MX2 eliminates minimum roster requirement for Obvious Error Panel
The amendment applies to MX2 options members and takes effect immediately upon filing on August 24, 2026
On August 24, 2026 MX2 LLC filed a proposal to amend Exchange Rule 20.6, which governs nullification and adjustment of options transactions involving obvious errors. The filing, identified as Release No. 34-106197 and File No. SR-MX2-2026-04, was published in the Federal Register on August 26, 2026 (Vol. 91, No. 167, pp. 55918-55921) and is effective immediately.
Under the current rule, each Obvious Error Panel must include the Exchange's Chief Regulatory Officer or a designee, one market-maker (MM) representative, and two non-market-maker (Non-MM) representatives. Rule 20.6(l)(2) also requires the Exchange to maintain a minimum roster of at least ten MM representatives and at least ten Non-MM representatives - a total of twenty or more designated individuals - to be called upon as needed.
The proposed amendment removes the fixed minimum roster requirement, citing an unnecessary administrative burden on the Exchange and its options members. MX2 asserts that the panel composition and conflict-of-interest safeguards will remain unchanged, and that the Exchange will continue to designate a sufficient number of qualified representatives to convene panels promptly.
The Exchange contends that the change is consistent with Section 6(b) of the Securities Exchange Act of 1934, including the provisions that exchange rules promote just and equitable principles of trade and avoid unfair discrimination. The amendment is presented as a non-controversial rule change under Section 19(b)(3)(A)(iii) of the Act.
The Commission is soliciting comments on the proposal. The full text of the amendment and supporting statements are available on MX2's website at https://info.memxtrading.com/regulation/rules-and-filings/.
Further reading