Nasdaq MRX changes PMM appointment rule to permissive standard
The amendment, effective immediately, lets MRX appoint a Primary Market Maker only when appropriate, affecting all MRX options classes and members.
On September 2, 2026 Nasdaq MRX, LLC filed a proposed rule change with the SEC (Release No. 34-106387; File No. SR-MRX-2026-35) to amend Options 2, Section 3, Appointment of Market Makers. The Commission published the notice on September 15, 2026 (FR Doc No. 2026-19130, Vol. 91, No. 180, pp. 59281-59283) and granted immediate effectiveness.
The amendment replaces the current requirement that a Primary Market Maker (PMM) be appointed to each options class with language that a PMM "may be appointed" to each class. This permissive standard gives the Exchange flexibility to determine, based on market conditions and the availability of qualified applicants, whether a PMM appointment is appropriate.
The Exchange notes that Competitive Market Makers (CMMs) will continue to provide liquidity in any class lacking a PMM, as CMMs are subject to continuous quoting obligations and must quote two-sided in 60% of series in each class. The substantive obligations and privileges of a PMM, including the 90% two-sided quoting requirement and Valid Width Quote during the Options Opening Process, remain unchanged.
The proposal cites Section 6(b) of the Securities Exchange Act of 1934 as its statutory basis and asserts that the change does not impose any unnecessary burden on competition. By aligning MRX's rule with the framework on Nasdaq Phlx, the Exchange seeks to preserve market-quality protections while enhancing administrative flexibility.
Further reading