of all orders, quotes and Responses liquidity to these Paired Auctions as notes that the Exchange's proposal will be at each price will be used to determine whether the consistent with current non-FLEX auction behavior, entire agency order can be executed at an improved price (or prices). including current SOM behavior. See supra note 5. 16

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either a contra-side order or responses, 3A, Section 13 to permit orders for the not subject to routing and therefore assigned Market Makers, who are the accounts of Market Makers in an would be rejected. This proposed primary source of liquidity on the assigned options class to be solicited for language is consistent with Exchange in their assigned options, are the initiating order submitted for Supplementary Material .02(d) to limited in the manner in which they execution against an Agency Order in Options 3, Section 7 and makes clear all options. The Exchange believes may provide liquidity to these Paired the treatment of IOC Orders for providing assigned Market Makers with Auctions. Given that contra-side orders purposes of Options 5, Section 4. an additional way to participate in that comprise initiating orders may be Implementation Paired Auctions will expand available allocated a percentage of the Agency The Exchange proposes to implement liquidity for these Paired Auctions, Order at the conclusion of the auctions, these proposed changes on or before Q3 which may increase execution and price the limited ability of assigned Market

1. The Exchange will issue an Makers to participate in a Paired improvement opportunities, particularly Options Trader Alert indicating the date Auction may reduce the execution for Priority Customer orders in a PIM. the changes will be implemented. opportunities for these liquidity The Exchange notes that no similar providers, which execution restriction applies to crossing 2. Statutory Basis opportunities are available to other transactions in open outcry trading. 17The Exchange believes that its market participants who may be Brokers seeking liquidity to execute proposal is consistent with Section 6(b) solicited or submit responses. against customer orders on the trading of the Act, in general, and furthers the The Exchange believes that floor regularly solicit assigned Floor 19objectives of Section 6(b)(5) of the Act, eliminating the prohibition against Market Makers in the applicable class 20in particular, in that it is designed to assigned Market Makers acting as contra for this liquidity, as they are generally in Paired Auctions would enhance price promote just and equitable principles of the primary source of liquidity in a improvement opportunities in the trade, to remove impediments to and class. Therefore, the Exchange believes Paired Auctions. This is particularly for perfect the mechanism of a free and the proposed rule change will further retail and smaller Priority Customer open market and a national market align open outcry and Paired Auctions orders in a PIM. Allowing assigned system, and, in general to protect and the execution and price Market Makers registered with the investors and the public interest. improvement opportunities available in Exchange to be facilitated or solicited as The Exchange believes the proposed both auctions by permitting the same contras may result in exposure of more rule change will promote just and participants to be solicited as contras in small Priority Customer orders to equitable principles of trade and remove Paired Auctions across all options at all potential price improvement via auction impediments to and perfect the times. processes in a PIM. The Exchange In addition to Cboe, the Exchange mechanism of a free and open market further notes that Options 3, Section notes the electronic price improvement and a national market system because it 22(d) (Limitations on Order Entry) auction of another options exchange will provide the primary liquidity provides that, prior to or after currently permits orders for the providers on the Exchange with an submitting an order to ISE, a Member accounts of appointed market-makers to additional way to participate in Paired cannot inform another Member or any be solicited as the contra orders for that Auctions. Additionally, by permitting other third party of any of the terms of auction. brokers to solicit primary liquidity 18the order for purposes of violating this providers in a class for Paired Auctions, Rule. This protection will remain in the Exchange believes brokers will be place under the proposed rule change to able to more efficiently locate liquidity subparagraph (a) at Options 5, Section 4, address any potential information to fill their customer orders, particularly Order Routing, which currently states, leakage concerns in the Paired Auctions during times of volatility. As a result, ''Immediate-or-Cancel (''IOC'') Orders as Options 3, Section 22 applies to the the Exchange believes the proposed rule will be cancelled immediately if not Paired Auctions. change will likely expand available executed, and will not be routed.'' The The Exchange believes that the liquidity for these Paired Auctions, Exchange proposes to instead state that, restriction has become operationally which may create additional execution ''Immediate-or-Cancel (''IOC'') Orders outdated in current market structure. It and price improvement opportunities will be rejected and will not be routed.'' is common practice that Agency Orders for market participants at all times, While the current sentence reflects the already involve the same Market Maker which ultimately benefits investors. operation of IOC Orders as provided in firm acting as both the contra-side (in an The Exchange believes the proposed away Market Maker capacity) and Supplementary Material .02(d) to rule change is consistent with the Act auction respondent (as an assigned Options 3, Section 7, within the context because it will further align open outcry Market Maker registered on the of routing, the sentence may be and Paired Auctions and the execution Exchange). Eliminating this restriction confusing. Options 5, Section 4 explains and price improvement opportunities would reduce an arbitrary and the manner in which various order available in both auctions by permitting unnecessary burden and allow Market types are handled differently for the same participants to be solicited as Makers to structure more efficient purposes of routing. An IOC Order will the contra-side in both types of auctions auction processes, which may not rest on the order book by its across all options. Currently, assigned ultimately promote greater competition definition and cannot route. The Market Makers may be solicited with among Market Makers and provide Exchange proposes to amend the respect to crossing transactions on market participants with enhanced language to be clear that IOC Orders are trading floors but may not be solicited opportunities for price improvement. with respect to Paired Auctions. The 21The Exchange is proposing to amend Exchange believes there is no reason to See e.g., Nasdaq Phlx LLC (''Phlx'') Options 8 17Rules. Options 3, Section 11, Supplementary See NYSE American, Inc. (''American'') Rule 1815 U.S.C. 78f(b). Material .06 to Options 3, Section 13, 971.1NY and NYSE Pillar Options FIX Gateway 1915 U.S.C. 78f(b)(5). Protocol Specification, Section 5.2, New Cross Options 3A, Section 12, and 20Order. See also https://www.nyse.com/markets/ Phlx's trading floor does not have a similar 21Supplementary Material .02 to Options restriction. See Phlx Options 8 Rules. american-options/cube-customer-best-execution.

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restrict a Market Maker's ability to with knowledge that there is a pre- Cboe's SAM. The key differences noted provide liquidity into Paired Auctions existing unexecuted agency, proprietary, in the Purpose section do not when they are able to similarly provide or solicited order on the Exchange. differentiate the Facilitation Mechanism that liquidity in open outcry trading. As Members may demonstrate that orders for purposes of permitting orders by noted above, the electronic price were entered without knowledge by Members in a Facilitation Mechanism to improvement auction of another options providing evidence that effective trade against the Agency Orders for the exchange currently permits orders for information barriers between the accounts of Market Makers assigned to the accounts of assigned market makers persons, business units, and/or systems the options class. The Exchange's to be solicited as the contra-side orders entering the orders onto the Exchange aforementioned analysis applies to the for that auction. were in existence at the time the orders Facilitation Mechanism as it applies to 22In particular, the Exchange believes were entered. Such information barriers a SOM, PIM or FLEX SOM or FLEX PIM the proposed rule change will promote must be fully documented and provided in the same manner as it applies to the competition in Paired Auctions, to the Exchange upon request. Further, Paired Auctions. including competition to initiate Paired the Exchange notes that Supplementary Auctions, which will remove Material .01 to Options 3, Section 13 impediments to and perfect the prohibits a pattern or practice of The Exchange's proposal to amend mechanism of a free and open market submitting orders or quotes or the Options 5, Section 4(a) is consistent and a national market system, and, in purpose of disrupting or manipulating with the Act because it will bring general, to protect investors. The PIM Auctions, and Options 9, Section 9 greater clarity to the current rule text by Exchange believes the availability of requires Members to establish, maintain, clearly explaining that IOC Orders will this liquidity to Agency Orders will and enforce written policies and not route. positively affect the experience for procedures reasonably designed to B. Self-Regulatory Organization's Agency Orders and overall quality of the prevent the misuse of material, Statement on Burden on Competition auctions. Furthermore, the Exchange nonpublic information by Members and believes increasing the number of their associated persons. Finally, The Exchange does not believe that market participants available to be Options 3, Section 22(d) (Limitations on the proposed rule change will impose solicited may increase competition to Order Entry) provides that, prior to or any burden on competition that is not provide initiating orders, which may after submitting an order to ISE, a necessary or appropriate in furtherance lead to a Paired Auction being initiated Member cannot inform another Member of the purposes of the Act. at a better price. More market or any other third party of any of the The Exchange does not believe the participants competing to provide terms of the order for purposes of proposed rule change will impose any initiating orders may lead to solicited violating the Rule. burden on intramarket competition that parties providing more aggressive initial The Exchange believes the proposed is not necessary or appropriate in prices. The Exchange believes the rule change is not designed to permit furtherance of the purposes of the Act ability of all market participants, unfair discrimination between because it provides the same execution including assigned Market Makers that customers, issuers, brokers, or dealers opportunities in Paired Auctions to did not submit an initiating order, to because it will permit orders for assigned Market Makers that are become the contra-side to a Paired accounts of assigned Market Makers to currently available to all other market Auction will continue to provide be solicited in the same manner as participants. Additionally, the proposed competition for executions against orders for the accounts of all other rule change will further align open Agency Orders. market participants. Currently, all outcry and Paired Auctions and the The Exchange believes any risk that market participants other than assigned execution and price improvement assigned Market Makers may misuse the Market Makers may be solicited as the opportunities available in both auctions nonpublic information of an upcoming contra-side and submit responses in by permitting the same participants to Paired Auction is de minimis. Paired Auctions for all options. Given be solicited as a contra-side in auctions Supplementary Material .03 to Options the additional costs and obligations across all options. 3, Section 22 provides that the exposure associated with being an assigned The Exchange does not believe the requirement applicable to principal Market Maker, the Exchange does not proposed rule change will impose any transactions in Options 3, Section believe these Market Makers should burden on intermarket competition that 22(b) applies to the entry of orders have fewer execution opportunities with 23 is not necessary or appropriate in respect to volume submitted for furtherance of the purposes of the Act execution through Paired Auctions and See supra notes 5 and 18. 22 because it relates to orders submitted not for electronic execution against Electronic Access Members may not execute as 23 into Paired Auctions on the Exchange. principal orders they represent as agent unless (i) interest in the book. The Exchange Additionally, the Exchange notes that, agency orders are first exposed on the Exchange for believes the proposed rule change will at least one (1) second, (ii) the Electronic Access in addition to Cboe, the rules of at least provide all Market Makers on the Member has been bidding or offering on the one other options exchange permits Exchange with the same ability to Exchange for at least one (1) second prior to orders for the accounts of assigned receiving an agency order that is executable against participate in Paired Auctions in all market makers to be solicited as contra- such bid or offer, or (iii) the Member utilizes the options at all times, which may further Facilitation Mechanism pursuant to Options 3, side orders for that exchange's increase execution and price Section 11(b) and (c); (iv) the Member utilizes the electronic price improvement auction. improvement opportunities for market 24Price Improvement Mechanism for Crossing The Exchange believes the proposed Transactions pursuant to Options 3, Section 13; (v) participants. rule change may improve price the Member utilizes Qualified Contingent Cross Cboe does not have an auction Orders pursuant to Options 3, Section 12(c) and (d); competition within Paired Auctions, equivalent to the Facilitation (vi) the Member utilizes a Customer Cross Order because the primary liquidity providers Mechanism, however the Exchange's pursuant to Options 3, Sections 12(a) or (b); or (vii) will be able to increase participation in the Member utilizes a Complex Order Exposure Facilitation Mechanism is similar to Paired Auctions. pursuant to Supplementary Material .01 to Options 3, Section 14. Electronic Access Members may not Options 3, Section 11(d) and (e). See Options 3, execute as principal orders they represent as agent Section 22(b). See supra note 18. within the Solicitation Mechanism pursuant to 24

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1. Self-Regulatory Organization's Paper Comments Statement of the Terms of Substance of • Send paper comments in triplicate The Exchange's proposal to amend the Proposed Rule Change to Secretary, Securities and Exchange Options 5, Section 4(a) does not impose Commission, 100 F Street NE, an undue burden on competition, rather The Exchange proposes to permit Washington, DC 20549-1090. the proposal clarifies the current rule orders for the accounts of Market text. All submissions should refer to file Makers assigned to the options class to number SR-ISE-2026-18. This file be solicited for the initiating order C. Self-Regulatory Organization's 3number should be included on the submitted for execution against an Statement on Comments on the subject line if email is used. To help the agency order into a Facilitation Proposed Rule Change Received From Commission process and review your Mechanism, the Solicited Order Members, Participants, or Others comments more efficiently, please use Mechanism (''SOM'') or a Price No written comments were either only one method. The Commission will Improvement Mechanism (''PIM''). solicited or received. post all comments on the Commission's The text of the proposed rule change internet website (https://www.sec.gov/ III. Date of Effectiveness of the is available on the Exchange's website at rules/sro.shtml). Copies of the filing will Proposed Rule Change and Timing for https://listingcenter.nasdaq.com/ be available for inspection and copying Commission Action rulebook/mrx/rulefilings, and at the at the principal office of the Exchange. principal office of the Exchange. Because the foregoing proposed rule Do not include personal identifiable change does not: (i) significantly affect information in submissions; you should II. Self-Regulatory Organization's the protection of investors or the public submit only information that you wish Statement of the Purpose of, and interest; (ii) impose any significant to make available publicly. We may Statutory Basis for, the Proposed Rule burden on competition; and (iii) become redact in part or withhold entirely from Change operative for 30 days from the date on publication submitted material that is which it was filed, or such shorter time In its filing with the Commission, the obscene or subject to copyright as the Commission may designate, it has Exchange included statements protection. become effective pursuant to Section concerning the purpose of and basis for All submissions should refer to file 19(b)(3)(A)(iii) of the Actand the proposed rule change and discussed number SR-ISE-2026-18 and should be 25subparagraph (f)(6) of Rule 19b-4 any comments it received on the submitted on or before May 13, 2026. thereunder. proposed rule change. The text of these 26For the Commission, by the Division of At any time within 60 days of the statements may be examined at the Trading and Markets, pursuant to delegated filing of the proposed rule change, the places specified in Item IV below. The authority. 27Commission summarily may Exchange has prepared summaries, set Vanessa A. Countryman, temporarily suspend such rule change if forth in sections A, B, and C below, of Secretary. it appears to the Commission that such the most significant aspects of such [FR Doc. 2026-07785 Filed 4-21-26; 8:45 am] action is necessary or appropriate in the statements. public interest, for the protection of BILLING CODE 8011-01-P A. Self-Regulatory Organization's investors, or otherwise in furtherance of Statement of the Purpose of, and the purposes of the Act. If the SECURITIES AND EXCHANGE Statutory Basis for, the Proposed Rule Commission takes such action, the COMMISSION Change Commission shall institute proceedings
   to determine whether the proposed rule 1. Purpose [Release No. 34-105267; File No. SR-MRX- should be approved or disapproved. 2026-16]

2. Solicitation of Comments Self-Regulatory Organizations; Nasdaq Interested persons are invited to Options 3, Section 11 (Auction MRX, LLC; Notice of Filing and submit written data, views and Mechanisms), Supplementary Material Immediate Effectiveness of Proposed arguments concerning the foregoing, Rule Change To Amend Various .06 to Options 3, Section 13 (Price including whether the proposed rule Auction Mechanisms Improvement Mechanism for Crossing change is consistent with the Act. Transactions) to permit orders by April 17, 2026. Comments may be submitted by any of Members in a Facilitation Mechanism, a Pursuant to Section 19(b)(1) of the the following methods: SOM, and a PIM to trade against the Securities Exchange Act of 1934 Agency Orders for the accounts of Electronic Comments 4 (''Act''), and Rule 19b-4 thereunder, Market Makers assigned to the options 1 2 notice is hereby given that on Apri1 13, • Use the Commission's internet class. Cboe Exchange, Inc. (''Cboe'') 2026, Nasdaq MRX, LLC (''MRX'' or comment form (https://www.sec.gov/ recently received approval to amend its ''Exchange'') filed with the Securities rules/sro.shtml); or rules in an identical manner. The 5 and Exchange Commission (''SEC'' or • Send an email to rule-comments@ Exchange also proposes an amendment ''Commission'') the proposed rule sec.gov. Please include file number SR- to Options 5, Section 4 relating to the change as described in Items I, II, and ISE-2026-18 on the subject line. III, below, which Items have been The ''initiating order'' is the order comprised of prepared by the Exchange. The 3 principal interest or a solicited order(s) submitted 15 U.S.C. 78s(b)(3)(A)(iii). Commission is publishing this notice to 25 to trade against the order the submitting Electronic 17 CFR 240.19b-4(f)(6). In addition, Rule 19b- solicit comments on the proposed rule 26 Access Member represents as agent (the ''Agency 4(f)(6) requires a self-regulatory organization to give change from interested persons. Order''). the Commission written notice of its intent to file Agency Orders are orders entered by a Member the proposed rule change at least five business days 4 that are represented as agent. prior to the date of filing of the proposed rule 17 CFR 200.30-3(a)(12). change, or such shorter time as designated by the See Securities Exchange Act Release No. 105049 27 5 15 U.S.C. 78s(b)(1). Commission. The Exchange has satisfied this (March 19, 2026), 91 FR 14057 (March 24, 2026) 1 17 CFR 240.19b-4. requirement. (SR-Cboe-2025-090). 2

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