MEMX proposes new rules for securities event contracts on its options exchange
The filing, submitted August 11, 2026, would bind MEMX Options participants to Chapter 30 governing cash-settled binary contracts tied to issuer financial metrics.
On August 11, 2026 MEMX LLC filed with the SEC a proposed rule change to adopt a new Chapter 30 of the MEMX Exchange Rules for the listing and trading of securities event contracts on MEMX Options, as required by Section 19(b)(1) of the Securities Exchange Act of 1934 and Rule 19b-4.
The proposal seeks to create cash-settled, European-style binary options whose payout is fixed at creation and is triggered only if an objective, verifiable event relating to the financial performance of an issuer of an NMS stock occurs - examples include earnings, revenue, or sales thresholds.
Under the filing, the contracts would be subject to MEMX's existing options regulatory framework, including access, trading conduct, surveillance, and disciplinary authority, while Chapter 30 would supplement those rules with product-specific provisions on definitions, contract terms, expiration, exercise price selection, order entry, contract adjustment, resolution, and position limits. Clearance and settlement would be handled by a registered clearing agency designated as the "Clearing Corporation."
The filing notes that Cboe Exchange, Inc. has recently submitted a similar proposal for binary KPI options; MEMX's approach establishes its own securities event contract framework and adopts distinct rule provisions it deems better suited to these products.
The notice, published in the Federal Register Vol. 91, No. 165 on August 27, 2026 (pages 55384-55403, FR Doc No 2026-17465), carries Release No. 34-106182 and File No. SR-MEMX-2026-25, and invites comments from interested persons.
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