MX2 LLC proposes monthly review of Professional orders
The rule would bind MX2 members to review Public Customer activity and reclassify orders as Professional within five days after each month, effective immediately upon filing
On September 15, 2026, MX2 LLC filed with the SEC a proposed amendment to its Rule 16.1, and the filing became effective immediately, as noted in Release No. 34-106503, File No. SR-MX2-2026-07, FR Doc No. 2026-19954, published in the Federal Register Volume 91, Number 188, pages 61901-61904.
The amendment would add language to Rule 16.1 to require a monthly review of Professional orders. Under the proposed definition, a "Professional" is any person or entity that is not a broker or dealer and places more than 390 orders in listed options per day on average during a calendar month for its own beneficial accounts. Members would be required to mark such orders and, within five days after the end of each calendar month, reclassify any Public Customer orders that meet the threshold as Professional orders for the following month.
MX2 cites the recent launch of MX2 Options on September 14, 2026, and similar rule changes at Nasdaq ISE and MEMX Options as the basis for codifying the monthly look-back. The exchange states that the change does not alter existing workflow because broker-dealers already calculate daily averages to satisfy FINRA Rules 2090 and 2111.
The exchange argues that the amendment is consistent with Section 6(b)(5) of the Securities Exchange Act of 1934, which requires exchange rules to prevent fraudulent practices and promote equitable trade. Accordingly, the proposal is presented as a measure to align MX2's rules with industry practice and protect investors.
The Commission is publishing this notice to solicit comments from interested persons on the proposed rule change.
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