Nasdaq PHLX proposes to eliminate duplicate information circulars for UTP products

On October 20, 2026 Nasdaq PHLX LLC filed a proposed rule change (Release No. 34-106796; File No. SR-Phlx-2026-63) that the SEC has made immediately effective. The filing amends Equity 8A, Section 5 to add cross-references to General 9, Section 10 (Recommendations to Customers) and Equity 2, Section 20 (Customer Disclosures), and to replace the obsolete reference to any "UTP Security" with a broader reference to any "security."

The centerpiece of the amendment is the deletion of Equity 8A, Section 5(a)(2)(A), which currently obligates the Exchange to distribute an information circular to members before trading each UTP Exchange Traded Product. The Exchange argues that the primary listing exchange already provides identical disclosures, making a separate circular redundant. Consequently, the requirement to issue a duplicate circular is removed.

To preserve the notification function, the Exchange proposes to amend Equity 8A, Section 5(a)(2)(B)(ii). The revised language requires that a written description be supplied in a form approved by the listing exchange or prepared by the open-ended management company issuing the securities, and that it be delivered no later than the confirmation of the first transaction in the series. Members will be informed of this requirement through an information circular only when the listing exchange mandates it.

Additional technical changes include renumbering the subsections of Section 5(a)(2) from (B)-(E) to (A)-(D) and updating the cross-reference to "UTP Exchange Traded Product." The full text of the proposal is available on the Exchange's website and at its principal office. Comments are solicited from interested parties as required by Section 19(b)(1) of the Exchange Act.