U.S. Options

MIAX Sapphire® Options Exchange Rules Incorporated by Reference

MIAX Sapphire has rules that incorporate by reference existing rules of the following other self-regulatory organizations as identified in the MIAX Sapphire Rulebook: Miami International Securities Exchange, LLC (MIAX Options); Chicago Board Options Exchange, Inc. (CBOE); New York Stock Exchange (NYSE); and the Financial Industry Regulatory Authority (FINRA).

Certain proposed rules of MIAX Sapphire incorporate by reference existing rules of MIAX Options, and certain MIAX Options rules incorporate by reference existing rules of CBOE, NYSE and FINRA. Accordingly, MIAX Sapphire is indirectly incorporating by reference certain CBOE, NYSE and FINRA rules.

Specifically, MIAX Sapphire incorporates by reference changes made to each MIAX Options, CBOE, NYSE and FINRA rule that is cross-referenced in the following MIAX Sapphire Rules: Chapter III (Business Conduct); Chapter VII (Exercises and Deliveries); Chapter VIII (Records, Reports and Audits); Chapter IX (Summary Suspension); Chapter XI (Hearings, Review and Arbitration); Chapter XIII (Doing Business with the Public); Chapter XIV (Order Protection, Locked and Crossed Markets); Chapter XV (Margins); Chapter XVI (Net Capital Requirements); Chapter XVII (Consolidated Audit Trail Compliance Rule); and Chapter XVIII (Index Options).

The following rules are cross-referenced in the MIAX Sapphire Rules to rules of FINRA, CBOE and NYSE:
 

• Rules relating to the arbitration of disputes (see, MIAX Options Rule 1107, which cross references the Rule 12000 Series and Rule 13000 Series of the FINRA Manual – Code of Arbitration Procedures for Customer Disputes and Code of Arbitration Procedures for Industry Disputes)
• Rules relating to the transfer of customer accounts (see, MIAX Options Rule 1321, which cross references FINRA Rule 11870, the transfer of customer accounts rule)
• Rules relating to initial and maintenance margin requirements (see, MIAX Options Rule 1502, which cross references initial and maintenance margin the rules of both CBOE and NYSE)
• Rules relating to the supervision of accounts (see, MIAX Options Rule 1308, which cross references both NYSE and FINRA Rules)
• Rules relating to Consolidated Audit Trail Compliance (see, MIAX Options Rule 1701, which cross references FINRA Rule 4512(c))

Thus, whenever FINRA amends its arbitration rules and whenever CBOE and NYSE amend their margin rules, MIAX Sapphire is required to provide written notice to its members of those proposed changes and provide a link to the CBOE and NYSE websites where the proposed rule change filings are located. In addition, whenever MIAX Options amends its rules which MIAX Sapphire has incorporated by reference, MIAX Sapphire is required to provide written notice to its members of those proposed changes and provide a link to the section of the website where the proposed rule change filings of MIAX Options are located.