Regulatory Alert
MIAX Emerald
August 02, 2024 | 03:42 PM
MIAX Sapphire Options - Compliance with Section 11(a) of the Securities Exchange Act of 1934, as Amended (the Act)
Section 11(a) of the Securities Exchange Act prohibits a member of a national securities exchange from effecting transactions on that exchange for its own account, the account of an associated person, or an account over which it or an associated person exercises investment discretion (collectively, “covered accounts”) unless an exception applies.
Rule 11a2-2(T) permits an exchange member, subject to certain conditions, to effect transactions for covered accounts. To qualify for the exception, exchange members must meet the following conditions:
- Off Floor Transmission – A member must transmit the order from off the exchange floor;
- Non-Participation in Order Execution – A member may not participate in the execution of the transaction once it has been transmitted to the member performing the execution;
- Execution Through an Unaffiliated Member – A member may not be affiliated with the executing member; and
- Non-Retention of Compensation for Discretionary Accounts – With respect to an account over which the member has investment discretion, neither the member nor its associated person may retain any compensation in connection with effecting the transaction except as provided in the Rule.
Please direct questions to the Regulatory Department at Regulatory@miaxglobal.com or (609) 897-7309.