MEMX eliminates minimum roster requirement for Obvious Error Panel
Effective Aug. 13, 2026, the change removes the ten-member minimum for panel representatives, affecting MEMX options members.
On August 13, 2026 MEMX LLC filed a non-controversial proposed rule change with the Securities and Exchange Commission (Release No. 34-106157; File No. SR-MEMX-2026-27; FR Doc No. 2026-17063). The notice, published August 18, 2026, solicits comments and states the amendment is immediately effective.
The amendment would modify Exchange Rule 20.6 by eliminating the requirement that the Exchange maintain a minimum roster of at least ten market-maker (MM) Representatives and at least ten non-market-maker (Non-MM) Representatives for the Obvious Error Panel.
Rule 20.6(l) continues to require each Obvious Error Panel to consist of the Exchange's Chief Regulatory Officer or a designee, one MM Representative, and two Non-MM Representatives. The prohibition on panel members having affiliations with parties to the trade and the expectation of equitable participation remain unchanged.
MEMX argues that the fixed roster of twenty or more representatives imposes an unnecessary administrative burden and that the same level of fairness can be achieved through the existing panel composition and conflict-of-interest safeguards. The Exchange notes that comparable national securities exchanges, such as Nasdaq, operate without a minimum roster requirement.
The proposal is classified as "non-controversial" under Section 19(b)(3)(A)(iii) of the Act, and the Commission is inviting comments from interested persons during the comment period.