The Securities and Exchange Commission (SEC) has approved a rule change proposed by MIAX PEARL, LLC to amend its By-Laws to align with an Equity Rights Program (ERP). This change allows certain exchange members to nominate or appoint a representative to the MIAX PEARL Board of Directors if they meet specified criteria and thresholds in trading volume and exchange fees over a set period. ERP members will have the opportunity to nominate a director or appoint an observer with non-voting rights to the board, providing greater representation for those active in trading. These adjustments maintain compliance with regulatory requirements, ensure fair representation, and preserve the board's composition and duties.
Simple Explanation
The SEC has said "yes" to a plan by a group called MIAX PEARL so that if some people trade a lot, they can help pick or watch the people in charge, like a team captain, but they can't vote. This way, the people who do a lot get a say, but no one gets too much power.